Why GAPMMI Urges Investment in Food & Beverage Materials - Tempo.co English

TEMPO.CO, Jakarta - Indonesian Food and Beverage Association (GAPMMI) Chair Adhi S. Lukman expressed hopes for increased investment in the domestic raw material sector. He noted that the food and beverage industry posted strong performance, growing by 6.5 percent in the first half of 2026.

"This [increased] investment will accelerate the food and beverage industry in Indonesia," he said during the opening of the Food Ingredients Asia exhibition at JIExpo Kemayoran on Wednesday, September 16, 2026.

Adhi emphasized that Indonesia remains a massive consumer market. A wide range of food and beverage ingredients is essential to satisfy the sector's expanding demand.

Furthermore, the industry drives manufacturing growth by creating job opportunities, supporting local businesses, and integrating Indonesia into regional and global supply chains. Demand continues to expand as consumers increasingly seek healthier, safer, more convenient, and sustainable food options.

"Producers are required to remain competitive while building a reliable and robust supply chain," Adhi said.

He outlined three key priorities for the sector: supply chain resilience, value-added innovation, and collaboration. Therefore, producers must seize available opportunities.

Deputy Minister of Industry Faisol Riza highlighted that Indonesia currently ranks as Asia's second-largest food and beverage exporter, behind China. The country commands a 23 percent market share across the region.

"These exports are dominated by leading commodities, such as palm oil, fishery products, margarine, and processed cocoa," Faisol said at the same event.

Faisol noted that realized investment in the food and beverage sector reached Rp26.82 trillion in the first half of 2026. The sector has been a cornerstone of employment, absorbing approximately 6.94 million workers, or 34.72 percent of the total manufacturing workforce.

At the same time, the industry navigates heightened trade restrictions and evolving international standards, encompassing environmental and anti-deforestation mandates, stricter food safety protocols, and shifting consumer preferences.

"Improving food standards is not just about administrative compliance," Faisol emphasized.

To bolster industry development, GAPMMI organized the Food Ingredients Asia exhibition, held from September 16 to 18, 2026. The event drew 700 domestic and international exhibitors.