One of the largest beverage manufacturers in the world, Pepsico has officially left Indonesia. Pepsico, Inc., will terminate the production contract with PT Anugerah Indofood Barokah Makmur (AIBM) in Indonesia on Oct. 10. It was stated, AIBM would no longer produce, sell or distribute drinks for PepsiCo in Indonesia. The two companies have informed their customers and employees about this policy. Thus, beverage brands such as Pepsi, Mirinda, 7Up, and Mountain Dew will certainly not circulate again in Indonesia in the near future.

During this time, the production, distribution and sale of PepsiCo’ beverage brand in Indonesia is controlled by AIBM, the majority of whose shares are owned by Indofood CBP Sukses Makmur (ICBP). Initially, AIBM was a joint venture between ICBP and Japan’ Asahi Group Holdings Ltd., before decided to relinquish its ownership.

Two fast food companies in Indonesia, Pizza Hut and Kentucky Fried Chicken also terminated the cooperation contract with the carbonated beverage provider starting Oct. 1, 2019.

Quoting from local media, director at the industry ministry Abdul Rochim stressed that the withdrawal of Pepsico from Indonesia was not because the un-conducive business climate in Indonesia, but purely due to business problems.