PHOTO
A case of Pepsi Cola is shown in this photo illustration in Encinitas, California October 10, 2013. Pepsi Co Inc will report 3rd quarter earnings October 16. REUTERS/Mike Blake (UNITED STATES - Tags: BUSINESS) - RTX14BYF Image used for illustrative purpose.
U.S. food and beverage maker PepsiCo began building a snack factory in Indonesia's West Java on Wednesday, marking its return to Southeast Asia's largest economy after splitting with a local partner two years ago.
The factory, part of PepsiCo's $200 million commitment to invest in Indonesia over a 10-year period, is expected to start producing snacks by 2025.
PepsiCo's affiliate Fritolay Netherlands Holding B.V. and Indofood CBP, a unit of Indonesia's largest food company Indofood Group, ended a 30-year joint venture in 2021 without providing any reason, when Indofood bought PepsiCo's minority stake.
The JV at the time had manufactured a range of snacks under brands like Lay's, Cheetos and Doritos.
Building the new factory without a local partner, PepsiCo pledged to source most raw materials for its snacks, including corn and palm oil, from sustainable sources and to use renewable power sources. ($1 = 15,255.0000 rupiah) (Reporting by Stefanno Sulaiman; Editing by Gayatri Suroyo and Simon Cameron-Moore)