"The food and beverage industry has clearly shown positive growth even during the pandemic, and the majority of them are small- and medium-sized industries that still face many challenges in their efforts to level up," Hasran noted in an official statement here on Wednesday.
Hasran said that food and beverage Small and Medium Industries (SMIs) still face challenges in developing their businesses, for instance, internal challenges in the form of limited capital, management weaknesses, unfulfilled business standards and legality, and limited innovation capabilities.
Those SMIs also face external challenges that include uncertainty in the supply of raw materials, fluctuations in raw material prices, unstable market demand, and competition between business actors.
"Apart from training, guidance, and convenience in managing the legality of their business, digitizing their business is also a way out of the problems caused by the challenges they are facing," he remarked.
He suggested the government to help food and beverage SMIs to develop by easing the legality requirements for them.
The private sector and civil society can also support by providing essential training and guidance on business skills, financial management, and technological mastery for SMIs.
"With the rapid developments in technology and the rapid digital transformation that are changing the 'face' of the economy, including in Indonesia, food and beverage SMIs need to be assisted in preparing themselves to adapt and innovate, so that they can level up to become a big industry," he emphasized.
The government must also pay attention to women food and beverage SMI players, who are dominating the number of food and beverage SMI owners by creating gender-sensitive regulations.
Currently, the food and beverage industry in Indonesia grew by 3.75 percent year on year in the first quarter of 2022. The Ministry of Trade recorded that 1.68 million food and beverage SMIs operated in Indonesia in the first quarter of 2022, constituting 38.27 percent of the total SMIs in the country.
The food and beverage industry contributed 37.77 percent to the gross domestic product (GDP) of the non-oil and gas industry, or 6.55 percent to the national GDP.
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Translator: Sanya Dinda, Raka Adji
Editor: Sri Haryati
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