Tuesday, 19 January 2016


Although the dry season this year is long than in previous years, the beverage industry sales turnover this year is not higher than the previous year. In addition to the decline in consumer purchasing power, there are some of the beverage industry raw materials that have to be imported. Therefore, the soaring currency exchange rates, including the US dollar, against the rupiah lately caused the growth of the beverage industry to be slower than the previous year.

“Compared to last year, where growth reached 9 percent, this year the beverage industry is estimated to grow between 6 to 7 percent. In addition, the turnover of a number of industries was reportedly not so good this year compared to the previous years, “Director of Beverage and Tobacco Industry of the Ministry of Industry, Faiz Ahmad, told Business News

Of a number of beverage industries, the biggest growth was supported by high growth of the diary industry and bottled water industry. But, it is not so far investment growth. For the food and beverage industry, Faiz explained, both new investment and investment expansion continued to show improvement. Even, investment expansion or new investment is greater than the previous year.

“Like Fonterra dairy products which obtained tax allowance and there is also bottled water industry which will expand its investment, he said. Previously it was reported that PT Fonterra Brands Manufactureing Indonesia (Fonterra Brands) a company that processes milk powder and condensed milk made an investment of USD 29.60 million in Bekasi, West Java. The expansion is intended for the production of various types of milk, Indonesia is still considered to be a magnet for global businesses to invest and for investment. One of the businesses that remain ‘glorious’ is the food and beverage business. In addition to being sustained by total population of 250 million people, it is also because the national business climate is conducive and friendly to investors.

Some time ago, Minister of Industry, Saleh lines of Coca-Cola Amatil Indonesia (CCAI) in Cikedokan, Bekasi, which is also location of the new factory in MM 2100 Industrial Area. Currently, the plant which is located on an area of 10 ha has five production lines for carbonated beverages, juices, and isotonic drinks. Saleh said that the company has committed to increase its investment in stages up to an equivalent of USD 500 million in the next few years.

Until 2014 CCAI investment value has reached USD 90 million, with soft drink production capacity of 67.7 million liters/year. Direct labor absorption is 12,000 people, not including indirect labor, such as agents and retailers. Director General of Agro Industry of the Ministry of Industry, Panggah Susanto, added that with the addition of this new line, it is estimated that there will be an additional production of 200 million liters for the production of bottled carbonated beverages, ready to drink tea, bottled water and fruit drinks. The addition of the new line absorbs 180 new workers.

Meanwhile, PT Oasis Waters International, which is located in Tanah Abang, Jakarta has recently stated to add investment up to IDR 1.4 trillion. The details are in 2011 - 2015 investment value is worth IDR 1.1 trillion, and in 2016 is ready to pour another IDR 300 billion investment fund.

According to Industry Minister, Saleh Husin, the company will build another factory owned by Oasis located in Semarang, Central Java, and be ready to operate in 2016. The company also uses other funds partly to strengthen the distribution chain to the consumer level. The company targeted to become the second largest producer of bottled water next year, with the ambition of increasing market share from the previous 13 percent to 20 percent, said Oasis Chairman, Alfi Gunawan. Efforts are made through the addition of networks and markets to all regions. Until now, 80 per cent of Oasis production distribution is still focused in Java.

Besides being engaged in the drinking water industry, the company is also considering to develop drinking water business other than bottled water business. According to Director of Oasis Waters International, Nathaniel Gunawan, the company is exploring product diversification that will generate tea of coffee drinks. The managers of the company are also determined to make Oasis a national brand.

Currently, we establish factories in Bali, Surabaya and Palembang. Next year we want to strengthen position in Semarang. After that we started to increase our share and brand outside Java. With the strength of the five plants to be operating in the future, it is expected that Oasis could produce many variants of bottled water products with a total capacity of 1.5 billion liters per year, “he explained. ()

Business New - September 30, 2015

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