PepsiCo returns to Indonesia, breaks ground for snack factory

US FOOD and beverage maker PepsiCo began building a snack factory in Indonesia’s West Java on Wednesday (Aug 30), marking its return to South-east Asia’s largest economy after splitting with a local partner two years ago.

The factory, part of PepsiCo’s US$200 million commitment to invest in Indonesia over a 10-year period, is expected to start producing snacks by 2025.

PepsiCo’s affiliate Fritolay Netherlands Holding BV and Indofood CBP, a unit of Indonesia’s largest food company Indofood Group, ended a 30-year joint venture (JV) in 2021 without providing any reason, when Indofood bought PepsiCo’s minority stake.

The JV at the time had manufactured a range of snacks under brands such as Lay’s, Cheetos and Doritos.

Building the new factory without a local partner, PepsiCo pledged to source most raw materials for its snacks, including corn and palm oil, from sustainable sources and to use renewable power sources. REUTERS