26 February 2020 (closed)
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Coca-Cola Amatil Indonesia, one of the leading companies in the carbonated beverages and fruit juices industry in Indonesia, is optimistic that its sales in Southeast Asia's largest economy will grow by double-digit figures in 2018. This would be a great performance considering the light beverages market of Indonesia actually contracted in 2017.
Suharji Gasali, Head of Procurement at Coca-Cola Amatil Indonesia (CCAI), said the company is preparing a couple of business plans, including the introduction of new drinks to the Indonesian consumer. However, he refrained from mentioning the amount of investment that will be used for the company's business plans in 2018.
CCAI, which is a subsidiary of Australia-based Coca-Cola Amatil, has been engaged in the manufacturing and distribution of beverages in Indonesia since 1992.
Lucia Karina, Public Affairs and Communications Director of CCAI, said the company - besides the launch of new products - also plans to implement new technology and raise production capacity of certain business lines.
Sales of CCAI are actually particularly supported by non-carbonated beverages such as mineral water, ice tea, milk and isotonic drinks. Currently, the company has around 10,000 workers in its eight factories across Java, Sumatra and Bali. CCAI reportedly serves more than 830,000 customers.
In 2017 the company invested USD $110 million in its facilities in Indonesia. This is part of CCAI's USD $500 million investment package for the 2015-2019 period. A significant chunk of these funds will go to the development of a mega distribution center as well as new production lines. Currently, the company already has distribution centers in North Sumatra, West Java, Central Java, and East Java.
Last month, Triyono Prijosoesilo, Chairman of the Association of Indonesian Soft Drink Producers (Asrim), said Indonesia's soft drink sales market had actually contracted in 2017 with the sales volume sliding by 1 percent year-on-year (y/y). It was the first time during his period as chairman that Indonesia's soft drink sales declined. He attributed the contraction to Indonesia's bleak purchasing power, especially among the middle to lower class who account for about 40 percent of total demand in Indonesia's soft drinks industry.
Meanwhile, Indonesia's Industry Ministry targets to see the nation's soft drinks market grow by about 2 - 3 percent (y/y) in 2018 due to many gatherings related to the local elections (occasions when people take beverages) as well as the Asian Games.