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In 1932,more than 80 years ago, Coca-Cola was produced for the first time in
Indonesia. Since then, The Coca-Cola System has made important contributions to
the development of the country as an employer, investor, and caring member of
the community. We are proud of our heritage in Indonesia, and are very optimistic
about the future of the country, our industry and our business,driving us to
confirm, one more time, our unyielding commitment to Indonesia for the long term.
Our sustainability philosophy is anchored on our heritage, and the firm belief that
we rely on strong communities to have a strong business.Our responsibility to the
communities in which we operate includes the unsurpassed quality of our products,
our responsible marketing philosophy, our manufactunng environmental practices,
and the contributions we make to education, healthy-active living, women
economic empowerment, water replenishment, and clean water and sanitation
access.
This tremendous commitment is not only our history, it is our present and our
future. Over the past 2 years, the system has invested over US$ 300 million in
capital. CCA's Managing Director, Terry Davis, indicated to the Australian Securities
Exchange on the 19th February, 2013that "A mark of our confidence in Indonesia is
that we intend to progressively increase our investments there by nearly half a
billion dollars over the next 3-4 years." Muhtar Kent, CEO of The Coca-Cola
Company has expressed that "Indonesia is a critical market for our company as we
continue our journey to 2020".
Our Operations 03
Coca-ColaToday 04
SalesOperations 08
Water Stewardship 11
WasteManagement 12
Women Empowerment 13
Community Empowerment 14
Work Place 18
ResponsibleMarketing 21
1985
Indonesia Independence Day Coca-Cola
1973
1956 Fanta introduced
in Indonesia
1927
Coca-Cola is sold the first time in Indonesia
1977
Commercial Product Supply (CPS)
1971
Djaja Beverage Bottling
Company restarted production
after the revolutionary era
1932 in 1960$ and introduced Sprite
2011
Introduced Ades
in lightweight packaging
2002
Frestea introduced in Indonesia
Local bottled water Ades , acquired
1996
Coca-Cola started
1986 its first production
in plastic bottles (PET)
Diet Coke introduced,
marking the first product
in cans in Indonesia
02
OUR OPERATIONS
10 Bottling Plant Locations: Medan, Padang, Lampung, Bekasi, Cikedokan, Bandung, Semarang, Surabaya, Denpasar, Manado
BRAND AND PRODUCT PORTOFOLIO
•
We now produce and market 6 ready to drink categories with 14brands.
SPARKLINGBEVERAGESCATEGORY
-
STILLBEVERAGESCATEGORY(TEA,JUICE,ISOTONIC)
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WATERCATEGORY ENERGYDRINKCATEGORY
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COCA-COLA AMATIL
INDONESIA
Coca-ColaAmatil Indonesia CCCAI)is a leading CCA has operations in six countries - Australia,
manufacturer and distributor of non-alcoholic New Zealand,Fiji, Indonesia,PapuaNew Guinea
ready to drink beveragesand has been operating and Samoa and has a rich and diverse history
in Indonesia since 1992. It manufactures and spanningover 100 yearsof operations.
distributes under license, the trade market
products of the Coca-ColaCompany. CCAI employs over 8,000 Indonesiannationals
on a permanent basis and between 2,000 to
CCAI'shead office is in Sydney,Australia,and the 4,000 temporary staffs dependent on
Company is listed on the Australian Securities seasonality across the country. A significant
Exchange.With a market capitalization of over number of external parties made up of
US$ 10.2billion, Coca-ColaAmatil CCCA),CCAI's customers,suppliers and service providers also
parent company, is one of Australia's 'Top-20' derive their income from trading with CCAI.
listed companies.
CCAI currently has 9 manufacturing plants
CCA is one of the largest bottlers of non-alcoholic acrossIndonesia;Cibitung, Cikedokan,Bandung,
ready to drink beverages in the Asia-Pacific Semarang,Surabaya,Bali, Medan, Padang,and
Region and one of the world's top 5 Coca-Cola Lampung and operates with over 100
bottlers. CCA employs nearly 16,000 people and Distribution Centers across Indonesia. For
has access to more than 270 million consumers sourcing raw materials,servicesand non product
through over 690,000 active customers. related items CCAI has over 2,500 suppliers
within its supply chain.
CCAI has invested more than US$ 155million As a system, we will be investing over US$
in Indonesia in 2012,and expects to increase 200 million of marketing expenditure over the
investments in Indonesia by nearly half a next 3-4 years and as the market grows, our
billion dollars over the next 3-4 years. strategy will focus on creating economic and
Investments have largely been directed to employment opportunities across our supply
infrastructure and capacity building and chain, investing in infrastructure, innovation,
increased support for our retailers through and promoting sustainable communities
cold drink equipments. everywhere we operate.
I MARKETING
• ACTIVITIES
Marketing activities are our way to speak to our consumers. With missions to refresh the world and
inspire moments of happiness and optimism, we are connecting with our consumers in a creative,
fun, and responsible way.
I
SALES OPERATIONS
MARKET SHARE
Coca-Cola is the market leader in Carbonated
Beverages and Fruit Juices, it has a strong
presence in the Ready to Drink Tea category.
CUSTOMERS AND
DISTRIBUTIONS
PRODUCT QUALITY
We consider the consistent high quality of our
beveragesto be one of our businessesp ' rimary
assets. In each country where we produce our
beverages,the Coca Cola system adheres not
only to national laws on food processingand
labelling, but also to our own higher strict
standardsfor exceptionalquality.
WASTE WATER MANAGEMENT
& REDUCED CARBON
in everything we do, from the selection of
FOOTPRINT
ingredientsto the production of our beverages
and their delivery to the marketplace,we use Our global goal is to safely return to
our specialised quality management system, communities and nature the amount of water
The Coca Cola Quality System,to ensurethat equivalent to what we use in all of our
we are offering consumers only the highest beveragesand their production by 2020. In all
quality products. of our factories, we ensure that 100% of the
wastewaterfrom our manufacturingoperations
We alsoinvestedin establishingstate-of-the-art is treated so stringently that the water can be
quality assurancelaboratories in each plant to returned to nature at a level that supports
ensure that all of our products are up to aquatic life.
requiredstandards.
We also invested in a technology called
All of our products have been HalalCertified.In "blow-fill" which enables us to redesign and
Indonesia, Coca-Cola products are locally lightweight its entire carbonatedsoft drinksand
produced and have obtained halal certificates water PET bottle range. Crucially, blow-fill is
delivering against key sustainability goals in
both energy and water, enabling bottles to be
PRODUCTION LINES produced using less PET resin, or with more
CCAI has a total of 35 production lines in 9 recycled(post-consumer)resin.
plants across Indonesia. BWBC has 2
production linesin its NorthernSulawesiPlant.
COMMITMENT
I TO CORPORATE
SUSTAI NABI LlTY
SOCIAL RESPONSIBILITY
THE WORLD WE ME
Respondingto the complex issueof malnutrition Sindang Pakuwon is located within the
in urban poor settlements, in 2011partnered with sub-watershed of Citarum and two main issues
Mercy Corps, implemented an integrated water identified in this community is the lack of clean
and sanitation program. The program has bene- water accessas well as sanitation facilities. Clean
fited 514 households with access to improved water system: a 3.3 kms gravity based clean
sanitation facilities; 1,158households have access water system was constructed to supply clean
to improved water facilities; and 942 school water to approximately 800 households or
children have access to hand-washing facilities. about 4,000 individuals.
In addition, community-based sludge removal
services (called 'Kedoteng') supporting Two communal septic tanks (CST) were
improved sanitation was implemented to cover constructed in the village to serve about 80
2,000 households with service.Total funding for households. Total funding for this project is
this project is around US$ 268,000. around US$100,000.
I~~~:"~,' ~~~o:~,~ ~O~'~~~"P people 10 rmrurruze their
waste and create economic opportunities in doing so. With a growing population and poor waste
managementcontrols acrossthe country,it was up to the industry to work with the government,local
communitiesand industry groups to protect the very sourceof existence.
in
collaboration with Quiksilver Indonesia,started
the Bali Beach Clean Up (BBCU) program, to
reduce rubbish In Bali's coastal areas,
strengthens Indonesia's tourism industry, and
enhancerelationshipwith the local community.
POLYCLINIC
In an effort to keep employees fit and healthy,
+
CCAI has a polyclinic service in each
manufacturing plant. Eachyear, it offers medical
support program for more than 8,000 staffs and
25,000 staff dependents,as well as community
members surrounding our plants. This initiative
has been CCAI's longest running CSR
contribution to the community.
ZONE-l PROGRAM
Our Zone 1program focuseson nurturing the relationshipwith those communitiesthat directly touch
our manufacturing boarders. This involves activities that support their daily life such as providing
water,support for community and religiouseventsand basic medical needs.
COKE FARM
CokeFarmwasestablishedto convert idle landaround
our manufacturingfacilitiesinto productiveagricultural
landand generateincomefor farmersto improvetheir
economicbenefits.Locatedin and aroundour plantsin
Bandung,Semarang,and Lampung,CCAIcooperated
with expertsfrom non-profit organizationsin providing
trainings and assistancefor our farmers to further
advancetheir agriculturalskills. We also recycledtea
waste from the manufacturing process. With Coke
Farm, we continue to develop a model that help
improve community wealth opportunities and
promotesbehaviorto carefor our environment.
~
~
LIBRARY PROGRAMS ~M !lOundotWn
LEARNING LOUNGE PROJECT !7m1omaia
Learning Lounge was developed in partnership with Dewi Hughes International Foundation
(DHIF). The Lounge is specially designed to provide a modern welcoming space at malls for
urban youth to gather as a center for positive learning activities. It is equipped with books and
IT facilities providing a variety of information which is relevant to young people, such as
environment, healthy active living, skills building and inspirational materials. We have built 3
Learning Lounges in PlazaSemanggi, Istana Plaza Bandung and WTC MatahariSerpong.
PERPUSERU PROJECT
A nation-wide library development project in partnering with Bill and Melinda Gates
Foundation focuses on providing access to Information Technology hardware and software,
library staff training courses,and advocacy development at 40 district public libraries across
Indonesia.
SCHOLARSHIP PROGRAMS
VOCATIONAL STUDY
SCHOLARSHIP
REGULAR STUDY SCHOLARSHIP
Following the successof 2011Vocational Study
Scholarship program where 28 students in 3 Since 2008, Coca-Cola Foundation Indonesia
institutions were supported, CC with the has provided financial support to a number of
support of TCC Foundation expanded the promising higher education students having
program where it supports 52 students in 6 financial difficulties to support their study.
different institutions. The program is aimed at Annually CCFI provided scholarship to 40
supporting the creation of workforce that are students in 3 leading universities.Through CCFI
ready to contribute directly once they graduate scholarship program, Coca-Cola System in
from their study. The target of the program will Indonesia is enhancing its contribution to the
be students who excel in their study but having betterment of Indonesian society, taking a
difficulty financiallyto support their education. pro-active stance to fulfill its objective of
Aside from supporting the tuition, the program elevating the human resource quality of
also support students' development through Indonesia,as well as providing opportunity for
supporting life-skilltraining in Englishlanguage the qualified students to be recognized as
that will help them in their future employment. potential candidatefor the System'srecruitment
program.
I
WORK PLACE
One of our primary objectives is to maintain a well-managed and desired working
environment. We believe work should be a place of exploration, creativity and professional
growth-a place where people are inspired and motivated to achieve extraordinary results.
That is why People Development has been one of the central focuses of our management to
prepare a competent, dynamic and dedicated work force. Our goal is to provide an excellent
and satisfying service to our hundred of thousands customers.
COMPETENCY DEVELOPMENT
We believe that good competency will
support the businessperformanceas a whole
by clarifying what's expected, as well as how
to develop and measure it. Competency
becomes the anchor of our employee
development on building knowledge, skill,
and behaviour required in a particular role.
NATIONAL GRADUATE
TRAINEE PROGRAM
For that reason, we feel the importance of
CCAI has also been operating a National keeping all our employeeswell informed. Our
Graduate Trainee Program. Over 300 internal 'monthly' company magazine
participants have joined CCAI through this Antarkita won the award for Best Internal
program which is targeted at building the Magazine from the Indonesian Press
capability of its middle management layers Associationfor 2012.
and future company leaders. We determine
development consists of 70% on the job Also, as part of our commitment to people
experience, 20% exposure (case studies, development, within year 2012, we have
coaching, role models and mentoring) 10% conducted around 19,403 Training Days for
attending courses. employees.
recognize the health of our business is interwoven with the health and well-being of our consumers,
our associates and the communities where we operate. We do this by promoting active healthy living
programs to the communities that we serve through marketing and community programs that inspire
people to get active.
PIALA COCA-COLA
Piala Coca-Cola (PCC) is an annual football competition for high school students. It was first held in
2005 in greater jakarta area, and then it was expanded to Bandung city in 2007 and to Surabaya in
2009.Piala Coca-Cola has helped high school students to channel and showcase their talents in
football. Up to 2011,more than 19,040 high school students have participated in PialaCoca-Cola and
among them were Egi Melgiansyah and Dedi Kusnendar, now playas professional footballers in
national team.
In 2012,PialaCoca-Colaexpanded its scope by engaging 640 schools that comprises of 720 games in
20 cities. In 2013,we will expand this initiative to 2,000 schools in 30 cities around Indonesia,
engaging more than 32,000 high school students.
COKE KICKS
CCAI started "Coke Kicks" as its first soccer
development program in 2011.Partner up with
Asian Soccer Academy (ASA) Foundation, we
provide opportunities for local community
children to receive professional soccer training
and create moments of fun. Using sport as a
tool to promote active healthy living, this grass
roots soccer program has involved 6,149
children in 140 villages across Indonesia.
SURFING
Indonesia has the best surfing sites in the world.
It only seems sensible to promote active healthy
living by leveraging Indonesia'sbeautiful assets.
In 2010, Coca-Cola Indonesia is the first company in the beverage industry in Indonesia to
implement this initiative. By end of 2012,all of our products already havecalorie information on
the front packs.
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