The Ministry of Industry is trying to realize food product diversification by utilizing local resources.
Jakarta (ANTARA) - The Ministry of Industry is encouraging small and medium industry players to diversify their food products by utilizing local materials to increase their added value.

Director of food, furniture, and building materials, small and medium industries at the ministry, Yedi Sabaryadi, said that the food industry has enormous potential for development, and it is hoped that the downstreaming of agricultural products will be realized in the future.

"The Ministry of Industry is trying to realize food product diversification by utilizing local resources," he said here on Friday (June 14).

He noted that the food industry contributed greatly to the formation of the non-oil and gas processing industry sector. In the first quarter of 2024, the food sector contributed 39.91 percent to the gross domestic product (GDP) share of the non-oil and gas processing industry.

The small and medium food industry comprises 1,682,969 business units, which contribute 1.33 percent to the GDP and absorb 3,892,159 workers.

Local raw materials are expected to serve as an alternative option for realizing food security in Indonesia. According to Sabaryadi, there are still many local raw food materials that are not being utilized maximally.

Some such materials are sorghum, which can be a substitute for rice, and porang (Amorphophallus muelleri), which can be used in the place of rice and flour.

The Ministry of Industry is collaborating with the Ministry of Agriculture to develop these raw materials and ensure food safety.

To accelerate the downstreaming of food commodities, he said, his ministry is carrying out several programs, such as business acceleration of local food-based small and medium enterprises (SMEs) through Indonesia Food Innovation (IFI) 2024.

The effort involves technical and business assistance, network development, and food safety system certification.

It also includes increasing the added value of local food commodities at production centers and improving the food safety system through quality assurance system certification or hazard analysis and critical control point (HACCP) certification to increase competitiveness.

The Ministry of Industry is also carrying out programs to increase the added value of food commodities at production centers, such as through the revitalization of the centers using special allocation funds as well as assisting food and market safety systems.

Promotions through exhibitions, such as Trade Expo Indonesia, are also continuing to be carried out to increase markets, while pursuing improvements in market access through partnerships.

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Translator: Maria Cicilia, Raka Adji
Editor: Tia Mutiasari
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