Business Opportunity Agri-food Trend Profile of Indonesia Trade - PowerPoint PPT Presentation

Stefani Amanda Harmani Food Valley Ambassador

• Business Opportunity • Agri-food Trend Profile of Indonesia • Trade and Economy • Trend and Opportunity • Industrial Mapping • Infrastructure Profile of • Distribution • Regulation East Java • Useful Contacts

 Capital city : Jakarta  Major languages : Indonesian, 300 regional languages  Major religion : Islam  Life expectancy : 68 years (men), 72 years (women) [2]  Currency : Rupiah (IDR)  Population : 262 million [1]  Area : 1.9 million km 2 (742,308 sq miles)  Population density :146 per Km 2 (377 people per mi 2 ).  Median age : 28.6 years [1]  54.7 % of the population is urban [1] [1] www.worldometer.inco accessed on 13-2-2017 [2] BBC

 Southeast Asia's biggest economy.  9 th world largest economy based on GDP at PPP [1]  Higher consumer confidence index than US and EU [2]  High purchasing power  25% GDP comes from household spending of food and beverages [1] World Bank 2014 [2] OECD 2014

Modern retail Packaged / stores Urbanization processed food • Fast & good Growing of • Health-conscious young • Lifestyle food population

Lifestyle food Healthy food Packaged food • Local chocolate • Energy bar • Instant noodle RTE Meal Exclusive instant noodle Yogurt Breakfast oatmeal Chips flv.instant noodle Green tea banana chips Yogurt, grain cereals, nuts Wheat, processed meat, Chocolate, new spice flavorings textured soy protein, processed vegetables

[1][2] Import volume growth (2011-2013) 25 20 15 % 10 5 0 Wheat flour Wheat grain Packaged food (snack, Fresh fruit and Processed fruit and Beverages (fruit [1] USDA 2012 nuts, breakfast cereal) vegetables vegetebales juices) [2] GAIN 2013

 Top food product trend in Indonesia : packaged food, healthy food, lifestyle food  Top agrifood import in Indonesia : wheat, fruit&vegetables, packaged food (nuts, cereal grain), beverages (fruit juices)

Name : East Java Province Capital city : Surabaya Area : 47.799,75 Km 2 Population : 39.107.095 people Ethnic groups : Jawa, Madura, Tengger, Osing Religion : Moslim: 96,3%, Protestant: 1,6 %, Catholic: 1 %, Budha: 0,4 %, Hindu : 0,6 % Administrative : Disticts: 29, City: 9, Sub-districts: 664, Villages: area 7.723 Website : http://www.jatimprov.go.id

EAST JAVA Administrative Area CITIES DISTRICTS

EAST JAVA

GDP Structure of East Java 2010 16% 3 Main Pillars in East Java 19,00% Agriculture Economy: Agriculture - Manufacturing Industry Manufacturing Industry - Trade, Hotel, Restaurant (incl. food and beverages 9,00% industries) Services Trade, Hotel, Restaurant 27% - Others (Tourism) 29%

EAST JAVA

 Fruit processing sector is still mainly dominated by small local industries . They are showing a strong growth.  In 2009: 596,198 agro and chemical industries (incl.fruit processing industries).  In 2010: 618,389 agro and chemical industries

Number of fruit and vegetables processing industries (medium and large scales) 140 120 100 80 unit 60 Medium and large • 40 industries are paying more 20 0 attention to this fruit 2011 2012 2013 processing sector. Added value to the final fruit and 99% its capital is owned by • vegetables product national private sector 700.000.000 1% is owned by foreign • 600.000.000 sector 500.000.000 Rupiah (IDR) 400.000.000 300.000.000 200.000.000 100.000.000 0 2011 2012 2013

EAST JAVA

Development of the quality of the roads Electricity power 16000 1800 15772 1600 15500 15380 1400 15000 1200 14500 14368 1000 14000 MVA km 800 13500 13171 600 13000 400 12500 200 12000 0 11500 2011 2012 2013 2014 2012 2013 2014 2015 Damaged roads Average roads Decent roads Excellent roads

EAST JAVA Administrative Area

Indonesia Retail Report Update 2015 (GAIN, 2015)

 Main/ nationwide distributors PT. Sewu Segar Nusantara Jl. Telesonic Dalam (Jl. Raya Gatot Subroto Km. 8) Tangerang, Banten 15810 Phone: +62 21 590 2937 PT Natura Niaga Nusantara Jl. Ancol Barat III No. 1-2, Jakarta Utara Jakarta , Indonesia Phone : +622129986282 +6281213113323 +6285100089989 Indonesia Retail Report Update 2015 (GAIN, 2015)

Consists of:  Fruit Boutique  Hypermarket, Wholesale, Supermarket  High-end supermarket and Specialty stores  More than 60% of their fruit sales are of imported fresh fruit.  Offering wide variety of imported processed fruits, mainly canned, puree, and preserved fruits.

 Mom and pop store/ souvenir shop Wet markets  Main distribution channel for processed fruit Offering common imported fresh fruits products (dried/preserved) in East Java

Go-Jek Motorcycle taxis to transport people and goods Transparent pricing & - tracking system Instant courier - Transport - Shopping (shop and - deliver food, etc)

 Entry Permit (SKI) “All imported food material/ingredients, including processed foods, must obtain an entry permit (SKI) from the head of BPOM (The National Agency for Drug and Food Control) for every shipment. ”  Import Quantity of Horticultural and Animal-Based Food Products “Allocation of import quantities for imported horticultural products will be determined by government every six months.” These regulations limit the availability of imported fresh fruits in retail outlets, as more than 60 percent of hypermarket fruit sales are of imported fresh fruit.

 Duties and Taxes “Most food and agricultural product import duties are 5 percent, most imported products are also assessed a value added tax of 10 percent and a sales tax of 2.5 percent. New tariffs is issued for value-added goods (incl. processed fruits) between 10- 30%.”  Halal Halal products include foods, beverages, drugs, cosmetics, biochemistry products, and genetically modified products. Forthcoming law: “Halal products intended for consumption, usage, or wear to be in accordance with Islamic Law. Halal products will also likely be required to bear a recognized halal certificate and be labeled with a recognized halal symbol. ” Indonesia Retail Report Update 2015 (GAIN, 2015)

 Labeling “Label is written in Indonesian and to note GMO-derived ingredients .” “Supplementary labels (ML registration) should be affixed prior to customs clearance (before arriving in Indonesia). Statements or claims on the benefit of the food product shall only be included if they are supported by scientific facts.” Complying with The National Agency for Food and Drug Control (BPOM) labeling regulations, the new Food Law 18/2012, and the Consumer protection Act of 1999.

 Imported Product Registration Number (ML) “All processed food products imported in retail packaging must be registered with BPOM prior to customs clearance. The registration process should be conducted by a local agent or importer .” Challenges: often non-transparent, costly, & time consuming However, the ML registration processed has improved slightly by the implementation of the E-registration for low risk processed food products since early 2013.

 Imported Fruits  Passing the laboratorium observation according to Codex International Food Standards (CIFS) from WHO.  Free of Plant Pests  quarantine at the port

EAST JAVA

 PT Aneka Food Tatarasa Industri  PT JNI Mitrajaya Surabaya and Malang Business : fruit chips Business: Distributor and Logistic Company in Phone +62 335 422300/421977 / Fax +62 335 421181 Surabaya and Malang, incl. fruit products Phone : +62 31 7495605  PT Pangan Lestari Business: frozen fruit  PT Primafood Pangan Indonesia Phone +62 341 353430 / Fax +62 341 353430 Business: fruit cocktail Address: Jl. Embong Gayam 11 Embong Kaliasin  PT Lasalle food del monte (multinasional)/ PT.Mitra Genteng, Surabaya, Jawa Timur Sarana Purnama Phone +6285227067157 / +62281-641582  PT Interfood Sukses Jasindo Surabaya  PT Koki Indocan Business : fruit, vegetable processing and canned Phone: (+62343) 633016 / Fax: (+62343) 631769

 PT Suryajaya Abadi Perkasa  CV Jaya Wijaya Address: Jl. Raya surabaya Probolinggo Km 90, Jawa Business: fruit chips Timur Phone: +6231 8700365 Phone: (+62335) 421172  Sumber Gizi Sejahtera  Ecofarm Cipta Karya, CV Business: fruit chips Address: Jl. Kalimasada V No. 10, Malang, Jawa Timur Phone: +62321 495160 65122 Business : Agricultural product  UD. Sidojoyo A.G. Phone: (+62341) 3419867 / Fax: (+62341) 327451 Business: canned fruits and vegetables Phone: +62333 462438  UD Kaisar Tahu Business: processed fruits Phone: +62334 885230

 Indonesian Tropical Fruit Research Institute (ITFRI)  Kraton Research Station Research station for mango germplasm and pomelo germplasm  Pandean Research Station Research station for mango germplasm  Cukurgondang Research Station Initially established by Dutch in 1938 and currently known having one of the most complete mango germplasm in the world, particularly in South East Asia.