The plan of Indonesia's government to set an excise tax of between IDR 2,000 and IDR 3,000 (approx. USD $0.18) per liter on carbonated (soda) drinks met fierce resistance from several institutions. Based on Indonesian law, consumption of goods that have a negative impact on consumers' health or the environment need to be controlled and monitored. The Soft Drinks Industry Association (Asrim), Indonesian Food and Beverage Association (Gapmmi),  and Indonesian Employers Association (Apindo) all consider this move to be negative for the country's soft drinks industry.

Read more ›

Turnover in Indonesia’s processed food and beverage industry is expected to grow 4 to 5 percent year-on-year (y/y) in the first quarter of 2015 from the same period last year. Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (GAPMMI), said that factors have been hampering this industry are the winding down of fuel subsidies, the country’s sluggish export sector, the industry’s dependence on imports of raw materials, people’s weakening purchasing power amid low commodity prices, and a weak rupiah.

Read more ›

Growth of Indonesia’s non-oil and gas manufacturing industry in the first half of 2014 reached 5.49 percent (year-on-year) and thus outpaced the country’s general economic growth of 5.17 percent (yoy) over the same period. Indonesia’s manufacturing industry growth was particularly supported by growth in a number of sectors: Food, Drinks and Tobacco (+9.62 percent), Wood and Other Forest Products (+6.35 percent), Transportation Equipment Industry and Machinery (+4.52 percent), and Other Industrial Products (+15.77 percent).

Read more ›

Adhi Lukman, Chairman of the Indonesian Food and Beverage Association (Gapmmi), says he is optimistic that the investment targets that are set by Indonesia's Industry Ministry will be met this year. The Industry Ministry targets to see a total of IDR 63.25 trillion (approx. USD $4.6 billion) worth of private sector investment in the food and beverage industry of Indonesia, up 6.7 percent compared to investment realization in this industry one year earlier.

Read more ›

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.

Read more ›

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.

Read more ›

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.

Read more ›

Investment in Indonesia’s processed food and beverage industry is expected to grow at least ten percent to IDR 55 trillion (USD $4.6 billion) in 2015 from an estimated investment realization of IDR 50 trillion in 2014. Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (GAPMMI), said that investments in this sector have been solid due to rising consumption of food and beverages in Southeast Asia’s largest economy. Particularly foreign investments have been strong in 2014 and are expected to continue next year.

Read more ›

A total of twenty Japanese companies engaged in the food and beverage industry are exploring investment opportunities in Indonesia. According to research conducted by the Japan International Cooperation Agency (JICA), the food and beverage industry of Indonesia is regarded as a lucrative investment opportunity by these companies. If realized, these foreign direct investments could be worth between USD $400 million to USD $1 billion. However, JICA’s research did not mention any names of the Japanese companies.

Read more ›