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As the largest economy in Southeast Asia, also the fourth most populated country in the world, Indonesia has fostered a rich and dynamic food & beverage market with very active consumption demand. It is reported that around three-quarters of Indonesia's food, according to the consumption value, will have to be supplied from imports by 2050. This recap collects major market dynamics occurred in July 2022, so as to help stakeholders better navigate the landscape of Indonesia's F&B sector.
Indonesia Central Bureau of Statistics (BPS) released the value of Indonesia's imports in June 2022 amounting to US $21 billion, an increase of 12.87 percent from the previous month which amounted to US $18.61 billion. However, the sugar and confectionary imports suffered the biggest decline to US $152.8 million.
In Indonesia, many industries including animal feed sector always rely on the significant volumes of wheat imports. As the conflict between Russia and Ukraine led to a reduction in wheat supply, as well as the import reduction of wheat from India, hence Indonesia turned to many new partners in terms of wheat imports.
The BPS announced that in March 2022, Indonesia's wheat imports reached US $445 million, an increase of 17% month on month. As the main wheat importer of Indonesia, Australia's export volume increased by 14% in March 2022, reaching US $144.5 million. As Argentina replaced the previous import channels of Russia and Ukraine, Indonesia's wheat imports from Latin American countries reached US $164.5 million, an increase of 73% in one month. The import value of wheat from Canada also increased by 66% to US $57 million, and that from Thailand soared by 152%, but the total value was relatively small as US $623,000, and that from Pakistan increased by 19% to US $927,000. As a new wheat exporter, Myanmar exported wheat to Indonesia for the first time with the import value of US $1.4 million.
The food and beverage industry in Indonesia grew by 3.75% in the first quarter of 2022, higher than the 2.45% in the first quarter of 2021. The food and beverage imports in the first quarter of 2022 reached US $3.92 billion. In terms of investment, by the end of the first quarter of 2022, the actual investment in the F&B industry had reached 19.17 trillion IDR. It proves that Indonesia's F&B industry has started to rebound, which benefits from the policies, including exempting import tariffs for raw materials and commodities in the F&B industry in 2021.
According to the data of BPS, Indonesia's salt imports in 2021 reached US $107.52 million, with an import volume of 2.83 million tons, an increase of 13.7% over the previous year. Australia was the biggest supplier of imported salt to Indonesia, with a value of US $83.12 million and an import volume of 2.1 million tons. Followed by India, amounting to US $22.13 million (715,500 tons). The next was New Zealand with US $1.4 million (34,800 tons). The total import volume of China and Denmark was US $340,200 (24,700 tons) and US $217,300 US dollars (44.85 tons) respectively.
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