As the Fi Asia 2018 is approaching and will be held in Jakarta, we would like to highlight the growing importance of the Indonesian market to food ingredients suppliers, and the future direction of Indonesia, which is also ASEAN's largest consumer market.
With a population approaching 270 million people, and with a strong agriculture-based economy, the role of Indonesia in the development of food ingredients should not be overlooked.
Although the food industry is still lagging behind its counterparts in Thailand and Malaysia in terms of development, the industry has a huge room for growth coupled with its large manpower and huge agricultural resources.
In 2017, Indonesia's economy (GDP) crossed the psychological US$1 trillion dollar, making it one of a few countries in the world with that ranking.
The following are the latest statistical updates on Indonesia F&B industry:
Total Population: 265 million (January 2018)
GDP (Nominal): US$1,015.5 billion (> US$1 trillion)
GDP Growth: 5.07% (2017)
GDP Per Capita: US$3,847 (2017)
3 major regions and their share of GDP: Java (58.5%), Sumatra (21.7%), Kalimantan (8.2%)
Estimated Share of F&B enterprises by size in Indonesia: only 0.4% are medium to large enterprises while 99.6% comprise of small and micro enterprises.
Contribution of F&B Industry to the Non-Oil & Gas GDP: 33% (in 2016), 35% (in 2017)
The latest retail audit done by Nielsen showed that Cooking Oil and Liquid Milk enjoyed double digit growth in Indonesia. (see Chart 1.0 below)