Indonesia Accelerates Food Industry Downstream Development

RRI.CO.ID, Jakarta: The Ministry of Industry continues to strengthen Indonesia’s food industry structure through accelerated downstreaming, greater value addition to local raw materials, stronger quality standards, and expanded partnerships and access to international markets. The efforts are becoming increasingly important as changing global consumer preferences place greater emphasis on health, food safety, quality, and sustainability.

According to 2025 Manufacturing Value Added (MVA) data released by the World Bank, Indonesia’s manufacturing value added reached USD275.61 billion. This placed Indonesia 12th globally and ranked it first in Southeast Asia, ahead of Thailand, Vietnam, Singapore, and Malaysia.

Deputy Minister of Industry Faisol Riza said the achievement provides an important foundation for expanding Indonesia’s role in the regional and global food industry value chain.

“Our manufacturing industry is becoming increasingly robust. Going forward, this strength must be translated into products with greater added value, quality, innovation, and competitiveness in global markets,” Faisol said at the opening of Food Ingredients Asia (Fi Asia) Indonesia 2026 recently, as quoted in an official statement on Thursday, 17 September 2026.

He said the food and beverage industry is one of the strategic sectors playing an important role in strengthening the national manufacturing structure. Therefore, the government is committed to developing a food industry ecosystem capable of meeting consumer demands while complying with international market standards.

“We are committed to strengthening a halal, healthy, innovative, and sustainable food industry ecosystem. The organization of Food Ingredients Asia (Fi Asia) Indonesia 2026 is an important opportunity to bring together the government, industry players, academics, and international partners to strengthen collaboration, including in technology and knowledge transfer,” he said.

The government has set a target of increasing Indonesia’s food and beverage exports to USD83.08 billion by 2029, with average annual growth of 10.9 percent. To achieve this target, the Ministry of Industry is focusing its policies on accelerating downstream processing based on local natural resources, increasing factory utilization to 70 percent, boosting exports of high-value-added downstream products, and expanding market penetration into 20 new export destinations across the Americas, Eastern Europe, the Middle East, and South Asia.