Indonesian food and beverage industry is expected to grow by around 3 percent in 2020, said government officials yesterday (08/11) - Photo by Industry Ministry Office

JAKARTA (TheInsiderStories) – Indonesian food and beverage industry is expected to grow by around 3 percent in 2020, said government officials yesterday (08/11). In the second quarter of this year, these sector grew by 0.22 percent on an annual basis compared to the same period in 2019.

This leading sector is able to show its ability to penetrate the international market amid the pandemic. In the first semester, the food and beverage industry contributed US$13.73 billion on the total export.

“This positive growth certainly depends on the development of the pandemic, which is expected to decline and disappear from Indonesia soon. If these things are achieved, we project that the food and beverage industry can grow by around 3 percent by the end of 2020,” said he director general at the ministry, Abdul Rochim, said in the official statement.

He continued, there are several leading commodities that spur the performance of the food and beverages industry such as processed fish, noodles and coffee. The growth of this industrial sector is also supported by the increase in the export value of crude palm oil and palm kernel oil, he adds.

In order to maintain a positive trend in the food and beverage industry sector, one of the important steps that his office is to encourage the availability of raw materials to meet the needs of manufacturing sectors. Rochim is optimistic that the performance of the food and beverage industry can still grow positively for the next period.

On a separate occasion, the minister, Agus Gumiwang Kartasasmita, emphasized that the food and beverage industry is one of the mainstay sectors that support manufacturing growth and the national economy. The important role of this strategic sector is evident from its consistent and significant contribution to the gross domestic product (GDP) of the non-oil and gas industry.

He revealed that the food and beverage industry is also a dominant business sector in the country, especially the small and medium industry. This becomes the foundation for the rotation of the national economy.

“In accordance with the aspirations on the road map for Making Indonesia 4.0, we are targeting the food and beverage industry to dominate the Southeast Asian region,” said the minister.

He stated, there are many food and beverage products produced by Indonesia that are favored by foreign consumers. For and example, Indonesian instant noodles get a great demand by countries in Africa. His ministry, said Kartasasmita, also continues to encourage market expansion and diversification of export-oriented food and beverage products.

Written by Editorial Staff, Email: theinsiderstories@gmail.com