Indonesia’s Food Industry Forecast to Grow 7% Despite Rupiah Pressure

JAKARTA, Jakartaweekly.com— The Indonesian Food and Beverage Producers Association (GAPMMI) projects the country’s food and beverage (FnB) industry will still be able to grow by around 7 percent by the end of the year despite mounting pressure from the rupiah’s depreciation against the U.S. dollar.

GAPMMI Chairman Adhi S. Lukman said the optimistic outlook is supported by a number of government policies aimed at reducing production costs, including lower industrial gas prices and the temporary exemption of import duties on plastic products.

“I believe the industry’s growth can remain around 7 percent through the end of the year, which would be even better than last year,” Adhi said in Jakarta on Thursday, July 2, 2026.

Despite the positive outlook, Adhi acknowledged that the industry continues to face several challenges, particularly the weakening rupiah.

According to him, many food and beverage manufacturers still rely on imported raw materials because locally sourced ingredients have yet to consistently meet the quality and processing standards required for large-scale industrial production.

“There are many local raw materials that could actually be utilized, but they are not yet ready for industrial applications. That is why we still depend on imported ingredients,” he said.

The industry’s reliance on imported raw materials means that the weakening rupiah has a direct impact on rising import and logistics costs. Adhi therefore called for closer collaboration between the government and industry players to develop domestic raw materials into industrial-grade ingredients.

He expressed hope that such efforts would reduce the food and beverage industry’s long-standing dependence on imported raw materials.

FI Asia Indonesia 2026

Against this backdrop, Food Ingredients (FI) Asia Indonesia 2026 will be held from Sept. 16 to 18, bringing together manufacturers, suppliers, researchers and technology providers to showcase innovations in the food industry.

The exhibition will highlight advances in product formulation, sustainable ingredients, digital technologies and collaboration across the food supply chain. Organizers expect the event to feature around 700 international brands and attract more than 24,000 visitors from across the region.

Rose Chitanuwat, Regional Portfolio Director – ASEAN at Informa Markets, said FI Asia Indonesia 2026 is designed not only as a trade exhibition but also as a platform that brings together stakeholders to foster innovation and sustainability in the food industry.

“FI Asia Indonesia 2026 is a strategic platform that brings together innovation, industry leadership, and sustainability within a single food ecosystem. Our theme, Elevating Food Standards for a Healthier, Greener Future, reflects the industry’s urgent need to transform toward a healthier and more sustainable future,” Rose said.

She added that the exhibition will also involve startups, food manufacturers, academics and students to explore ingredient innovation driven by science and technology.

Through FI Asia Indonesia 2026, organizers hope to strengthen consumer confidence, support public health goals and contribute to building a more sustainable food ecosystem in Indonesia and across the region.