Pepsi announces that it will leave Indonesia
JAKARTA - Pepsi, a soft drink brand, will leave Indonesia. A PepsiCo spokesman said that his party had terminated its production cooperation contract with PT Anugerah Indofood Barokah Makmur (AIBM) in Indonesia. Both companies agreed to stop production on 10 October 2019.
"AIBM will no longer produce, sell or distribute beverages for PepsiCo in Indonesia. AIBM and PepsiCo have informed our customers and employees about this policy, "PepsiCo said in an e-mail quoted by Tempo.co.
Nevertheless, the management of PepsiCo did not explain the main reason PepsiCo and AIBM stopped the cooperation. It is only mentioned that the New York-based company hopes to return to Indonesia in the future.
PepsiCo also did not explain the fate of its employees and the supply chain affected by the policy.
Thus, brands such as Pepsi, Mirinda, and 7Up will not circulate anymore in Indonesia in the near future.
During this time, the production, distribution, and sales of PepsiCo brands in Indonesia are controlled by AIBM, the majority of whose shares are owned by PT Indofood CBP Sukses Makmur Tbk. (ICBP). Initially, AIBM was a joint venture between ICBP and Asahi Group Holdings Ltd., before Asahi decided to relinquish its ownership. (LK/AR)