TEMPO.CO, Jakarta – Food and beverage producers, including beverage producer giant Coca-Cola, have continued to invest in Indonesia.

“The consumption sector has been the backbone of our economy. This is the reason of aggressive foreign investment in Indonesia. Global companies are optimistic with their business in Indonesia,” Industry Ministry Saleh Husin said in a press release received by Tempo on Tuesday, March 31, 2015.

Saleh’s statement referred to the Tuesday inauguration of Coca-Cola Amatil Indonesia’s factory in Bekasi.

According to Saleh, the country’s large population has been the main reason for investments in the food and beverage business. In addition, Indonesia has successfully preserved its national investment climate.

In January-September 2014, Saleh said, the domestic investment in the food and beverage industry had reached Rp13.93 trillion (US$1.1 billion), increasing by 7.95 percent compared to the previous year. The investment in the food and beverage industry accounted for 33.3 percent of the total domestic investment in industries.

Moreover, foreign investments in industries in the same period reached US$2.54 billion, soaring by 71.34 percent compared to the previous period. The investment in the food and beverage industry accounted for 25.09 percent of the total foreign investment in Indonesia.

The lucrative food and beverage industry in Indonesia has encouraged Coca-Cola Amatil Indonesia to build two production facilities in Bekasi. Saleh hoped this would boost the national beverage production in the coming years.

Coca-Cola said that the new production facilities were the realization of its investment commitment in Indonesia. The US-based company has also prepared US$500 million worth of investment for production expansion and human resources development.

"The US$500 million investment signifies our belief in Indonesia. We believe that by creating employment opportunities and local labor absorption, we can boost the country’s economic growth,” Muhtar Kent, the chairman and CEO of the Coca-Cola Company, said.

In 2014, CCAI had increased its investment to US$90 million with production capacity of 67.7 million liters per year and absorbed about 12,000 laborers.

AMIRULLAH