The Ministry of Industry is spearheading efforts to enhance the competitiveness of Small and Medium Enterprises (SMEs) in the Food and Beverage (F&B) sector through the Indonesia Food Innovation (IFI) Program. This initiative aims to empower SMEs by providing them with guidance and assistance from experts in business and technical fields. By fostering innovation and market awareness, the program seeks to transform SMEs into modern, marketable, profitable, and sustainable entities, thereby contributing to Indonesia's economy. In the first quarter of 2024, the F&B sector dominated the Non-Oil and Gas Manufacturing Industry's GDP structure, underscoring its pivotal role in Indonesia's economic landscape. Reni Yanita, Director General of Small, Medium, and Various Industries at the Ministry of Industry, highlighted the sector's substantial export value, accounting for 19.4% of Non-Oil and Gas Manufacturing exports in April 2024.
However, F&B SMEs face challenges such as limited capital, inadequate management, and insufficient innovation. Despite these obstacles, they play a crucial role in Indonesia's food security, with around 1.7 million SMEs employing 3.6 million workers. Efforts to address these challenges include promoting innovation, ensuring stable raw material supplies, and enhancing downstreaming and industrialization processes. The IFI 2024 program, themed "Promoting Sustainable Supply Chain and Added Value through Innovation to Serve the Dynamic Markets," aims to support the development of SMEs by encouraging innovation and enhancing their capacity to meet market demands sustainably. The program comprises two categories: intermediate product and end product, targeting SMEs involved in different stages of the food industry supply chain. To participate in IFI 2024, SMEs can register online from June 6 to August 4, 2024. Selected participants will undergo a rigorous selection process, with the top performers receiving exclusive coaching and mentoring to scale up their businesses. Additionally, winners will have the opportunity to obtain certifications and access global e-commerce platforms, facilitating their integration into the global market. Overall, the IFI 2024 program represents a concerted effort by the Ministry of Industry to empower F&B SMEs, foster innovation, and drive sustainable growth in Indonesia's food industry.
