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Indonesian government pushes for innovations in food, beverage industry

An anticipated change in food consumption patterns during the post-pandemic recovery period is pushing the Indonesian government to try innovations in ramping up existing food and beverage production methods. 

The Indonesian government in a statement encouraged agencies and key figures in the food and beverage industry to prepare for an increase in public demand by developing more technologies. The announcement comes as this strategic sector is expected to recover and bolster growth in the coming months. 

Abdul Rochim, Director General of Agro-Industry of the Ministry of Industry, explained that the health crisis has made a huge dent in the economy and also stirred a substantial change in people’s consumption patterns. For one, fewer people are lining up to shop and shift towards getting their needs through online delivery services. He added, “meanwhile, people who are used to eating food in restaurants prefer to pack food or order food online.” 

Because of these changes in consumer behaviour, the food and beverage sector needs to be more proactive in utilising innovation to cater to consumer demands in a modern way. The adoption of innovative tools also allows consumers to pay more attention to health and safety protocols during the new normal. The Director General noted that this sector which is closest to society should be able to take advantage of the benefits of tech to provide ease and convenience to customers. 

Some of the proposed changes are not mainly in the delivery phase but are found also in the marketing, logistics and production systems of the industry. He mentioned that in marketing, digitalisation tools are key in reaching out to both producers and consumers. Hence, new digital tools must be implemented in this sector. 

The vision of the Ministry of Industry is in keeping with efforts set forth under the Industry 4.0 concept in online marketing. The logistics sector can also be able to reap the benefits of using modern systems. To explain, the Director General noted that, “marketing that was previously carried out conventionally has shifted to using online marketing innovations. Meanwhile, the logistics sector also needs to be introduced to contactless logistics or a system that reduces human interaction so that consumers feel safe.” 

In the production industry, the Ministry admitted that this industry needs new digital solutions, particularly in processed food technology and product diversification. Innovations in the production of frozen food and packaging methods to ensure item durability should receive an upgrade from tech. Food manufacturers also have a lot on their plate in ensuring that they improve finished products that are readily processed at home.  

To support manufacturers, the Ministry announced that it has teamed up with the Association of Indonesian Food and Beverage Entrepreneurs (GAPMMI), Under the partnership, the Ministry shall help in compiling a book called ‘Guidebook for the Adaptation of New Habits in the Food Industry’. The project is expected to help manufacturers and other players in the food industry as they embrace their digital transformation.  

These developments are all part of government efforts to boost economic growth on the back of significant contributions from the food sector. This is in line with directives laid out under the Making Indonesia 4.0 roadmap, where, In addition to the food and beverage sector, the government aims to foster economic growth by strengthening the electronics and manufacturing industries. 

The results of such efforts were seen in the third quarter of 2020 when the food industry was recorded to be the biggest contributor to Indonesia’s gross domestic product, locking in an increase of 7.02%. Food and beverage also had the highest export value in manufacturing, as it reached US$ 27.59 billion in the January-November period last year. 

To further ramp up food production techniques, the government has earlier said in a statement that the Agricultural Research and Development Agency is on the lookout for technological advances in agricultural methods to drive an increase in food production.

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