Erfan Maruf, Jakarta – Strengthening household purchasing power and creating more jobs should be key priorities for Indonesia as President Prabowo Subianto's government enters its second year, the country's food and beverage industry association said.
Adhi S. Lukman, chairman of the Indonesian Food and Beverage Entrepreneurs Association (Gapmmi), said the industry continued to perform relatively well, growing about 6.5% in the first half of 2026. "On average, however, overall growth is still above economic growth. I remain optimistic that the food and beverage industry will continue to perform well," Adhi said Friday.
However, growth has not been evenly distributed across the industry, with some food categories expanding strongly while others recorded moderate or weaker growth, he said.
Investment in the food and beverage sector has also continued to increase, including from countries such as China, he said. Higher investment is important because it can boost economic activity through job creation and increased industrial value-added.
"When there is investment, the industry will absorb labor and increase value-added. I strongly support increased investment," he said.
Indonesia recorded Rp1,010.6 trillion (around $60 billion) in investment realization in the first half of 2026, up 7.2% from a year earlier, according to the Investment Ministry. The investment generated 1.45 million jobs.
But investment alone will not be enough to sustain economic growth, Adhi said. The government and businesses also need to ensure that economic growth translates into stronger household purchasing power.
"We all know now that the burden on society, particularly purchasing power, needs to be addressed. We need to create jobs," he said.
Indonesia's economy grew 5.29% year-on-year in the second quarter, while household consumption grew 5.06%, according to the National Economic Council. The figures underscore the importance of domestic consumption to an economy in which household spending is a major driver of growth.
Adhi said job creation was becoming increasingly important as some sectors continued to reduce their workforces through layoffs. Indonesia also has a large informal workforce whose incomes are relatively unstable.
"We still have many people in informal jobs. Informal workers do not have stable incomes, so sometimes their earnings are insufficient," he said.
Unstable incomes can weaken people's ability to maintain consumption, making job creation a shared priority for the government and private sector, Adhi said.
"This is our shared homework – the government's and the business community's – to create jobs," he said.
Indonesia's unemployment rate stood at 4.65% in May, while the average employee wage was Rp3.39 million a month, according to Statistics Indonesia (BPS). The number of employed people rose by 522,000 from February to 148.19 million.
To support investment and employment, Adhi called on the government to continue improving the business climate through more business-friendly regulations.
Such policies would help attract investment, allow industries to expand production capacity and increase employment, he said.
"Therefore, the business community needs to be supported by more business-friendly regulations so that we can better support economic growth," Adhi said.