The Indonesian food and beverage industry plays a crucial role in the national economy, growing at a rate of 5.53% in the second quarter of 2024, surpassing the overall economic growth of 5.05% and contributing 40.33% to the non-oil and gas industry sector's GDP. This significant contribution, as highlighted by Ignatius Warsito, Advisor to the Minister of Industry for Domestic Industry Strengthening, was discussed during the opening of Food Ingredients Asia Indonesia at JIExpo, Jakarta. The industry's growth is driven by a robust ecosystem involving numerous businesses, and Indonesia's food and beverage products, including palm oil and spices like pepper, turmeric, ginger, and cloves, have gained global recognition. Indonesia ranks fifth globally in whole spice exports, valued at USD 469 million, but ranks 18th in processed spice products, valued at USD 360 million. This highlights a significant opportunity for the downstream processing of spices to add value to local resources. The Ministry of Industry is promoting the development of the food and beverage industry through fiscal incentives such as tax holidays, tax allowances, and super tax deductions to stimulate investment, technology acquisition, and industry structure strengthening. Non-fiscal policies include active promotion of food and beverage products through domestic and international exhibitions, research and development, support for increased use of domestic agricultural products, and the adoption of advanced technologies.
Continuing his visit to Canada, Coordinating Minister for Economic Affairs Airlangga Hartarto engaged with business leaders and educational institutions from British Columbia in a Business Roundtable organized by the Asia Pacific Foundation of Canada (APFC) at Oceanic Plaza, Vancouver. Minister Airlangga reiterated Indonesia's commitment to achieving Net Zero Emissions by 2060, emphasizing the optimization of renewable energy, which currently accounts for only 0.3% of the estimated 3,689 GW potential. Indonesia has also developed a National Hydrogen Strategy and is promoting the production of electric vehicles, the development of semiconductor and AI ecosystems, and becoming a regional hub for Carbon Capture and Storage (CCS). British Columbia, recognized for its leadership in clean technology and innovation, has committed to net-zero emissions by 2050, with projects like the Smart Hydrogen Energy District (SHED) and companies such as Ballard Power Systems and Carbon Engineering.
