F&B plays pivotal role to Indonesian manufacturing exports during 1st half 2020

Latest report showed that Indonesia’s food and beverage industry continued to make the largest contribution to exports in the manufacturing sector, with US$13.73 billion and US$10.87 billion of exports respectively during the 1st half of 2020.
According to its Industry Minister Agus Gumiwang Kartasasmita, “Food and beverage industries registered a high demand during the COVID-19 pandemic. This is because people are looking to consume nutritious food to boost their immunity.”
Indonesia food and beverage industry however is dominated by many small and medium sized enterprises (SMEs).
Kartasasmita asserted that the Ministry is targeting “in line with Making Indonesia 4.0 roadmap”, to make Indonesia food and beverage industry to dominate ASEAN regional market.
The Minister noted that some of Indonesian food and beverage products have already carved substantial share overseas for example, its instant noodles are now popular in African countries.
Indonesia could consider the potential to enlarge export of its RTD tea beverages, snacks, bakery, chocolate and herbal products overseas. There is also a need to look deeper into product diversification to capture more shares in the export markets.
The food and beverage industry contributed US$24.6 billion or 40% out of a total contribution of US$60.76 billion by the manufacturing sector in Indonesia during 1st half 2020. With respect to total exports, the food and beverage industry contributed 32%. As such, the food and beverage industry is a primary and an essential driver for the Indonesian economy.
Kartasasmita said the ministry will encourage its export-oriented industry to boost production capacity to speed up the development of the economy.