This facility is expected to begin producing snacks by 2025. Credit: Jonathan Weiss/Shutterstock.com.

US-based food, snack, and beverage corporation PepsiCo has announced the commencement of construction of a snack factory in West Java, Indonesia.

This project marks the company’s return to the country following its exit from the Indonesian snack market.

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Covering an area of 60,000m², the facility is expected to create a substantial number of job opportunities for Indonesians, reported Jakarta Globe.

Besides this, PepsiCo will employ 100% renewable energy sources and 100% recycled water utilisation while constructing the new facility without a local partner.

The new facility is expected to begin production by 2025. It is part of PepsiCo’s $200m investment in Indonesia over the course of ten years.

Indonesia’s Minister of Investment and Indonesian Investment Coordinating Board (BKPM) chairman Bahlil Lahadalia was quoted by CNBC Indonesia as saying: “We appreciate PepsiCo’s long-term commitment to Indonesia’s economic growth through this investment which is estimated to reach $200m.

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“We hope that this investment will bring knowledge and technology transfer to the people of Indonesia, as well as provide benefits to the community and work together with local entrepreneurs and the surrounding micro, small and medium enterprises.”

In 2021, the company sold its 49% share in PT Indofood Fritolay Makmur (IFL) for $35.13m to local partner Indofood CBP Sukses Makmur. This concluded a 30-year joint venture (JV).

At the time, the JV produced several kinds of snacks under brand names such as Lay’s, Cheetos, and Doritos.