In terms of the national macro level, the impact is not too large. The problem that caused Pepsi to leave Indonesia is more related to the termination of business contracts from its partnersJakarta (ANTARA) - The exit of PepsiCo from Indonesia will not affect the domestic beverage industry, the Industry Ministry's Director General of Food and Beverage Industry, Abdul Rochim has reassured.
"In terms of the national macro level, the impact is not too large. The problem that caused Pepsi to leave Indonesia is more related to the termination of business contracts from its partners," Rochim said Thursday. Pepsi's market share in the Non-Alcohol Ready to Drink (NARTD) segment in Indonesia is not as big as its competitors for similar products, Rochim explained.
"So it is certain that the exit of Pepsi Cola is not from the unfavorable business climate in the country," Rochim stated.
The current data shows that overall the growth of the beverage industry is still positive, according to him.
The beverage industry in the first semester of 2019 showed a growth of 22.74 percent, which contributed 2.01 percent to the non-oil processing industry with a foreign investment value of US$68.72 million and investment of domestic investment in the amount of Rp1.43 trillion.
Investment in the beverage industry sector in the first semester of 2019 reached Rp1429.74 billion for domestic investment and US$68.72 million in foreign direct investment.
"Specifically for NARTD growth in Indonesia, the decline is not too large (in August 2019 by -0.7 percent) due to the decline in sales in traditional markets. As for retail and modern markets, it has increased," Rochim emphasized.
The government will continue to facilitate the problems that arise, such as those in Pepsi Cola, so that solutions can be found, Rochim stressed.
Nevertheless, Rochim hoped that the brand could return to the Indonesian market to add variety to the existing soft drink products.
"I will invite (a representative from) Pepsi to find out for sure the problem (of its leaving) and whether it can be facilitated," Rochim said.
PepsiCo, a carbonated soft drink manufacturer headquartered in the United States, has officially stated that it no longer sells its products in Indonesia.
Such a measure was taken after PepsiCo decided to end its agreement with Indonesia's company, PT Anugerah Indofood Barokah Makmur (AIBM), which will be effective from October 10, 2019.
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Translator: Sella Panduarsa Gareta/Yashint
Editor: Sri Haryati
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