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Growth Indonesia’s Food & Beverage Industry in 2015 Revised Down

From Indonesia Investment
March 13, 2015

Turnover in Indonesia’s processed food and beverage industry is expected to grow 4 to 5 percent year-on-year (y/y) in the first quarter of 2015 from the same period last year. Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (GAPMMI), said that factors have been hampering this industry are the winding down of fuel subsidies, the country’s sluggish export sector, the industry’s dependence on imports of raw materials, people’s weakening purchasing power amid low commodity prices, and a weak rupiah.

Due to this weaker context, Lukman expects that turnover growth in full-year 2015 will be limited at about 6 percent (y/y), down from an earlier growth forecast of 8 percent (y/y). In fact, he added that if the context deteriorates than this new growth forecast will need to be revised again. Last year, turnover in Indonesia’s food and beverage industry was IDR 1.020 trillion (USD $82 billion), up from IDR 940 billion in 2013.

For detailed story, click here.

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