Food & Beverage Industry Indonesia: Exports Rising Sharply
Indonesia's exports of processed food and beverage products may surpass the level of USD $8 billion this year, up around 33 percent (y/y) from the realization of USD $6 billion in 2015. Rising food and beverage exports are the result of an improving global economic environment. Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (Gapmmi), informed that Indonesia's rapidly rising processed food and beverage exports are particularly supported by growing demand from other ASEAN countries.
Demand from Association of Southeast Asian Nations (ASEAN) members for Indonesian food and beverage products has surged after the implementation of the ASEAN Economic Community (AEC) at the start of 2016. The AEC creates a single market and production base that allows the free flow of goods, services, investments, and skilled labor, as well as the freer movement of capital across the region. Other markets that also showed rising appetite for Indonesian food and beverage products are those in the United States, Japan and South Korea.
Gappmi Chairman Lukman said rising exports will significantly strengthen Indonesia's processed food and beverage industry, which already constitutes one of the key industries within the Indonesian economy. He added that this industry shows double-digit growth each year and provides employment to millions of Indonesians. In essence, as long as consumers continue to eat and drink, this industry will continue to grow.
Rising food and beverage exports signal that Indonesian producers are able to compete with other food producers and exporters on the global market. However, Lukman says Indonesian producers need to adopt new technology in the process of food and beverage manufacturing. Currently, the manufacturing process in the food and beverage industry is still dependent on inefficient older technology or even "traditional technology".
Recently Indonesia's Gobel Group established a joint venture - called PT Chateraise Gobel Indonesia - with Japan-based food manufacturer Chateraise Holding Co Ltd. Gobel Chief Rachmat Gobel said the joint venture is a great opportunity for Gobel to adopt the latest technology from Japan, while adding Japan as an export market. Chateraise Holding Co Ltd runs more than 450 shops in Japan and in recent years expanded to other countries, including China, Taiwan, Singapore and Malaysia.
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