Coca-Cola has received board approval for its plans to invest $500m in Coca-Cola Amatil’s (CCA) Indonesian business operations.

Coca-Cola intends to acquire 29.4% stake in CCA Indonesia (CCAI).

The two firms signed an agreement on 30 October for the proposed acquisition.

This investment will be used for the expansion of CCAI’s production, warehousing and cold drink infrastructure.

It is expected to back its long-term growth in the market.

However, the deal is subject to Indonesian regulatory approvals and CCA Non-associated Shareholder approval.

CCAI will also use the investment amount to broaden its product lineup.

Earlier, CCA Group managing director Alison Watkins said: "With a population of more than 240 million and a fast-growing emerging middle class, Indonesia is a key growth market for CCA.

"In partnership with The Coca-Cola Company, we have developed a plan to support upweighted infrastructure and capability development to enable us to strengthen our market position for the long-term and generate returns above the cost of capital for CCAI."

CCAI intends to transform its route-to-market model as part of its strategy to bolster access to the traditional trade and widen its footprint.