PepsiCo to Re-Enter Indonesian Markets after Two Years

PepsiCo, the world's largest food and beverage company, began constructing a snack factory in West Java, Indonesia, on Aug 30, marking its return to Southeast Asia's largest economy after splitting with a local partner two years ago.

The factory, which is part of PepsiCo's $200 million investment in Indonesia over a 10-year period, is expected to begin producing snacks in 2025.

When Indofood bought PepsiCo's minority stake in 2021, 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 without giving any reason.

At the time, the JV produced a variety of snacks under brands such as Lay's, Cheetos, and Doritos.

PepsiCo pledged to source the majority of raw materials for its snacks, including corn and palm oil, from sustainable sources and to use renewable energy sources while building the new factory without a local partner.