Foreign Direct Investment

Topics: Soft drink, Coca-Cola, Indonesia Pages: 2 (502 words) Published: June 11, 2013
Australia-based Coca-Cola Amatil Indonesia (CCAI), the producer and distributor of the Coca-Cola brand for the Asia-Pacific region, plans to invest up to US$500 million over three to four years to maintain its business growth in the country, a senior executive says. 

CCAI finance director Stuart Comino said on Tuesday that the company would allocate 25 percent of total new investment on cooler units throughout the market, while the remaining 75 percent would be for manufacturing infrastructure. 

“In the past, the majority of expenditure has been in manufacturing infrastructure capacity. But today, logistic capacity and the availability of refrigeration units are important as well,” he said at the opening of a regional distribution center in Cibitung, West Java.

CCAI will spend about $90 million this year, comprising $40 million for a new production plant and warehouse in Semarang, Central Java, $20 million for a new carbonated soft drink production line in Surabaya, East Java, and $30 million for a new mineral water production line in Cibitung.

Over the past five years, the company has spent more than $155 million on its biggest production plant in Cibitung, West Java, of which $15 million was used for the construction of a regional distribution center. Both the plant and the distribution center occupy a total of 80,000 square meters.

CCAI president director Erich Rey said the company had decided to invest so much in the country in order to enable the company to take advantage of the promising business opportunities in the country.

“We believe in Indonesia because this is the country where we will grow. With all the investment, we expect growth in all areas [production, logistics, sales, etc.],” he added. 

According to Coca-Cola Amatil’s 2012 financial report, Indonesia and Papua New Guinea recorded the highest sales in volume compared to any other countries served, including Australia, New Zealand and Fiji. Indonesia recorded...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Foreign Direct Investment Essay
  • Foreign Direct Investments Essay
  • Foreign Direct Investment in India Essay
  • Foreign Direct Investment in Ireland: Essay
  • Foreign Direct Investment in India Essay
  • Foreign Direct Investment in China Essay
  • Economics: Foreign Direct Investment Essay
  • Foreign Direct Investment in Nepal Essay

Become a StudyMode Member

Sign Up - It's Free