Coca-Cola plans to close its Bali bottling operation, putting most of its 70 island workers out of jobs as the company reshapes its business, Bali Discovery reported.
What's happening?
The drink company described this as a strategy to remain profitable in the market. Only three workers from the Werdi Bhuwana Village plant took jobs in Jakarta and Surabaya, leaving 52 people unemployed.
"As part of this change, we are optimizing our manufacturing and logistics network to adapt to future business needs," said Lucia Karina, director of public affairs, communications, and sustainability for Coca-Cola Europacific Partners, per Bali Discovery.
The company said fired workers will receive more compensation than required by Indonesian law, with additional payments equivalent to six times their monthly salaries. They'll receive social security for 10 months and help finding new jobs.
This shutdown exacerbates Bali's growing unemployment problem. Hundreds of people, mostly in the tourism sector, already lost their jobs in early 2025.
Why is Coca-Cola's closure concerning?
When big companies such as Coca-Cola exit an area, families lose income, nearby shops receive fewer customers, and local economies suffer. Bali faces additional challenges because it relies heavily on tourism, leaving it vulnerable to global economic fluctuations.
The head of the Department of Industry and Commerce noted that people are buying fewer sodas as they opt for healthier drinks. Bali's upcoming ban on small throwaway plastic bottles (under 1 liter) might have influenced the decision.
While Coca-Cola has made promises about the environment across its operations, including plans to make its packaging completely recyclable and use at least half recycled material in packaging, shutting down plants raises questions about whether money still matters more than the planet's health.
What's being done about corporate environmental responsibility?
Bali is taking action through its planned ban on small single-use plastic containers. This rule could reduce plastic waste on the island. Of the 18 factories producing drink containers in Bali, only two manufacture larger containers that would comply with the new rules.
While Coca-Cola has made progress with its sustainability — such as by using EVs in its delivery fleet — the company still has a lot of room for improvement.
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