Indonesia is seeking to strengthen its position as a global center for food production, innovation, and investment, supported by its manufacturing industry, natural resources, and large domestic market (18/09).

The Ministry of Industry (Kemenperin) is strengthening the food industry through faster downstreaming, higher value from local raw materials, stronger quality standards, and wider partnerships and international market access.

This effort comes as global consumer preferences increasingly focus on health, food safety, quality, and sustainability.

Indonesia Food Industry Builds on Strong Manufacturing Base

Indonesia’s manufacturing industry provides an important foundation for strengthening the country’s role in the regional and global food industry value chain.

World Bank Manufacturing Value Added (MVA) data for 2025 showed that Indonesia’s manufacturing value added reached USD275.61 billion. The figure placed Indonesia 12th in the world and first in Southeast Asia, ahead of Thailand, Vietnam, Singapore, and Malaysia.

Deputy Minister of Industry Faisol Riza said the achievement is important capital for increasing Indonesia’s role in the regional and global food industry value chain.

“Our manufacturing industry is becoming increasingly solid. Going forward, this strength must be translated into products with added value that are high-quality, innovative, and competitive in the global market,” Faisol said at the opening of Food Ingredients Asia (Fi Asia) Indonesia 2026.

Faisol said the food and beverage industry is one of the strategic sectors with an important role in strengthening the national manufacturing structure.

The government is committed to building a food industry ecosystem that is halal, healthy, innovative, and sustainable while meeting consumer needs and international market standards.

“We are committed to strengthening a halal, healthy, innovative, and sustainable food industry ecosystem. The holding of Food Ingredients Asia (Fi Asia) Indonesia 2026 is an important momentum to bring together the government, industry players, academics, and international partners to strengthen collaboration, including in technology and knowledge transfer,” Faisol said.

Food and Beverage Industry Posts Growth in 2026

The government is targeting Indonesian food and beverage exports to reach USD83.08 billion by 2029, with average annual growth of 10.9 percent.

To reach the target, Kemenperin is focusing on faster downstreaming based on local natural resources, increasing factory utilization to 70 percent, increasing exports of high-value-added downstream products, and expanding into 20 new export destination countries.

The targeted markets are in the Americas, Eastern Europe, the Middle East, and South Asia.

Acting Director General of Agro Industry Putu Juli Ardika said the development of the food and beverage industry must continue to follow changes in consumer behavior.

“Industry must continue to adapt by presenting products that meet consumer needs, including in terms of health, safety, quality, and sustainability,” Putu said at the opening of Fi Asia Indonesia 2026 at JIExpo Kemayoran, Jakarta.

In the first half of 2026, the food and beverage industry grew 6.77 percent. It contributed 41.86 percent to the GDP of the non-oil and gas processing industry and 7.16 percent to national GDP.

In 2025, food and beverage exports reached USD49.5 billion, up 19.5 percent and the highest level in the past five years. The trade surplus reached USD36.1 billion.

The positive performance continued in the first half of 2026, when food and beverage exports reached USD24.61 billion and the trade surplus reached USD17.57 billion.

The food and beverage industry also absorbed around 6.94 million workers, or 34.72 percent of the total workforce in the non-oil and gas processing industry.

Investment realization in the first half of 2026 reached Rp26.82 trillion.

Global Standards Create New Challenges for Food Industry

The food industry is facing increasingly complex demands from global markets.

Trade requirements now cover not only price and production capacity but also food safety, quality standards, environmental footprints, and demand for healthier and more sustainable products.

The European Union Deforestation Regulation (EUDR), Carbon Border Adjustment Mechanism (CBAM), tighter Maximum Residue Limit (MRL) requirements, and growing demand for clean-label and plant-based products are among the global regulations and trends affecting the industry.

Kemenperin is responding by strengthening mandatory Indonesian National Standards (SNI) for several strategic food products.

These products include wheat flour, bottled drinking water, palm cooking oil, instant coffee, cocoa powder, and refined crystalline sugar.

“Standards are not only intended to protect consumers, but also to increase confidence in Indonesian products and help industry meet global market requirements,” Putu said.

Putu said stronger standards need to be supported by better local raw material quality, technology, product innovation, and industrial capacity.

Downstreaming, therefore, is being directed not only toward higher production volumes but also toward products with higher added value and competitiveness in international markets.

Fi Asia Indonesia 2026 Strengthens Industry Collaboration

Food Ingredients Asia (Fi Asia) Indonesia 2026 is also being used to strengthen the competitiveness of the food industry. The event entered its 30th edition with the theme “Elevating Food Standards for a Healthier, Greener Future”.

The exhibition brings together food industry players, raw material suppliers, technology providers, academics, government representatives, and international business partners.

The event also provides opportunities for business-to-business matchmaking and is expected to strengthen the transfer of knowledge, technology, and innovation.

“We want to connect Indonesia’s markets and resources with global technology, innovation, and networks. The food industry must be able to produce more value-added products for international markets,” Putu said.

PHOTO: MARKETEERS/123RF

This article was created with AI assistance.

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