Indonesia's Food and Beverage Industry Relies on Imported Ingredients: Here Are the Supplying Countries

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Adi Ahdiat 26/04/2023 18:40 WIB

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According to a USDA report, in 2022 Australia was the largest source country for Indonesia's food and beverage raw material imports.

Origin of Imported Raw Materials for Indonesia's Food and Beverage Industry (2022)

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Indonesia's Food and Beverage Industry Relies on Imported Ingredients: Here Are the Supplying Countries

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Origin of Imported Raw Materials for Indonesia's Food and Beverage Industry (2022)

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According to the Ministry of Industry (Kemenperin), Indonesia's food and beverage (F&B) industry heavily relies on imported raw materials.

"We still depend on imports for up to 65% of our F&B raw materials. This need is largely for F&B industries ranging from large-scale to small-scale or MSMEs," said Putu Juli Ardika, Director General of Agro Industry at Kemenperin, as reported by *Katadata* on Thursday (2/3/2023).

According to Putu, two reasons explain this high import rate. First, some raw materials cannot be produced in Indonesia, such as wheat.

Second, some raw materials can be produced domestically, but production capacity is low and cannot meet industry demand, such as milk and sugar.

"Indonesia still imports milk because domestic production is limited. Sugar has enormous demand, while supply remains limited," said Putu.

According to data from the United States Department of Agriculture (USDA), in 2022 Australia was the largest supplier of food and beverage raw materials to Indonesia, with imports valued at USD 3.9 billion or approximately Rp 58.3 trillion (assuming an exchange rate of Rp 15,000 per USD).

These imports from Australia include wheat, milk, and beef. Indonesia also purchases significant quantities of food and beverage raw materials from the United States, Brazil, China, and India, with import values detailed in the graph.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Food and Beverage Industry Relies on Imported Ingredients: Here Are the Supplying Countries

Indonesia's Food and Beverage Industry Relies on Imported Ingredients: Here Are the Supplying Countries

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Indonesia's Food and Beverage Industry Relies on Imported Ingredients: Here Are the Supplying Countries

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