Coca-Cola Breaks Ground for New Distribution Center, Inaugurates New Production Line

Food and beverage industry associations urge the Indonesian government to cancel the planned excise tax on sweetened beverages as it will hit the industry and cost massive layoffs, a representative of the associations said. (GA Photo/Defrizal)

By : GlobeAsia | on 5:50 PM August 20, 2015
Category : Business, Corporate News

Pandaan, Pasuruan. Leading beverage company Coca-Cola Amatil Indonesia held a groundbreaking ceremony for its fourth major distribution center and inaugurated its sixth production line on Thursday as part of its commitment to invest up to $500 million in Indonesia over the next three to four years.

Both facilities are situated in Pandaan, Pasuruan district, in East Java and cost $63 million.

“Indonesia is the second biggest contributor to the Coca-Cola Amatil Group and we are confident there are more opportunities to leverage," said CCAI president director Kadir Gunduz.

"Many regions in Indonesia, including East Java, are experiencing rapid growth, and our commitment to invest enables us to cater to the growing market demand. The Mega DC in Alba and the new production line at CCAI Pandaan plant represent $63 million in investment in the region,” Gunduz added.

Coca Cola Company executive vice president Ahmet C. Bozer, director of Beverage and Tobacco Directorate General of the Agro Industry at the Ministry of Industry Faiz Achmad and deputy chairman of the National Investment Board Agency Azhar Lubis were also present to witness the ceremony.

CCAI is a Sydney-based subsidiary of Coca-Cola Amatil (CCA), one of the biggest Coca-Cola bottlers in the world. The Coca-Cola Company, an Atlanta-based company, is the world's biggest beverage company, claiming its products are available in more than 200 countries and have beverage turnover rate of 1.9 billion servings a day.

"For 130 years, The Coca-Cola Company has been in business and we have seen times of faster economic growth or slower economic growth. During those times, there is one thing that is most important to keep in mind, and that is you keep investing. When the economic conditions become more challenging, this is the time to invest more because things will be better in the future," Bozer said.

"Obviously the challenges are not peculiar to Indonesia. The world economic environment is quite uneven, and we have a lot of countries that are growing slower. This is nothing new for us; this does not deteriorate our plan to invest."

The new production line at the Pandaan Plant and Distribution Center, built on a six hectares of land, currently supplies 30 percent of Coca-Cola's production volume in Indonesia. The two new facilities will increase CCAI's total production capacity to 885,860 bottles per hour.

CCAI, which was established in January 1992 and has been operating in the archipelago for 23 years, now operates 10 manufacturing facilities in Sumatra, Java and Bali, with the support of over 200 sales and distribution centers across Indonesia.

The company employs a direct workforce of more than 12,000 people, distributing millions of cases of refreshing drinks to more than 520,000 outlets across the nation.

CCAI has expanded its portfolio from carbonated soft drinks into various beverage products, including spring water, fruit juices, sports and energy drink to bottled green tea products.


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