PepsiCo marks returns to Indonesia with new snack factory

American food and beverage maker PepsiCo is reportedly marking its return to Indonesia by building a snack factory in Indonesia's West Java. This comes after it split from its local partner two years ago.

The new factory is expected to be completed in 2025 and is part of the brand’s US$200 million commitment to invest in Indonesia over a 10-year period, according to Reuters. PepsiCo has begun building its snack factory in Indonesia’s West Java on 30 August 2023.

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In 2021, PepsiCo's affiliate Fritolay Netherlands Holding B.V. and Indofood CBP, a unit of food company Indofood Group ended their joint venture.

The joint venture saw the production of a variety of snack brands such as Lay’s, Cheetos and Doritos. Unfortunately, it was ended without a reason when Indofood bought PepsiCo's minority stake.

PepsiCo will be building the new factory without a local partner and has pledged to source the bulk of its raw materials such as corn and palm oil from sustainable sources. The brand has also promised that it will be using renewable power sources at the factory.

PepsiCo’s sustainability goals at its upcoming Indonesian snack factory also coincides with its global packaging goal to increase the percentage of its total beverage servings delivered through reusable models from 10% to 20% by 2030.

The pledge was made in response to a shareholder proposal filed by As You Sow, a company promoting corporate responsibility. It asked the company to report on actions it could take to rapidly reduce dependence on single-use plastic packaging, with a suggested focus on setting stronger refillable goals.

In March last year, the company agreed to set a goal by the end of 2022 for a percentage of beverages to be delivered via strategies that avoid or minimise single-use packaging. 

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