Coca-Cola Amatil's Shares Soar After Coke Uses The Australian Company To Invest Big In Indonesia

A toy vendor in Indonesia. Ulet Ifansasti/Getty Images

The main Coca-Cola Company in the US is using Australia’s Coca-Cola Amatil to help capture the lucrative exploding middle class market in Indonesia.

The Coca-Cola Company will invest US$500 million into CCAI, a subsidiary of Coca-Cola Amatil, in return for an equity ownership interest of 29.4%.

The investment will support the accelerated expansion of production, warehousing and cold drink infrastructure in Indonesia.

Coca-Cola Amatil’s shares jumped more than 5% to $9.15 on the news.

Alison Watkins, Coca-Cola Amatil Group Managing Director, says Indonesia is a key growth market with a population of more than 240 million and a fast-growing emerging middle class.

There are more than 70 million middle class and affluent consumers in Indonesia, according to Boston Consulting.

This group is expected to increase to 141 million by 2020.

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