The Ministry of Industry (Kemenperin) is intensifying efforts to bolster the role of small and medium enterprises (SMEs) in enhancing domestic food production to uphold and strengthen national food security. This initiative aims to develop the food industry through agricultural product downstreaming, fostering diversified food products that utilize local resources or raw materials to increase their value-added contributions. Reni Yanita, Director General of Small, Medium, and Miscellaneous Industry (IKMA) at Kemenperin, highlighted the significant prospects in food industry development, emphasizing the potential for downstreaming agricultural products domestically. Agricultural commodities and alternative local food materials are crucial for Indonesia's food security backbone, catering not only to fresh produce but also advanced food processing. For instance, industries can utilize substitutes like cassava, sago, porang, sorghum, and others as carbohydrate sources, demonstrating the strategic importance of accelerating the downstreaming of food commodities.
Yedi Sabaryadi, Director of Food, Furniture, and Building Materials SMEs, added that innovative food products also target retail sectors. In May 2024, IKMA conducted a Business Matching event, linking 47 selected food SMEs with 24 retail companies, generating a transaction potential of IDR 33 billion. Among the participants, 26 SMEs were alumni of the Indonesia Food Innovation (IFI) program, with one SME specializing in honey products recording the highest potential transaction value of IDR 1.02 billion. The IFI program has seen increasing participation annually, with 7,925 applicants over four rounds and 2,153 in 2023 alone. Strict criteria ensure curated participation, requiring SMEs to hold Industrial Business Licenses (NIB), distribution permits, and operate within 2 to 5 years with a minimum monthly sales turnover of IDR 25 million. The facilitation provided by IKMA has enabled many IFI participants to boost revenue by expanding national and export markets. Successful examples include Rossalie Cheese from Bali, certified with HACCP standards, penetrating premium hotel networks, retail markets (Kem Chicks, Pepito, Papaya), and upscale restaurants across Indonesia. Another success story is CV Nusantara Jaya Food (NJF) from Malang, East Java, which expanded production capacity and market reach to Curacao, Hong Kong, Korea, and Australia, producing 300 tons monthly of frozen vegetables and fruits for mining companies and the Indonesian Catering Association.
Source: https://industri.kontan.co.id/news/kemenperin-dorong-ikm-untuk-bantu-percepat-diversifikasi-pangan
