Jakarta. The newly established Indonesian Bottled Water Business Association (AMDATARA) seeks to bring progress to the industry.

AMDATARA aims to unite players in the bottled drinking water industry to jointly address challenges and build a healthier future for the people. The association has also named Karyanto Wibowo as its chairman.

"As chairman, I am confident that AMDATARA will be a catalyst for the advancement of the bottled drinking water industry, with a focus on collaboration, integrity, and sustainability," Karyanto said.

Aside from a solid collaboration, AMDATARA will ensure regulatory compliance, and encourage innovation to maintain product quality and contribute positively to the environment and society. This association, which came to existence mid-December, also provided space for collaboration between its members and policymakers. It also promotes healthy hydration among the public, while addressing issues related to water resources and packaging management. Other key areas include Indonesia National Standard (SNI) certifications and investment promotion. AMDATARA also pledges to back industrial transformation, implementation of environmentally friendly technologies, and cross-sector synergy for national economic growth.

The association’s members span across the archipelago, including North Sumatra, West Sumatra, Bengkulu, Lampung, Banten, Jakarta, West Java, Central Java, East Java, Bali, North Sulawesi, among others.

The Industry Ministry hopes that AMDATARA can play a strategic role in connecting the synergized bottled water industry players with government policies.

“I hope that through consistent collaboration, we can drive the transformation towards a sustainable, competitive industry that benefits the community,” Merrijantij Punguan Pintaria, the director for beverages at the Industry Ministry, said.

According to Merrijantij, the bottled water industry has multiplier effects as it provides economic boon for other sectors such as transportation services, retail sales, among others. Merrijantij said: “We want to thank the industry players who have played a role in developing the beverage sector.”

The bottled water industry in Indonesia is currently experiencing significant expansion, with a market value reaching tens of trillions of rupiah per year and an average annual growth of 5-8 percent. Back in 1973, Indonesia only had one bottled water factory with a capacity of 6 million liters per year. Fast forward to the present time, there are 707 factories with more than 2,000 brands, and a total production capacity of up to 47 billion liters per year.

This sector directly employs up to 46,000 workers and contributes to food and beverage exports, with a utilization rate above 70% for the past five years.

Population growth, urbanization, lifestyle changes, and public health awareness have made bottled water as a primary solution for safe and hygienic hydration. This includes the mineral water, natural mineral water, and demineralized water segments, in accordance with the food regulatory agency BPOM’s regulations. 

However, the challenges facing the bottled water industry have become increasingly complex. This ranges from the mandatory SNI, public perception regarding water resource management, BPA packaging regulations, inconsistencies between central and regional regulations to packaging waste management. Implementation of inclusive extended producer responsibility, water taxes, as well as intense market competition, are also some of the challenges. The industry now has to adapt to trends such as circular economy, digitalization, halal certification.

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