Indonesia’s Ministry of Industry promotes the development of the fruit processing industry, including the production of juices and beverages. This is in line with its downstream industry policy to add value of domestic commodities as well as to support the import substitution program.
The Director General of Agro Industry, Putu Juli Ardika said that Indonesia, as a tropical country, has great potential in developing industries that utilise raw fruits as materials such as fruit juice drinks, canned fruit products, candied fruit, jams and others. Putu stated, “Indonesia is 8th largest fresh fruit producing countries in the world with production reaching 24.9 million tonnes per year.”
With abundant availability of fresh fruits, the fruit processing industry has ample room for further development. As such, the opportunities for the upstream sector need to be optimised by encouraging the growth of the intermediate and downstream industries. Putu emphasised the need to strengthen the role of the intermediate industry that produces fruit concentrate or puree as a producer of raw materials for the downstream industry.
There are 6 fruit processing industries in Indonesia of between small and medium scale with a total production capacity of 5,500 tonnes per year. Meanwhile, in the downstream sector, there are 41 companies with a total production capacity of 430,000 tonnes per year, contributing total export value of US$280 million.
Indonesia aims to curtail imports of intermediate products via boosting the quality of local fresh fruits and increasing productivity in the upstream sector, as well promote capacity building for the intermediate industry, including empowering the role of cooperatives as partners in the fruit processing industry.
According to the ministry, a number of strategic steps will be undertaken to improve the performance of the fruit processing industry and these include ensuring steady productivity and supply of materials; improving logistics and other infrastructures to ensure optimal costs, and post-harvest infrastructures like cold-storage, packaging and fresh fruit store. The ministry also encouraged the industry to adopt digital technology in line with ‘Making Indonesia 4.0’ roadmap in which the F&B industry is identified as one of the key priorities.
PT Ultrajaya Milk Industry & Trading Co. is one company that has taken advantage of Industry 4.0 to increase its productivity and boost hygiene standards at its UHT technology plant where fruit juice drinks are packed aseptically and no longer require preservatives.
Statista estimated that the Fresh Fruits segment in Indonesia alone contributed US$20.53 billion to the industry revenue in 2021. Meanwhile, revenue for the downstream activities like the processed and frozen fruit segments are expected to reach US$1.244 billion in 2022 with a CAGR of 5.8%, while the fruit juice industry generated US$709 million with a CAGR of 5.68% in the next 5 years.