State Official Reacts to Pepsi Leaving Indonesia



Laila Afifa

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  • TEMPO.CO, JakartaIndustry Ministry’s Director-General of food and beverages Abdul Rochim said that PepsiCo's decision to step out of the Indonesian market will not affect the domestic F&B industry

    “It doesn’t have a significant effect on a macro national scale. The problem that caused Pepsi to exit the Indonesian market is related closely to a business contract termination with their partners,” said Abdul on Thursday, Oct. 3.

    Abdul Rochim said that Pepsi sells its product in a market that is not too significant in Indonesia, as it is sold under products of Non-Alcohol Ready to Drink (NARTD). 

    “It can be confirmed that Pepsi Cola’s exit isn’t due to negative business climate,” said Rochim.

    The domestic beverage industry overall showed positive growth as 2019’s first semester showed 22.74 percent growth, which contributes to 2.01 percent of the non-oil and gas processing industry with a global investment value of US$68.72 million, and the domestic investment value of Rp1.43 trillion. 

    “However, I will specially invite Pepsi to specifically know the problem they faced and see if we can facilitate that,” said the director-general.