Food and beverage giant, PepsiCo is making its comeback into Indonesia as it recently announced plan to build a 60,000 sq.metre snack factory in Cikarang, West Java, with an investment of US$200 million.
Its local affiliate, PepsiCo Indonesia has committed to investing in the snack factory over a 10-year period and is expected to commence production in 2025. The new plant will be environmental-friendly utilising 100% renewable electricity and recycled water system.
The move also marks the company’s return to the country after a 4-year absence. The new plant will produce halal certified snacks to meet growing demand in Indonesia as well as for export markets. “It also marks the beginning of our direct (100%) investments in Indonesia,” said Asif Mobin, CEO of PepsiCo Indonesia.
Indonesian consumers have been without Lays, Cheetos and Doritos for the past 3 years, after the snacking giant’s affiliate – Fritolay Netherlands Holding BV – ended a 30-year joint venture (JV) with PT Indofood CBP Sukses Makmur (ICBP), a unit of Indonesia’s largest food company Indofood Group in 2021. The 2 partners had entered the JV in 1990 to produce and distribute Frito-Lay snacks throughout Indonesia.
PepsiCo also discontinued its carbonated drinks after its contract expired with PT Anugerah Indofood Barokah Makmur (AIBM), the entity holding the license for Pepsi’s production, sale and distribution in the country during that period.
Asif asserted that with the recent major investment, PepsiCo is all set to support Indonesia’s goal of downstream expansion in the food and beverage industry. The new venture is also just the beginning of PepsiCo direct investment in Indonesia.
The new plant will also generate significant employment opportunities for Indonesians while at the same time build local talents and strengthen domestic value chain.