The Ministry of Industry (Kemenperin) has reported a 28% year-on-year increase in food and beverage (mamin) industry investment, reaching IDR 30.23 trillion in Q3 2024. This investment includes Foreign Direct Investment (FDI) worth IDR 13.44 trillion and Domestic Direct Investment (DDI) amounting to IDR 16.79 trillion. Putu Juli Ardika, Director General of Agro-Industry at Kemenperin, explained that this investment growth reflects rising investor interest in the sector. The government has made several investment facilitation efforts to attract more investments, and Kemenperin expects this positive trend to continue into the following year. He noted that the types of investments entering the food industry range from those producing raw materials for food and beverage products, such as sugar, vegetable fats, flavor enhancers, and seasonings, to ready-to-eat food industries.
Putu emphasized that the focus of these investments will be on the downstreaming of the agro-industry sector, which must prioritize quality and sustainability. The Ministry is committed to ensuring good governance and sustainability within the mamin industry through downstream initiatives. According to Putu, the downstreaming policy could add value to the sector, strengthen the industrial structure, and address challenges such as raw material availability, technology, and global geopolitical instability. To support raw material availability, Kemenperin encourages partnerships between the food industry and upstream sectors. Looking ahead, Kemenperin is optimistic about the agro-industry's growth prospects, as the mamin industry in Q3 2024 grew by 5.82%, contributing 40.17% to the non-oil and gas manufacturing GDP and generating USD 28.8 billion in export revenue. Despite global uncertainties, Putu stressed the importance of continued strategic policies to support the industry, particularly in ensuring the supply of raw materials and enhancing the competitiveness of national industries.
