USD$60 million for Expansion in Eastern Indonesia

Coca-Cola Amatil Indonesia Rolls out an Investment of USD 60 million for Expansion in Eastern Indonesia

Coca-Cola Amatil Indonesia (CCAI) marks its 25th year of operation in Indonesia by rolling out a new state of the art facility in Pandaan, East Java. The 6 ha facility houses CCAI’s 4th Mega Distribution Center after Medan, Bekasi, and Semarang; and 2nd Packaging Service Division (PSD) after Bekasi. CCAI Pandaan Mega DC and PSD will help CCAI to better serve the ever-growing market in eastern Indonesia, out of East Java.

Coca-Cola Amatil Group (Amatil) Managing Director Alison Watkins, and President Director of CCAI Kadir Gunduz inaugurated the facility together with Iain McLaughlin, President of ASEAN Business Unit The Coca-Cola Company (TCCC). Key government representatives were also present, including Minister of Industry Airlangga Hartato, Chairman of National Investment Board Agency Thomas Trikasih Lembong, Minister of Trade Enggartiasto Lukita, and the Governor of East Java Soekarwo.

“It has been a tremendous 25 years since we first entered Indonesia,” said the Managing Director of Amatil Group Alison Watkins. “Today, CCAI is the second biggest volume contributor to our group. Despite the challenges, our many investments are clear indicators that we intend to continuously grow together with Indonesia for many more years to come.”

Since 1992 CCAI has invested more than USD 1.6 billion in total. Currently CCAI operates 37 production lines in eight plants and employing 11,000 workforce to service 750,000+ customers in traditional and modern market across Indonesia.

“The facilities we inaugurated today are concrete symbols of our continued commitment in Indonesia, particularly in the eastern part, operating out of East Java,” explained President Director of CCAI Kadir Gunduz. “We manifest optimism in our consistent and growth-oriented plan. We are also ready to support the government’s growth agenda, just like what we have been doing for the past 25 years.”

East Java currently contribute 30% of CCAI’s total production volume through CCAI Pandaan Plant that houses six production lines. The new CCAI Pandaan Mega DC and PSD will bring significant production force of 130,000 preforms/hour, as well as additional storage capacity of more than 40.3 million bottles of products and 7,100 pallets of preform.

New facilities such as Pandaan Mega DC and PSD also bring world-class level of production skills and processes for the employee of CCAI. Similar with investment in new facilities and technology, CCAI’s commitment to invest in human resource capability building is just as strong. The first CCAI’s technical academy was founded in East Java, and its success allow CCAI to expand across Indonesia. To date, CCAI runs seven technical academies in six functions, providing ~35,000 training days every year.

For the past four years alone, CCAI has spent US$350 million in investment. The company plans to spend another US$288 million over the next three years (2017 - 2019). CCAI continues to maintain the highest standard of corporate governance in supporting its role as an active member of community and in creating strong future through strategic partnership with communities and business in the areas where it operates.

Speaking further about CCAI’s long-term commitment, Kadir added, “Our commitment is also measured by more than construction and cutting edge technology. We believe that we cannot have a sustainable and growing business unless we have sustainable mutually beneficial relationships with our communities.”

Many CCAI's CSR programs are recognized as global or national best practices. The Bali Beach Clean Up was recognized by United Nations World Tourism Organization (2016); In Southern Sumatra, CCAI was awarded best CSR practice for the collaboration with local communities in developing Coca-Cola Forest. Coca-Cola Forest combines trees planting and community empowerment programs, available in Lampung, West Java, and the newest one was launched yesterday (8/3) in Semarang; In East Java, CCAI collaborates with Sumber Makmur Abadi for Coca-Cola Tree-Nursing Forest that was acknowledged by Indonesia's Ministry of Social Affairs in late 2016.