INDONESIA – PepsiCo, an American snacks and beverages giant, has made a significant move to re-enter the Indonesian snack market by breaking ground on a state-of-the-art production facility in Cikarang, West Java.

The new manufacturing plant will occupy an impressive 60,000 square meters of space dedicated solely to snack production.

The earmarked long-term US$200 million investment represents the company’s commitment for the development of the Indonesian market.

“In Indonesia, our expansion signifies more than growth – it represents our commitment to the country, its sustainability objectives, and the communities we serve,” Asif Mobin, CEO of PepsiCo Indonesia said.

PepsiCo’s new production facility, set to commence snack production by early 2025, will additionally emphasize the company’s aim to leveraging local talent, utilizing local raw materials, and strengthening the domestic value chain.

 “With its rapidly expanding economy, dynamic demographic profile, and evolving consumer needs, Indonesia presents unparalleled opportunities, particularly in the F&B sector,” the company stated.

Recognizing the growth potential in Indonesia, the government has implemented policies to foster a favorable investment climate for the business.

The investment incentives by the Indonesian government also facilitated PepsiCo’s decision to return to Indonesian market.

In early 2021, PepsiCo had exited its snacks joint venture in Indonesia, selling its minority stake to local partner PT Indofood CBP Sukses Makmur.

The terms of the sale agreement prevented PepsiCo from manufacturing, packaging, selling, marketing, or distributing any competing snack food products in Indonesia for three years.

The joint venture had previously been responsible for producing popular snack brands such as Lay’s, Cheetos, and Doritos for the local market.

While PepsiCo did not provide specific reasons for its exit from the partnership, it is now poised to re-establish its presence in the country.

In alignment with this conducive environment, PepsiCo Indonesia has reaffirmed its dedication to long-term investment in the country.

Moreover, PepsiCo has committed to sourcing the majority of raw materials for its snacks, including corn and palm oil, from sustainable sources.

The company also aims to power its operations using renewable energy sources, furthering its sustainability agenda.

PepsiCo’s return to the Indonesian snack market is not only aligns to its belief in the country’s potential but also a demonstration of its commitment to sustainable practices and community development.

With the construction of the new production facility well underway, PepsiCo is set to once again make its mark in Indonesia’s thriving snack industry.

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