Indonesia's manufacturing industry was worth IDR 2,097.7 trillion (approx. USD $156 billion) in 2015, contributing 18.1 percent to the country's gross domestic product (GDP), up from 17.8 percent of GDP in the preceding year. However, this higher contribution of manufacturing to the economy is mainly caused by the declining roles of oil & gas, commodities, agriculture and mining within the Indonesian economy. These sectors have all seen their roles decline amid persistently low commodity prices.

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Besides infrastructure, Indonesia's food and beverage sector remains a favorite of Indonesian banks for the disbursement of loans in 2016 as this sector is regarded promising. Meanwhile, a good supply of food products also supports a stable inflation rate (apart from administered prices, volatile food prices are a key contributor to inflation in Indonesia). Roy Armand Arfandi, General Director of Bank Permata, said Indonesia's economic growth is still highly dependent on people's purchasing power (household consumption accounting for nearly 56 percent of the nation's GDP), hence those sectors that support domestic consumption are attractive for banks.

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Indonesia's exports of plastics and plastic products fell 18.5 percent year-on-year (y/y) in 2015 to USD $2.25 billion from USD $2.76 billion in the preceding year. This decline was caused by weak global demand for plastic, falling selling prices and the low competitiveness of Indonesia's plastics and plastic products. Also in terms of volume Indonesia's plastic exports declined. Based on the latest data from Indonesia's Trade Ministry, the nation's plastics export volume fell 5.58 percent (y/y) to 1.39 million tons last year.

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Indonesia is forced to import sugar as domestic production of white crystal sugar in 2015 failed to achieve the target of 2.7 million tons. Indonesia's sugar processing plants only managed to produce 2.5 million tons of white crystal sugar in 2015. The Indonesian Sugar Association (AGI) predicts a widening sugar deficit in 2016 as it sees domestic production slowing further to 2.3 million tons in 2016, implying that about 400,000 tons of sugar need to be imported in order to meet domestic demand.

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Produsen minuman beralkohol terkejut, waktu pemerintah Indonesia melarang penjualan minuman beralkohol di minimarket dan kios di awal 2015 dalam upaya untuk "melindungi moral dan budaya masyarakat Indonesia". Meskipun minuman beralkohol masih diperbolehkan untuk dijual di supermarket, restoran, kafe dan hotel, penjualan bir menurun karena minuman tersebut dilarang di (diperkirakan) 70.000 minimarket yang telah menjadi tempat belanja yang sangat populer di daerah perkotaan di Indonesia.

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Sektor pangan merupakan salah satu sektor dalam industri manufaktur Indonesia yang terus memikat investor asing. Pernyataan ini berdasarkan laporan terbaru dari Badan Koordinasi Penanaman Modal (BKPM), badan layanan investasi pemerintah Indonesia, yang dirilis pada akhir Desember. BKPM mencatat bahwa permohonan oleh investor untuk izin prinsip di sektor makanan di periode 1 Januari sampai 28 Desember 2015 senilai Rp 184,9 triliun.

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Rencana Pemerintah Indonesia untuk menetapkan pajak cukai antara Rp 2.000 dan Rp 3.000 (kira-kira 0,18 dollar Amerika Serikat) per liter pada minuman berkarbon (soda) menghadapi perlawanan keras dari beberapa institusi. Berdasarkan pada hukum Indonesia, konsumsi produk-produk yang memiliki dampak negatif pada kesehatan konsumen atau lingkungan hidup perlu dikontrol dan dimonitor. Asosiasi Industri Minuman Ringan (Asrim), Gabungan Pengusaha Makanan dan Minuman Seluruh Indonesia (Gapmmi),  dan Asosiasi Pengusaha Indonesia (Apindo) menganggap tindakan ini berdampak negatif pada industri minuman ringan di negara ini.

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Omset di industri makanan dan minuman olahan diprediksi akan bertumbuh 4-5% pada basis year-on-year (y/y) pada kuartal pertama di 2015 dari periode yang sama di tahun lalu. Adhi Lukman, Ketua Umum dari Gabungan Pengusaha Makanan dan Minuman Indonesia (GAPMMI), mengatakan bahwa faktor-faktor yang telah menghambat industri ini adalah penurunan subsidi bahan bakar, ekspor yang lambat, ketergantungan industri ini pada impor bahan mentah, melemahnya daya beli masyarakat karena rendahnya harga-harga komoditi, dan nilai tukar rupiah yang lemah.

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In 2014, about 30 to 40 foreign franchise holders (mostly from Singapore and the USA) intend to enter Indonesia as the country's franchise business expands about 20 percent per year. Levina Supit, Chairman of the Indonesian Franchising and Licensing Association (Wali), said that Indonesia's franchise business is currently dominated by the food and drinks and services sector. The new foreign market participants will focus on these two sectors as prospects are promising due to Indonesia's rapidly expanding middle class.

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Food & Hotel Indonesia (FHI) exhibition will be held again on 26-29 July 2022 at the Jakarta International Expo (JIEXPO) after being held virtually (online) last year due to the global COVID-19 pandemic. This year’s 16th edition of FHI aims to gather the national business players to synergize globally through Indonesia internasional leading hospitality and food & beverages (F&B) trade exhibition.

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Indonesia, with a population of approximately 267 million, is the largest market for the Food Service Industry in the ASEAN region. With rising incomes amongst the growing middle class and changes in lifestyles, the Food Service Industry in Indonesia is expected to show a compounded annual growth rate (CAGR) between 2018 and 2023 of 7.06 percent.

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Culinary is certainly a promising business in Indonesia, particularly in Jakarta. Jakarta Dining Index Research done by Qraved reveals that every year, Jakartans dine out as many as 380 million times and spend up to IDR 21.4 trillion (approx. USD $1.5 billion). This fact is supported by huge growth of mid-scale restaurants (amounting up to 250 percent) in the last five years. It is therefore not surprising that Jakarta has an abundant option of restaurants.

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Triyono Prijosoesilo, Chairman of the Association of Indonesian Soft Drink Producers (Asrim), said the nation's soft drink sales market contracted in 2017 with the sales volume sliding by 1 percent year-on-year (y/y). It was the first time in his period as chairman that Indonesia's soft drink sales declined.

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Turnover in Indonesia's food and beverage industry is expected to grow 8.5 percent year-on-year (y/y) to IDR 1,400 trillion (approx. USD $105.2 billion) in 2017, while direct investment in this industry is expected to remain flat at around IDR 63 trillion (approx. USD $4.7 billion) with especially investors from Japan and South Korea eager to invest. Considering Indonesia's huge population (numbering more than 255 million) and their recovering purchasing power (after the five-year economic slowdown ended in 2016, while commodity prices have improved) the food and beverage industry is an attractive one for investors.

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Foreign investment in Indonesia's processed food and beverage industry is expected to have surpassed the level of USD $1 billion in the first half of 2016. Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (GAPMMI), informed that this result is much better compared to last year when foreign investment in the full-year only reached USD $1.5 billion. He added that foreign investment in the processed food and beverage industry (including food ingredients) is dominated by Asian countries, specifically Japan, South Korea and India.

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To increase liquidity and boost the value (the psychological effect), Indonesia-based Mayora Indah will conduct a 25-for-1 stock split. In combination with expected long-term net profit growth due to its fundamental strengths, the future looks bright for the food manufacturer. The company's shares touched IDR 39,000 a piece this week and are therefore perceived as expensive. After the stock split more retail investors are expected to collect Mayora Indah's shares despite the true value remaining unchanged.

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Turnover in Indonesia's processed food and beverage industry is expected to rise 10 percent (m/m) to IDR 440 trillion (approx. USD $32.4 billion) in the second quarter of 2016 from IDR 400 trillion in the preceding quarter. This growth is expected to come on the back of Islamic celebrations (Ramadan and Idul Fitri) that always trigger rising consumption. Although the Ramadan is the holy fasting month for Muslims - implying a focus on self-control - dinner and early breakfast 'parties' boost turnover in the nation's food and beverage industry.

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Indofood CBP Sukses Makmur, a leading producer of packaged food products in Indonesia, is estimated to see higher profit and revenue in 2016 supported by the launch of new products (which also strengthens the company's brand) and people's improving purchasing power. Indofood CBP Sukses Makmur, subsidiary of Indofood Sukses Makmur, has five main business segments: noodles, dairy, snack foods, food seasoning, and nutrition & special foods. The company listed on the Indonesia Stock Exchange in October 2010 with ticker symbol ICBP.

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Although most Indonesians still prefer to eat rice and noodles as part of their daily diet, an increasing number of Indonesians (particularly those who live in the urban environments and have adjusted to an ‘urban lifestyle’) have started to consume cereals and bread. In fact, Indonesia has become the world’s second-largest wheat importer and ranks among East Asia’s largest cereal importers. The country is dependent on these imports as domestic production of grains is close to zero (the climate doesn’t suit cultivation).

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