Ministry of Industry: Fi Asia is expected to boost investment value of Indonesia’s Food sector

Syifa, events . 08 Sep 2022
Fi Asia 2022

Heaptalk, Jakarta – The 25th Food Ingredients Asia (Fi Asia) exhibition held on September 7th – 9th, 2022, has been officially opened in Jakarta by the Director General of the Agro-Industry Ministry of the Industry Republic of Indonesia, Putu Juli Ardika (09/07). The return of this event is expected to increase the investment in the Food and Beverage sector in Indonesia.

The opening ceremony was also witnessed by several parties, consisting of the Chairman of the Association of Indonesian Food Technology Experts (IAFT/PATPI), Umar Santoso; Chairman of SEAFAST Center of IPB University, Puspo Edi Giriwono; Chairman of GAPMMI, Adhi Lukman; Regional Portfolio Director ASEAN Informa Market, Rungpech Chitanuwat, and Ambassadors representative from multiple countries.

During his speech at the ceremony, Putu conveyed the F&B sector has contributed to the non-oil and gas industry by 38.38% in the second quartal of 2022. Despite being hit by the COVID-19 pandemic, Indonesia’s Ministry of Industry recorded the food and beverage sector is still growing significantly at 3.68% in Q1 of 2022, compared to the similar quartal of 2021 with only 2.9%.

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According to the McKinsey report, the level of food and beverage consumers is anticipated to reach 90 million people in 2030, with F&B expenses increasing by more than 50% yearly. The estimation enables Indonesia’s F&B expenditure to achieve USD194 billion in 2030.

Besides the high domestic market demand, the F&B industry would continue to increase by the immense international market demand. Putu disclosed the export operation in the food and beverage sector had touched USD21.3 billion from January to July 2022. This outcome increased 9% from the equal period of 2021, worth USD19.5 billion.

“On the other hand, Indonesia’s food and beverage investment value has attained USD2.8 billion in Q1 of 2022. The result is a fantastic accomplishment for the food and beverage industry in the archipelago. Thus, the Fi Asia exhibition will boost the investment value to be more significant until the end of 2022.” Putu, in his statement.

Supported by Indonesia’s Food and Beverage Association (GAPMMI), the presence of this biggest food ingredients expo is animated by more than 300 top food ingredient manufacturers worldwide to exhibit their newest product innovations. As stated by Chairman of GAPMMI, Adhi Lukman, Fi Asia will deliver an added value for visitors and exhibitors. He expects Indonesia will not only absorb foreign commodities but also can produce innovative processed food and beverages with more efficient costs.

In response to Putu’s explanation, Adhi further elaborated that Indonesia’s food and beverage industry is still performing a positive growth during the pandemic, from 1.58% in 2020 to 2.54% in 2021, as well as an increase of 3.68% with a total investment value of USD2.8 billion in early 2022. However, Andi claimed this increase is still below the expected value of around 7% to 10%. For this reason, he looks forward to gaining full support from diverse stakeholders to accelerate this industry enhancement, particularly during the Fi Asia festival.