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T Multi Bintang Indonesia, maker of the well-known Bintang Beer, will next month launch operations at its new Rp 201.72 billion (US$17.08 million) factory in Sampang Agung, Mojokerto regency, East Java.

The factory, which will be Multi Bintang'€™s third facility, is expected to produce 50 million liters of carbonated soft drinks each year.

The new factory aimed to meet surging domestic demand, due to the growing population as well as a higher number of foreign tourists, Multi Bintang president commissioner Cosmas Batubara said Wednesday.

'€œDomestic [beverage] sales have risen by more than 10 percent each year and we want to meet the market demand that is expanding rapidly,'€ he said.

The company also intended to tap into the foreign market, given the fact that its beverages had become increasingly popular in countries such as Australia, Japan and South Korea, Cosmas said.

Driven by Indonesia'€™s growing middle class and stronger purchasing power, the soft-drinks industry in Southeast Asia'€™s largest economy has expanded rapidly in recent years. It grew by 11 percent last year, following 8 percent growth in 2012.

The carbonated soft-drink sector has grown by an average 2.6 percent annually. Still, on a per capita basis, soft-drink consumption in Indonesia remains far lower than in some of its neighboring countries.

Indonesia consumes 2.4 liters of soft drinks per person per year, far less than the 34.12 liters in the Philippines, 32.23 liters in Thailand, 31.36 liters in Singapore and 18.96 liters in Malaysia.

Therefore, there is still tremendous room for growth in the world'€™s fourth most-populous nation with more than 240 million people.

The robust overall demand for beverages has boosted the business of companies like Multi Bintang, which produces both alcoholic and non-alcoholic drinks under various brands, including Bintang Beer, Heineken, Bintang Zero and Green Sands.

Publicly listed Multi Bintang saw its net profits jump significantly by 158.08 percent to Rp 1.17 trillion last year, driven by a marked increase in its revenue by 126.75 percent to Rp 3.56 trillion.

Cosmas said the firm may seek to expand its production capacity in alcoholic drinks, in line with market demand, but he declined to elaborate further.

Multi Bintang'€™s new factory will help boost its current production capacity of 65 million liters of beverages at its soft-drinks factory in Tangerang, Banten and brewery in Sampang Agung.

The alcoholic beverage industry was previously limited to foreign direct investment (FDI), while production was subject to a quota set by the government. However, the government recently revised its negative investment list, easing requirements on business expansion by existing alcoholic-drink makers.

Industry Minister MS Hidayat said that his office was finalizing a supporting regulation to govern the implementation of the new rule.

Due to the vast opportunities in the alcoholic-drink industry, enabled by the robust growth in tourism, some global players such as Diageo, the producer of Johnnie Walker and Jack Daniel'€™s whiskies, have expressed an interest in establishing a presence in Indonesia.