Dewanti A. Wardhani, Jakarta – Home to 250 million people, Indonesia is a tropical country with the perfect climate and landscape for cultivating a range of edible plants to be made into food products and ingredients.
With this potential, players in the food industry see Indonesia, the world's fourth-most populous country, not only as a thriving market but also as a potential production and manufacturing base.
However, as of today, many local food producers still import many of the ingredients used in their products, raising concerns over the adequacy of government support for the utilization of the country's abundant natural resources, according to Indonesian Food and Beverages Association chairman Adhi S. Lukman.
"Food and beverage manufacturers in Indonesia still import many of their ingredients. Indonesia has great potential and we want to explore that," Adhi told reporters during a recent discussion on foodstuffs in Jakarta.
Food ingredients for manufacturers range from the basics such as salt and sugar and nutrients such as prebiotic and polyphenol, to vitamins, minerals, fruit and plant extracts, food additives such as flavor and color enhancers and preservatives.
The food and beverage industry, which Adhi said was one of the largest contributors to the nation's economy, largely relies on ingredients, meaning such commodities are always in demand. The government previously predicted that the food and beverage industry would grow by 7.4 to 7.8 percent this year, and would become one of the key drivers of growth.
Several large names supplying food ingredients to manufacturers include German-based chemical producer BASF, local firm PT Indesso Aroma and British agribusiness Tate & Lyle.
It is problematic, Adhi said, that food ingredient companies operating in Indonesia still look overseas to find their materials. Despite its perfect landscape, Indonesia's agriculture is both unproductive and undiversified.
"The government should see this and pay more attention to developing its potential. Indonesia should look to Thailand to see how the government there supports farmers," he said.
Agriculture in Thailand is highly diversified and productive, and the country exports many of its crops internationally. The Thai government has many farmer-friendly policies to encourage farming.
Such policies include investing in education for farmers, rural roads and education, and providing credit through the Bank for Agriculture and Agricultural Cooperatives.
"Investment in ingredient manufacturing and the food and beverages industry is extremely easy to find. We just need to secure more supply and this is where the government can come in," Adhi said.
Similarly, Indesso deputy director Arianto Mulyadi said food ingredients manufacturers in the country were often faced with shortages if they relied on local supply.
Indesso's main business in Indonesia is clove oil extract, which has many derivatives such as vanillin and propenyl guaethol. The company works closely with hundreds of plasma clove farmers to secure its supply.
The food and beverages industry, Ari said, is also rigidly regulated. Indesso is set to participate in the upcoming Food ingredients Asia (Fi Asia) 2016, where it expects to meet and form partnerships with other enthusiastic business players.
Fi Asia 2016 organizer UBM Pameran Niaga Indonesia president director Christopher Eve said the exhibition expected 650 exhibitors and 15,000 participants. Fi Asia will also organize a "matchmaking" event for businesses, as well as seminars.
Source: http://www.thejakartapost.com/news/2016/08/01/businesses-look-hungrily-ri-ingredient-market.html