Indonesia's food and beverage industry plays a crucial role in the national economy. In the second quarter of 2024, this sector achieved a growth rate of 5.53%, surpassing the overall economic growth rate of 5.05%. Consequently, the food industry contributed 40.33% to the non-oil and gas sector of the Gross Domestic Product (GDP). This significant contribution highlights the food sector as the largest sub sector in terms of GDP contribution, as noted by Ignatius Warsito, Special Advisor to the Minister of Industry, during the opening of Food Ingredients Asia Indonesia at JIExpo, Jakarta, on September 4. The food and beverage industry’s growth outpaced the non-oil and gas industry growth of 4.63%, reflecting the extensive scale of businesses involved in the national food and beverage ecosystem.
Additionally, Indonesian food products are gaining global recognition, attracting considerable attention from various countries. Products such as palm oil and spices like pepper, turmeric, ginger, and cloves are in high demand in export markets. Indonesia’s whole spice exports are valued at USD 469 million, making it the fifth largest in the world. In contrast, processed spice exports rank 18th globally with a value of USD 360 million. This disparity indicates substantial potential for downstream spice processing industries, with a global market share of USD 22 billion. The Ministry of Industry is promoting the food and beverage sector through fiscal policies, including tax holidays, tax allowances, and super tax deductions, to encourage investment, technology adoption, and industrial structure enhancement. Non-fiscal measures involve facilitating product promotions through domestic and international exhibitions. The sector's growth prospects are also bolstered by a large, youthful population with significant purchasing power. Food Ingredients Asia Indonesia 2024, featuring 700 branded suppliers from 38 countries, is expected to drive innovation and expand networking opportunities within the industry.
Source: https://mediaindonesia.com/ekonomi/698286/industri-mamin-masih-jadi-penopang-terbesar-perekonomian
