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Coca-Cola opens US$42 million facility in East Java

Australia-based Coca-Cola Amatil Indonesia (CCAI), the producer and distributor of the Coca-Cola brand for the Asia-Pacific region, officially opened its latest production and distribution center on Thursday in Pandaan, Pasuruan, East Java, with an investment value of around US$42 million.

The new factory has a storage capacity of 40 million bottles and a pre-form manufacturing facility that is able to produce 1 billion plastic bottles a year.

“This new facility will make the company’s workers able to have world-class production skills,” CCAI president director Kadir Gunduz said on Thursday in a statement.

(Read also: Coca-Cola to invest US$63 million in Surabaya)

At present, CCAI already has eight bottle factories with a total of 11,000 workers in various regions in the country, including in Lampung, Bandung, Surabaya and Denpasar. It also operates three mega distribution centers in Medan, Cibitung and Semarang that run businesses with 765,000 direct customers.

“We positively welcome this expansion, which supports Indonesia’s industrial investment target of Rp 500 trillion [$37.3 billion] in 2017 in a bid to further boost the country’s economic growth,” Industry Minister Airlangga Hartarto said Thursday in a statement.

Airlangga also said that CCAI had committed to investing a total of $500 million in Indonesia within the 2015-2018 period, of which $300 million has already been realized.

According to the Industry Ministry, Indonesia’s soft drink industry is currently dominated by packaged drinking water products (AMDK) with a market share of 84 percent. (bbn)