Jakarta. Sariguna Primatirta, the company behind the CLEO bottled water brand, has allocated Rp 500 billion (approximately $31 million) in capital expenditure for 2025 to support business expansion, including the construction of three new water processing plants across Indonesia.

Once the three new facilities are completed, CLEO will operate a total of 35 factories nationwide, further strengthening its production and distribution network.

CLEO’s Chief Operating Officer, Nio Eko Susilo, said the new plants will be located in Palu (Central Sulawesi), Pontianak (West Kalimantan), and Pekanbaru (Riau).

“We’ve allocated around Rp 200 billion of the total capex specifically for the construction of these three plants. Our overall capex for 2025 stands at approximately Rp 500 billion,” Eko said during a public presentation on Monday.

As of the first quarter of 2025, the company -- owned by Indonesian conglomerate Hermanto Tanoko -- has already utilized 30-40 percent of its capital expenditure, mostly directed toward new factory construction.

The expansion, particularly beyond Java, aims to improve CLEO’s distribution access in underserved regions.

Toto Sucartono, CLEO’s Director of Sales and Distribution, added that the upcoming Pekanbaru facility will enhance distribution coverage in Riau, while the Palu plant will serve Central Sulawesi. Meanwhile, the Pontianak facility will help the company penetrate the West Kalimantan market more effectively.

“Areas such as West Sumatra and Padang will also be a focus for our future distribution development,” Toto noted.

Despite the expansion across the archipelago, Java remains CLEO’s core market. The company is committed to maintaining growth in the region while scaling its national footprint.

With the addition of the three new factories and broader distribution coverage, CLEO is targeting double-digit growth in both sales and net profit for 2025.

This expansion strategy is also a response to the logistical and distribution challenges posed by Indonesia’s geography, which consists of more than 17,000 islands.

“The bottled water industry is highly competitive, with over 1,300 factories and 2,000 brands. But the biggest challenge isn’t competition -- it’s distribution. That’s why we continue building more plants, so consumers across all provinces can access our products more easily,” Toto said.

According to its financial report, CLEO closed fiscal year 2024 with strong performance. Net profit rose by 43.57 percent year-on-year to Rp 465.15 billion ($28.6 million), up from Rp 323.99 billion in 2023. Net sales also jumped 29 percent year-on-year to Rp 2.69 trillion ($165.5 million), compared to Rp 2.09 trillion the previous year.