Indonesian government set the reference prices for crude palm oil dan derivative products for export of US$782.03 per metric ton of CPO - Photo: Special

JAKARTA (TheInsiderStories) – The national food and beverage industry is projected to record 8-9 per cent growth this year, partly driven by regional elections to elect governors and regency heads held across the country. Judging from regional elections held in the past, the elections help boost people’s consumption.

“We are projecting the food and beverage industry to grow moderately by 8-9 per cent this year,” said Director General for Agro Industry at the Industry Ministry Panggah Susanto said.

In the nine months to September, 2017, the food and beverage industry grew by around 8.24 per cent, said Panggah Susanto. He added the food and beverage industry contributed 34.95 per cent to the national gross domestic product (GDP) in the first nine months 2017, the highest compared to other industries.

The food and beverage industry exports reached US$31.8 billion in full year 2017, including palm oil exports which reached US$9.88 billion, he added.

Meanwhile domestic direct investment in food and beverage sector reached Rp27.9 trillion in the nine months to September, while foreign direct investments reached US$1.4 billion, said Panggah Susanto. The Head of Federation of Food and Beverage Producers (GAPMMI) Adhi Lukman, however, looks to be more optimistic. He projected the food and beverage industry to grow by 10 per cent this year, higher than expected 8 per cent last year.