The Ministry of Industry of Indonesia has highlighted the significant role of the food and beverage industry in supporting the country's economic growth. According to Putu Juli Ardika, Director General of Agro-Industry at the Ministry of Industry, exports in this sector reached USD 9.18 billion (equivalent to IDR 149.63 trillion at an exchange rate of IDR 16,300) in the first quarter of 2024. "In the first quarter of 2024, the food industry recorded export values of USD 9.18 billion and imports of USD 4.27 billion, resulting in a positive trade balance of USD 4.91 billion," Ardika stated during the Seaweed Industry Business Matching event on 25 June 2024. This sector contributed 39.91% to the Non-Oil and Gas Industrial GDP and 6.97% to the national GDP in the first quarter of 2024. The GDP of the food and beverage industry grew to 5.87% in the first quarter of 2024, up from 5.33% in the previous period. Ardika also pointed out the promising business prospects in the seaweed processing sector, given Indonesia's abundant raw material supply for developing seaweed-derived products. "As the second-largest seaweed producer in the world, Indonesia is well-positioned to develop the seaweed industry, from cultivation to downstream processing," he explained.
Over the past decade, Indonesia has dominated the export of dried seaweed for both consumption and industrial raw materials. However, there has been limited growth in the export of higher-value downstream products. Currently, 66.61% of Indonesia's seaweed exports are dried seaweed, while processed seaweed (such as carrageenan and agar-agar) accounts for 33.39%. In 2023, Indonesia produced 10.7 million tons of wet seaweed. "Most processed seaweed is used in food and beverage products (77%), with the remaining 23% used in pharmaceuticals, cosmetics, and other industries. The industry needs to adapt to market changes and developments," Ardika noted. He added that the Ministry is collaborating with other governmental agencies to enhance competitiveness and optimize the downstream seaweed industry. Potential derivative products include biostimulants, bioplastics, animal feed additives, nutraceuticals, alternative proteins, pharmaceuticals, and textiles. "The Global Seaweed New and Emerging Market Report 2023 identified new market opportunities for seaweed-derived products with a potential market value of USD 11.8 billion by 2030," Ardika concluded.
