Food and Beverage Industry Invests IDR 3.3 Trillion

KBRN, Jakarta: The food and beverage industry is one of the strategic sectors that has made a significant contribution to the national economy. There is a great opportunity in developing the domestic food and beverage industry because it is supported by the potential of abundant natural resources and increasing domestic demand. This was conveyed by the Deputy Minister of Industry, Faisol Riza at the inauguration of the PT PepsiCo Indonesia Factory as well as the Launch of New Lay's, Cheetos, and Doritos Products in the Greenland International Industrial Center (GIIC) Industrial Area, Cikarang, West Java, Wednesday (6/18/2025).

"The food and beverage industry in Indonesia continues to show a positive growth trend. Post-Covid-19 pandemic, the GDP of the food and beverage industry was able to grow by 6.04 percent in the first quarter of 2025. This is higher than the growth of the non-oil and gas processing industry GDP of 4.31 percent and the national GDP of 4.87 percent," said Faisol Riza.

Faisol Riza said that the brilliant performance of the food and beverage industry is also reflected in its contribution to the GDP of the non-oil and gas processing industry by 41.15 percent in the first quarter of 2025. In addition, this sector recorded an export value of up to USD11.78 billion (including palm oil).

"This achievement contributed 22.42 percent of the total export value of the non-oil and gas processing industry in the first quarter of 2025," said Faisol.

On the investment side, the food and beverage industry realized its capital of IDR22.64 trillion in early 2025, consisting of PMA of IDR9.03 trillion and PMDN of IDR13.60 trillion. This indicates that food and beverage industry players in Indonesia still have high confidence in running their businesses because they are supported by a conducive business climate.

Therefore, Faisol Riza said, the Ministry of Industry appreciates PT PepsiCo Indonesia for its investment of USD200 million (equivalent to IDR3.3 trillion) in the construction of its first factory in Indonesia. The factory, which began production on January 13, 2025, is equipped with three production lines with an installed capacity of 24,000 tons per year and has absorbed almost 400 workers.

"The presence of this factory not only strengthens the national snack industry, but also creates jobs and encourages import substitution. This also indicates that domestic market opportunities are still very open, and this industrial sector is still very promising," he said.

According to Faisol Riza, the snack market in Indonesia, which is dominated by millennials and Gen Z — which covers 55 percent of the consumer population — is also showing a positive growth trend with a market value reaching USD3.87 billion in 2023 and is projected to grow 8.13 percent (CAGR) until 2029.

Not only focusing on increasing production, the Ministry of Industry also appreciates PepsiCo's initiative in collaborating with 200 potato farmers and 200 corn farmers from West Java and Central Java, which is carried out through a program to develop superior seeds, increase productivity, and empower local farmers.

In addition, PT PepsiCo Indonesia is considered an industry player that has implemented the principle of sustainability, with the use of 100 percent recycled water and renewable electricity in its production process.

"We hope that PT PepsiCo Indonesia will continue to create a positive impact, not only through job creation and increasing added value, but also through its contribution to environmental sustainability and strengthening the local economy," said Faisol.

Faisol is optimistic about the ongoing contribution of PT PepsiCo Indonesia in strengthening the national food and beverage industry and encouraging the growth of a competitive manufacturing sector. "Congratulations on the inauguration of this new factory. Hopefully it will be a trigger for the progress of the food and beverage industry, and bring great benefits to the people of Indonesia," he said.