Food and Beverage Industry is Projected to Grow Positive in the Political Year

INDUSTRY.co.id - Jakarta, Momentum of Pilkada has the potential to increase consumption of local food and beverage products (mamin).

This makes the national Food and Beverages industry in 2018 as the political year, with the election of regional heads (pilkada) in various regions in Indonesia, is believed to continue to grow positively.

Director General of Agro Industry at the Ministry of Industry, Panggah Susanto, said that the growth trend of Food and Beverages industry is above 7 percent, with the existence of rules or policies that support the increase of production.

We are projecting the performance of the Food and Beverages industry this year at 8-9 percent, as a moderate target, he said.

Based on Ministry of Industry records, the rate of Food and Beverages industry in the third quarter of 2017 reached 9.46 percent or above the national economic growth of about 5.06 percent in the same period.

Thus, the average of the first quarter III-2017, this sector is estimated at 8.24 percent, said Panggah.

According to him, during this Food and Beverages industry contribute significantly to the national economic growth, especially its contribution to Gross Domestic Product (GDP) non-oil industry.

In quarter III / 2017, the Food and Beverages industry provided up to 34.95 percent or the highest compared to other sub-sectors.

Then, another major contribution seen from the export value of Food and Beverages products in 2017 reached USD31, 8 billion (including oil palm).

Aside from palm oil, amounting to USD11, 5 billion.

"So that the trade balance surplus when compared with the import value of Food and Beverages products in the same period about USD9, 88 billion," said Panggah.

In fact, the contribution of employment in the manufacturing sector is dominated by the Food and Beverages industry of 3.3 million people or 21.34 percent.

Meanwhile, in the period of January-September 2017, the investment value of Food and Beverages industry reached Rp27.9 trillion for domestic investment (PMDN), while the value of investment for foreign investment (PMA) amounted to USD1, 4 billion.

Therefore, it is absolutely necessary to synergy the programs and activities between the government and stakeholders in the development of national Food and Beverages industry, starting from the primary sector as raw material provider, to the processing industry sector and monetary sector, Panggah said.

Meanwhile, in order to accelerate competitiveness and accelerate industrialization, strategic steps such as access to raw materials, logistics and distribution systems, and research and development activities are also needed. This effort also supports the implementation of Industry 4.0.

Our mining industry has prepared its infrastructures, including technology, supporting infrastructure, and competence of industrial human resources. So that the sector is more competitive in both domestic and foreign markets, he added.

Chairman of the Association of Food and Beverage Entrepreneurs of Indonesia (GAPMMI) Adhi Lukman said, many of its members who have implemented automation by using robotic systems that integrate with the Internet in operation.

This step is to welcome the readiness in the coming era of the fourth industrial revolution.

According to him, the implementation of Industry 4.0 does not reduce labor, even the company opens new job opportunities to support the use of the latest technology in an effort to increase production.

Adhi hopes all parties should be ready to face the development of Industry 4.0 and the digital economy, including in building human resource competence and the establishment of regulations that support the business world.

Changes in mindset or soft skills are mainly, in addition to the increase in hardware, he said.

Adhi also believes, the key to growth in 2018 is coordination in managing policies and regulations that are conducive, in 2018 as the political year.

If that happens, GAPMMI is optimistic that the Food and Beverages industry can grow up to 10 percent or up from the previous year.

The year 2018 is the political year, where generally money supply will increase and is expected to also boost consumption of food and beverages.

The government needs to ensure that elections held in 171 areas are safe and peaceful, he hoped.