F&B Consumption to Enliven Economic Uncertainty

F&B Consumption to Enliven Economic Uncertainty

reported by: Setiawan Liu

Jakarta, November 2, 2019/Indonesia Media – Indonesian entrepreneur is seeing the significance of domestic industrial development including food and beverage (F&B) consumption after President Joko ‘Jokowi’ Widodo formed cabinet members including the economic team, led by former Industry Minister Airlangga Hartarto. The President, who was sworn in for a second in for a second and final five-year term in office a few days ago is facing economic downturn periods characterized by uncertainty and change. “The government of Indonesia should push consumption to enliven the economic uncertainty. Since the consumption rate per capita for bread, pastry, bakery in Indonesia is below ASEAN (the Association of Southeast Asian Nations) in general,” said Jakarta-based businesswoman Vera Umbara (Yu Zhen Zhen).

The Data of Euromonitor reveals that the growth of Indonesian bakery market reached only 13,3 percent of the industry, over 2010 – 2015. The consumption per capita only reached 2,3 kilograms, which was lower than ASEAN in general. Comparing to another countries in ASEAN; Thailand at 2,4 kilograms, Malaysia at 7,6 kilograms and Singapore at 9,7 kilograms. “We have to develop the potential of domestic market since the demand and consumption of bakery, pastry increase year by year. Simultaneously, we have to improve small medium enterprises (SMEs) of bakery, pastry. We can see how the government of Singapore hold Great Sales massively. Many people participated and high multipliers occurred to domestic economy,” said Vera who operates food equipment distributor, Guataka (GTK) Makmur Horecaba Indonesia

Such a situation could be a concern as rice production in Indonesian increase continually during decades. The increase in food consumption is faster than the rate of production. The population growth in Indonesia is projected to grow by 24.5 percent over the next four decades, from 250 million in 2019 to 311 million in 2050. If the food needs for the population cannot be met, Indonesia will become a food insecurity country. Meanwhile, Indonesia has a great potential food supply from a local resource that can be developed as the basis for food security in the long-term period. “The government of China has managed to develop food engineering, including meat, bakery, vegetables to suffice the people. The government applies the agricultural engineering, mechanical engineering principles to food materials. For Indonesia, the role of national logistics agency, agricultural ministry may follow success stories of several countries which have achieved their food security, and diversification,” said Vera. (sl/IM)

Digg This
Reddit This
Stumble Now!
Buzz This
Vote on DZone
Share on Facebook
Bookmark this on Delicious
Kick It on DotNetKicks.com
Shout it
Share on LinkedIn
Bookmark this on Technorati
Post on Twitter
Google Buzz (aka. Google Reader)

Leave a Reply

Your email address will not be published. Required fields are marked *