Why GAPMMI Urges Investment in Food & Beverage Materials

Food and Beverage Industry Calls for Greater Investment in Domestic Inputs

Tempatdonasi.com – Indonesia’s food and beverage industry is seeking stronger investment in locally available raw materials as producers prepare for rising consumer demand and tougher global competition. The sector expanded by 6.5 percent during the first half of 2026, underlining its role as one of the country’s most active manufacturing industries.

Speaking at the opening of the Food Ingredients Asia exhibition at JIExpo Kemayoran on Wednesday, September 16, 2026, Indonesian Food and Beverage Association (GAPMMI) Chair Adhi S. Lukman said additional capital for domestic ingredients could help the industry advance more quickly.

This [increased] investment will accelerate the food and beverage industry in Indonesia.

For manufacturers, greater availability of domestic food and beverage inputs can support production planning at a time when buyers are asking for more than basic affordability. Consumers are placing increasing importance on products that are healthier, safer, easier to use, and produced with sustainability in mind. Meeting those expectations requires dependable access to a broad range of ingredients and materials.

A Large Market With Expanding Needs

Indonesia remains a major consumer market, creating substantial demand for food and drink products across many categories. Adhi said ingredient supply must keep pace with the needs of a sector that continues to grow and diversify. The issue is not limited to supplying factories; it also concerns the ability of businesses to develop products that respond to changing preferences without sacrificing quality or competitiveness.

The food and beverage business has broad effects throughout manufacturing. It supports employment, works with local enterprises, and links Indonesian producers to supply networks in the region and beyond. A stronger materials base can therefore have implications for companies across the production chain, from ingredient suppliers and processors to packaging, logistics, and retail businesses.

Adhi identified three priorities for the industry: resilient supply chains, innovation that adds value, and collaboration. These areas are increasingly connected. A company may have a promising new product, for example, but still face difficulty scaling production if supplies are unreliable or if partnerships across the value chain are weak.

Producers are required to remain competitive while building a reliable and robust supply chain.

The emphasis on resilience reflects the importance of continuity in food production. Manufacturers need ingredients to arrive consistently and meet required standards, while also retaining enough flexibility to adjust when demand shifts. Investment in raw materials can help address those challenges by strengthening the domestic foundation of the industry.

Exports and Employment Highlight the Sector’s Scale

Deputy Minister of Industry Faisol Riza said Indonesia is now Asia’s second-largest food and beverage exporter after China. Indonesia holds a 23 percent share of the regional market, placing the sector among the country’s important contributors to trade and industrial activity.

Its export profile is led by commodities with established international demand, including palm oil, fishery goods, margarine, and processed cocoa. These products illustrate the range of Indonesia’s food and beverage output, spanning agricultural processing, marine products, edible fats, and cocoa-based manufacturing.

These exports are dominated by leading commodities, such as palm oil, fishery products, margarine, and processed cocoa.

Investment figures also show the scale of business activity in the sector. Realized investment in food and beverages amounted to Rp26.82 trillion during the first six months of 2026. The industry employed about 6.94 million people, equal to 34.72 percent of Indonesia’s overall manufacturing workforce.

That workforce share makes the sector especially important for industrial employment. Its performance can affect not only large manufacturers but also the wider ecosystem of suppliers and smaller businesses that support production and distribution. Continued expansion may create opportunities, but it also raises the need for production systems that can maintain standards and meet market requirements.

Standards Become a Competitive Issue

Food and beverage companies are operating amid tighter trade restrictions and changing requirements in export markets. Environmental rules and anti-deforestation measures, stricter food-safety expectations, and evolving consumer demands are shaping the conditions under which products are made and sold.

Faisol stressed that improving food standards should be viewed as more than an administrative obligation. For producers, standards can influence access to markets, consumer confidence, and the ability to compete as international requirements become more detailed.

Improving food standards is not just about administrative compliance.

The need to combine compliance with commercial competitiveness puts added focus on ingredients, manufacturing processes, and supply-chain coordination. Businesses that can maintain consistency, traceability, and quality may be better positioned to serve both domestic customers and export markets.

Food Ingredients Asia Brings Industry Players Together

GAPMMI organized Food Ingredients Asia as a meeting point for the sector’s development agenda. The exhibition ran from September 16 through September 18, 2026, and brought together 700 exhibitors from Indonesia and other countries.

The event provided a venue for businesses involved in ingredients and food production to examine opportunities connected to investment, product development, and supply-chain cooperation. As Indonesia’s food and beverage market expands, the industry’s ability to secure materials, innovate, and satisfy rising standards will remain central to its next stage of growth.