Food and drink sector in Indonesia

With a 230 million population, stable economic growth of 6% and a growing middle class, Indonesia provides great opportunities in the food & drink sector, which also includes food processing equipment, technology, 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 their increased purchasing power. The government has targeted the industry to grow by 8.15% in 2013, 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 in 2013.

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. Indonesian consumers prefer international brands and imported products, particularly for their children. 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 include:

Packaged food
Fresh food, particularly starchy roots, fruits, vegetables, fish and seafood, nuts and pulses
Organic and healthy food
Grocery products
Premium cooking oil
Gourmet food
Ready-to-drink tea, coffee, and functional beverages
Ethnic food

Latest export opportunities in the Food & Drink sector

Latest export opportunities in Indonesia

Getting into the market

Finding a local partner is a mandatory requirement and therefore key to market entry. To take advantage of the opportunities available, it is crucial that companies:

Appoint the right business partner who has an Import Identifier Number (API – Angka Pengenal Import)
Visit the market on a regular basis (face-to-face contact and the development of relationships is critical to business success)
Prepare comprehensive information packs profiling your company, product specifications, pricing and terms of payment
Participate in major trade exhibitions to showcase products/ services to relevant audience/ buyers

All food and drink products must be registered at the National Agency of Food & Drug Control (BPOM). This registration can be done by the local distributor or agent. All imported products must show ingredients used, a storage suggestion and any applicable health warning in Indonesian.

“Halal” certification is not a mandatory requirement for all food products, however, given almost 90% of the population is Muslim, “Halal” remains a very significant aspect. Obtaining “Halal” certification is strongly 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 for 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.

Mima Sefrina, British Embassy Jakarta, Indonesia. Tel :+62 21 2356 5200, Fax: +62 21 2356 5352 or email : [email protected]

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 in Food and Drink sector

Interfood Indonesia Expo

28 – 31 August 2013

JIExpo, Kemayoran Jakarta

http://interfood-indonesia.com/

Herbal and Health Food Indonesia

28 – 31 August 2013

JIExpo, Kemayoran Jakarta

http://www.interfood-indonesia.com/herbal/index_herbal.php

(both of these are annual events)