Food and Drink Sector

An Expert's View about Food , Beverages and Tobacco in Indonesia

Posted on: 25 Aug 2012

Development of the food and beverage industry is a priority for the Indonesian government.

Food and Drink Sector in Indonesia Development of the food and beverage industry is a priority for the Indonesian government. The sector offers good opportunities for domestic and foreign manufacturers and importers or suppliers of processing equipment, raw materials and finished products. Market overview Indonesia’s food and beverage industry has expanded robustly in recent years, fuelled by the country’s surging middle class and increased purchasing power. The government has targeted the industry to grow by 8.15% this year, while the Indonesian Food and Beverage Producers Association (GAPMMI) has estimated that overall food and beverage sales nationwide will rise by 10% to US $77.39 billion this year. Indonesian consumers prefer internationally well-known brands and imported products, particularly for their children. The country is a major food import market. A large and expanding middle class, increasing awareness of healthy lifestyles and strong growth in the modern retail sector all contribute to Indonesia’s growing demand for imported food products. Continuous development of organised retail infrastructure in major cities has also played a part in fostering this growth. Key opportunities Key products demanded by the market includes: ξ Packaged food ξ Fresh food, particularly starchy roots, fruits, vegetables, fish and seafood, nuts and pulses ξ Organic and healthy food ξ Gourmet food ξ Ethnic food ξ Ready-to-drink tea, coffee, and functional beverages Latest export opportunities – sector Latest export opportunities - Indonesia Getting into the market Product registration in Indonesia can prove to be lengthy, bureaucratic, and costly. Foreign food and beverage importers commonly enter the market through partnerships with distributors and/or agents. Distributors and agents are able to provide the much-needed network to achieve extensive local coverage, distributing the products directly to retailers, the food service industry and other stakeholders in the industry. As of September 2010, the National Agency of Food & Drug Control (BPOM) has also implemented a requirement for all food and non-food products circulating in the country to carry labelling in Indonesian, setting out details of ingredients utilized, an expiration date determined by the Ministry of Health, and storage and preparation instructions when applicable. “Halal” certification is not mandatory for all food products, however, given almost 90% of the population is Muslim, “Halal” remains a very significant aspect. Obtaining “Halal” certification is often recommended, and it is essential to have an in-depth understanding of the procedures and requirements of attaining “Halal” certificates for food and beverage products entering the market. More about doing business in Indonesia Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. Pooja Thawani, British Embassy Jakarta, Indonesia. Tel :+62 21 2356 5257, Fax: +62 21 2356 5352 or email : Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – sector Major Events INTERFOOD Indonesia, 21 – 24 November 2012, Jakarta International Expo FOOD & HOTEL Indonesia, 10 – 13 April 2013, Jakarta International Expo Useful links More about OMIS and other UKTI services for exporters
Posted: 25 August 2012

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