US snacks and beverages giant PepsiCo is planning to re-enter the Indonesian snacks market, with a new production facility set to be built in Cikarang, West Java. The company has committed an estimated $200m to develop the Indonesian market, taking advantage of investment incentives from the Indonesian government.
PepsiCo previously ended a joint venture in Indonesia in early 2021, selling its stake to local partner PT Indofood CBP Sukses Makmur. The joint venture produced popular snack brands Lay’s, Cheetos, and Doritos for the local market. However, under the terms of the sale agreement, PepsiCo was prohibited from manufacturing competing snack food products in Indonesia for three years.
The new facility in Cikarang is expected to start producing snacks by early 2025, positioning PepsiCo to capitalize on the country’s expanding economy and evolving consumer needs. The company is committed to sourcing sustainable raw materials, including corn and palm oil, and using renewable power sources in its operations.
Asif Mobin, CEO of PepsiCo Indonesia, emphasized the company’s commitment to the country’s sustainability objectives and the communities it serves. The expansion represents a significant investment in Indonesia’s food and beverage sector and aligns with the government’s efforts to create a favorable investment climate.
