“The food industry can play an important role in achieving these targets. So far, the food industry sector has made a significant contribution to the national economy," Industry Minister Agus Gumiwang Kartasasmita said in a statement released here on Tuesday.
The food industry sub-sector contributed 38.38 percent to the gross domestic product (GDP) of the non-oil and gas processing industry in the second quarter of 2022.
In addition, it also contributed to the national export value, which reached US$21.35 billion.
"The data shows that the performance of the food industry sector is quite good, which has also been able to provide a trade balance surplus of US$12.95 billion," the minister said.
The five main export commodities of the food industry are palm oil, palm cake, margarine, coconut oil, and frozen shrimp.
The food industry sub-sector also ranked second in terms of its contribution to investment in the non-oil and gas industry in the second quarter of 2022 at Rp22.42 trillion.
"We should be grateful for the increase in industrial performance, especially in the food sub-sector. This needs to be maintained and improved again, while remaining vigilant in the midst of the threat of a world food crisis," he added.
The largest investments in the sector were in the bread, flour, and palm oil industries, among others.
The industry absorbed 5.21 million workers, or accounted for 20.87 percent of the total workforce in the non-oil and gas manufacturing sector, which reached 18.64 million.
Meanwhile, in the small and medium-scale food industry, 1.68 million business units contributed 1.33 percent to the national GDP in the second quarter of 2022, according to the ministry.
"All provinces in Indonesia have small and medium-scale food industry (IKM) centers, with a total of 4,107 IKM centers with a total of 155,605 business units that absorb 431,830 workers," Kartasasmita said.
The ministry's director general of agro industry, Putu Juli Ardika, said there are seven main commodities that are used as raw materials by the food industry—wheat flour, sugar, corn, fisheries, cooking oil, poultry meat, beef, and rice.
"Currently, the stock is still safe," he informed.
Indonesia has abundant biodiversity to support the diversification of processed food products, including exploring the potential of cassava flour, porang, sorghum, sago, canna, banana, breadfruit, taro, and sweet potato, he added.
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Translator: Sella P Gareta, Sri Haryati
Editor: Rahmad Nasution
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