Indonesia's F&B industry utilization at 89% amid pandemic: ministry

Indonesia's F&B industry utilization at 89% amid pandemic: ministry

Acting director general for agro-based industry at the Ministry of Industry (Kemenperin), Putu Juli Ardika, visited the Mondeléz Indonesia factory in Jababeka Industrial Area, Bekasi, West Java on Friday (July 30, 2021). (ANTARA/HO/Kementerian Perindustrian)/rst)

Jakarta (ANTARA) - The utilization of the food and beverage industries in Indonesia has reached 89 percent amid the pandemic, acting Director General of Agro-based Industry at the Ministry of Industry Putu Juli Ardika has informed.

"The utilization of PT Unilever Indonesia and Mondeléz has reached 89 percent," he said on the sidelines of his visit to the two companies on Friday.

Production at food and beverage factories is still on track, and demand is increasing both in the domestic as well as the foreign market, he noted.

"With the circular letter from the Ministry of Industry, we wanted to ensure to provide the basic needs of the public," he said in a press release issued on Saturday.

He lauded PT Unilever Indonesia and Mondeléz for continuing to ship products to foreign markets.

This has helped boost Indonesia's foreign exchange reserves and proved that the nation's industry has the potential to compete in the global market, he said.

"For example, Unilever is exporting its ice cream to the Australian market by using modern technology storage devices," he added.

According to the Ministry of Industry, the food and beverage industry was one of the most significant sectors that helped national manufacturing exports to skyrocket in the first six months of 2021.

The total export value of the non-oil and gas processing industry from January to June, 2021 reached US$19.58 billion, an increase of 21.68 percent compared to the year-ago period.

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The food and beverage industry attracted investment of Rp36.6 trillion -- Rp14.7 trillion in domestic investment (PMDN) and Rp21.9 trillion in foreign investment (PMA) -- in the first half of 2021 amid the pandemic, as per ministry data.

To support the performance of the food and beverage industry and help factories continue production, the Industry Ministry is determined to maintain the availability of raw materials, Ardika said.

The food and beverage industry is also a labor-intensive sector and is responsible for increasing the added value of domestic raw materials, he added.

For example, Mondeléz buys raw chocolate from eight districts in four provinces of Sumatra and Sulawesi, he said. In addition, the company has empowered more than 30 thousand cocoa farmers, he added.

"It has brought an economic impact on their families and regions," Ardika said.

Head of the Cikarang Mondeléz Indonesia factory, Zaenal Abidin, revealed that the company has attracted an investment of US$23 million to meet the high demand in the export market.

The new production line will absorb 100 workers and produce Oreo biscuits with a 60 percent market share for exports and the remaining 40 percent for the domestic market, he said.

The new line will operate from November, 2021, with a production capacity of 43 thousand tons of Oreos per year, he added.

"We will have a total of six lines, which last year produced 85 thousand tons of biscuits per year. So far, our products have been exported to 38 countries," he said. 

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