According to www.industry.co.id, Indonesia’s food and beverage industry aims to capture a stronger position in global value chains, with the Ministry of Industry setting an export target of USD 83.08 billion by 2029, reflecting an annual growth rate of 10.9 percent.
Manufacturing Strength and Global Ambition
The target is anchored in Indonesia’s expanding manufacturing base: World Bank data for 2025 shows Indonesia’s Manufacturing Value Added (MVA) at USD 275.61 billion, ranking 12th globally and first in ASEAN. Deputy Minister of Industry Faisol Riza emphasized that this industrial strength must translate into high-value, innovative, and globally competitive products. At the opening of Food Ingredients Asia (Fi Asia) Indonesia 2026, he stated:
“Our manufacturing industry is becoming increasingly solid. Going forward, this strength must be translated into products that add value, meet quality standards, drive innovation, and compete effectively in global markets.” — Faisol Riza, Deputy Minister of Industry
The Ministry is prioritizing downstream processing based on domestic natural resources, raising factory utilization rates to 70 percent, boosting exports of high-value downstream goods, and entering 20 new destination countries across the Americas, Eastern Europe, the Middle East, and South Asia.
Robust First-Half 2026 Performance
Acting Director General of Agro Industry Putu Juli Ardika reported that the food and beverage sector grew 6.77 percent in the first half of 2026, contributing 41.86 percent to non-oil-and-gas industrial GDP and 7.16 percent to national GDP. Exports reached USD 24.61 billion in that period, generating a trade surplus of USD 17.57 billion.
This follows strong full-year 2025 performance: food and beverage exports totaled USD 49.5 billion, a 19.5 percent increase year-on-year — the highest in five years — with a surplus of USD 36.1 billion. Employment in the sector stands at 6.94 million people, or 34.72 percent of total non-oil-and-gas industrial employment. Investment realization in the first half of 2026 amounted to IDR 26.82 trillion.
Navigating Global Regulatory Headwinds
The ministry acknowledges intensifying global regulatory challenges, including the European Union Deforestation Regulation (EUDR), the Carbon Border Adjustment Mechanism (CBAM), stricter Maximum Residue Limits (MRL), and rising consumer demand for clean-label and plant-based products. To strengthen compliance and market access, Kemenperin has expanded mandatory Indonesian National Standards (SNI) to cover wheat flour, packaged drinking water, palm oil, instant coffee, cocoa powder, and refined crystal sugar.
Putu Juli Ardika explained:
“Standards are not only intended to protect consumers, but also to enhance confidence in Indonesian products and assist industries in meeting global market requirements.” — Putu Juli Ardika, Acting Director General of Agro Industry, Ministry of Industry
The third decade edition of Fi Asia Indonesia 2026, themed Elevating Food Standards for a Healthier, Greener Future, serves as a platform to advance collaboration, technology transfer, and innovation toward a healthier, greener, more competitive, and sustainable food industry.
Source: industry.co.id
Compiled from international media by the SCI.AI editorial team.
