Tirta Jati targets market growth, production independence in drinking water industry
AMDK air minum - image source: industry.co.id
Cirebon Regency-owned tap water company Tirta Jati is striving for market growth and production independence amidst the booming product of Packaged Drinking Water (AMDK) from various brands, targeting strengthened presence in the local market.
In a relatively short time, the drinking water product, AMDK Tirta Jati, has reached sales figures of 8 to 10 thousand boxes per month and is increasingly accepted by the community, including government agencies.
President Director of Tirta Jati, Suharyadi, said that the market potential of drinking water is still wide open.
"We are here not only to compete, but to provide an alternative quality drinking water produced from the region, by the region, for the local community," he said on Sunday, April 6, 2025.
AMDK Tirta Jati is produced in various packaging variants ranging from 200 milliliter (ml) cups to 600 ml bottles. Although it does not yet have an independent factory and laboratory, Tirta Jati continues to strive to strengthen the competitiveness of this local product.
As part of the plan, Tirta Jati is preparing to build its own AMDK factory and laboratory, as part of a long-term strategy towards production independence. The investment required is estimated to reach Rp20 billion (US$1.18 million), which will be coordinated with the Cirebon Regency Administration.
"This independent factory and lab are not just about production. This is a symbol of independence and regional pride. We want Cirebon to have its own drinking water product that can compete healthily and sustainably," Suharyadi said.
According to Kontan, the drinking water business is considered to be able to skyrocket in Indonesia often with population growth and the rise of the middle class. Meanwhile, demand is also increasing at a time when urbanization rates are increasing and access to clean water is increasingly difficult due to damaged groundwater.
Statista stated that the drinking water market in Indonesia in 2022 will be the 4th largest in the world with a value of US$10.24 billion, this figure continues to grow 26.5 percent in the next five years to US$12.95 billion.
According to Management and Innovation Consultant, Indrawan Nugroho, currently there are 900 drinking water companies in Indonesia with 2,000 brands working on the market of massive business competition in an industry worth trillions of rupiah.
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