AMDKAir Minum Dalam Kemasan (Indonesian: Water in Packaging; Indonesia)
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The industry and trade minister issued a regulation toward the end of last year banning producers of non branded drinking water from using branded gallons of AMDK in selling their products to consumers.
The gallons are owned by the consumers although they are marked with AMDK brands.
The tight competition forces producers of AMDK to review and improve their marketing strategies.
PT Tang Mas, also a producer of branded AMDK, said it will focus more on expanding market in the Greater Jakarta area and West Java to be close to the sources of drinking water and to save transport cost.
In early February the price of AMDK cups from factories was Rp 80 per unit up from Rp 50 before.
The 12% increase in the price of cups began to bite on the sales of AMDK in cups.
Sales of AMDK in 240 mi cups in Jakarta and West Java averaged Rp 12.5 billion a month last year.
Medium producers of AMDK are facing pressures from two fronts-large producers with strong foothold such as Aqua and small producers which are more efficient.
Plastic bottles account for 35% of AMDK container, plastic cups for 20%, gallons for 40% and glass bottles for the rest.
Fast growing population added attraction to business in AMDK industry.
The quick recovery of the industry was partly attributable to stable price of plastic bottles at a normal level in the country and the abolition of the luxury sales tax on AMDK. In addition the people are growing aware of the importance of maintaining consumption of hygienic water.
Amid the tight competition there is an initiative to produce cheaper AMDK in the form of refill water available at refilling depots.