Ministry upbeat about food and beverage exports rising amid pandemic

Ministry upbeat about food and beverage exports rising amid pandemic

Indonesian food products at a supermarket in Beijing, China. ANTARA/M. Irfan Ilmie/sh

Indonesian food and beverage products hold potential to support growth in the trade sector. There is a dire need for food and beverage products, especially to boost immunity and public health during the pandemic
Jakarta (ANTARA) - The Trade Ministry is optimistic of exports of food and beverage products increasing during the COVID-19 pandemic, with the global market trend, changing from fresh to processed foods that can be stored safely for longer.

"Indonesian food and beverage products hold potential to support growth in the trade sector. There is a dire need for food and beverage products, especially to boost immunity and public health during the pandemic," the ministry's Director General of National Export Development, Kasan, noted in a statement here on Tuesday.

Indonesia's exports of processed food during the period from January to May 2020 rose by 2.12 percent, or some US$1.63 billion.

Indonesia's food and beverage industry had registered a growth of 7.78 percent in 2019, higher than the total growth of the non-oil and gas sector at 4.34 percent. Growth during the first semester of 2020 had reached 3.94 percent, with a contribution of 19.98 percent to the gross domestic product (GDP).

Kasan highlighted that changing consumer trends should be used to encourage exports, so producers should continue to diversify its products.

"To date, products with certification, geographical indication, and organic products have shown an increasing trend in the global market. The demand for halal products has also risen, as the number of Muslims across the globe has increased," Director of Export Product Development Olvy Andrianita remarked.

In the new normal era, Andrianita called for exporters to be heedful of special requirements, including food safety, as well as regulation to access the export market that apply stringent requirements.

Other challenges to exporters are in the form of market and product development, including diversifying processed foods that align with the export market, improving the added value of products, catering to the taste of global consumers, and overcoming hindrance to promotion and branding.
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