1Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Overview on
Agri-Food Processing & SMEsin Indonesia
Purwiyatno HariyadiSoutheast Asian Food & Agricultural Science & Technology (SEAFAST) Center,Bogor Agricultural UniversityBOGOR, INDONESIAphariyadi.staff.ipb.ac.id
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Overview on
Agri-Food Processing & SMEsin Indonesia
Presented at - WORKSHOP Australia Indonesia Center (AIC)-Food & Agriculture
Cluster, 23-25 Feb 2015, IPB BOGOR
2Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Keywords(What I’ve heard and learned so far…………)
- SMEs (MSMEs)?- Food security?- Trade (international trade)?- Global value chain?
- Shared interests – Shared challenges?- etc.
Overview on
Agri-Food Processing & SMEsin Indonesia
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
GDP Growth of Manufacturing Industries Non-Oil/Gas in 2007 - 2013
Source : BPS , calculated by Kemenperin
Industry 2007 2008 2009 2010 2011 2012 Q1 2014*
Non Oil Industry 5.15 4.05 2.56 5.12 6.74 6.4 5.56
F&B + tobacco 5.05 2.34 11.22 2.78 9.14 7.74 9.47
*temporary
Overview on
Agri-Food Processing & SMEsin Indonesia
3Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Enterprises Classification
Law No 9, 2005
Micro•< IDR 200 Mio•1-4 employees
Small•IDR 200 Mio– 1 B•5-19 employees
Medium•IDR 1 – 5 B•20-99 employees
Large• IDR > 5B•> 100 empl
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
LE
Micro E
SE
ME
Micro, Small & Medium
(MSME) =48.93 Mio Units
Pyramid of Enterprises (BPS 2006)
4Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
LE
Micro E
SE
ME
0.1%
99.9%
Pyramid of Enterprises (BPS 2006)
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
99.9%
0.1%
Employments
GDP
1778.75 T IDR(53,28%)
46,72%
85,7 Mio(96,18%)
3,82%
Tilted : 96% absorption of employmentsBUT, “only” contributes to 53% GDP.
Characteristics of MSME (BPS 2006)
5Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
53,57% MSME: Food & Agriculture sectors
0.1%
53,6% 46,4%
Characteristics of MSME (BPS 2006)
Food Security
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food Security is the fulfillment of food for the state up to the individuals, that is reflected by food availability that is sufficient, both in quantity and quality, safe, diverse, nutritious, prevalent and affordable as well as not conflicting with religion, belief and culture, to live healthy, active and productive in a sustainable manner.
Food Law No 18, 2012
Food Security
6Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food Security is the fulfillment of food for the state up to the individuals, that is reflected by food availability that is sufficient, both in quantity and quality, safe, diverse, nutritious, prevalent and affordable as well as not conflicting with religion, belief and culture, to live healthy, active and productive in a sustainable manner.
Food Law No 18, 2012
Food SecurityKeywords of
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food SecurityAssuring
Intake sufficiency Quality of household food processing,
sanitation and hygiene Quality of drinking water Quality of child care
Consumption sufficiency
Physical, economic and social accessibility Compliance to preferences Compliance to food habit and culture Compliance to belief and religion
Accessibility
Quantity Quality Nutrition adequacy Variety Safety
Food availability
7Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food SecurityAssuring
Intake sufficiency Quality of household food processing,
sanitation and hygiene Quality of drinking water Quality of child care
Consumption sufficiency
Physical, economic and social accessibility Compliance to preferences Compliance to food habit and culture Compliance to belief and religion
Accessibility
Quantity Quality Nutrition adequacy Variety Safety
Food availability
Food Quantity: prerequisite of Food Security
Quantity
1
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food SecurityAssuring Food Quantity:
prerequisite of Food Security
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Availability of raw material? import?- Availability of ingredients? Esp. Functional
ingredients import?- Availability of packaging material? import?- Availability of machineries ? import?- ?????
1
8Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food SecurityAssuring Food Quantity:
prerequisite of Food Security
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Availability of raw material? import?- Availability of ingredients? Esp. Functional
ingredients import?- Availability of packaging material? import?- Availability of machineries ? import?- ?????
Are these shared interests/challenges?
1
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food SecurityAssuring Food Quantity:
prerequisite of Food Security
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Availability of raw material? import?- Availability of ingredients? Esp. Functional
ingredients import?- Availability of packaging material? import?- Availability of machineries ? import?- ?????
Are these shared interests/challenges?
1
9Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Availability of raw material? import?- Availability of ingredients? Esp. Functional
ingredients import?- Availability of packaging material? import?- Availability of machineries ? import?- ?????
IF …..YES, these are shared interests/challenges
1 How AIC Food & Agricultural Cluster can do about this?
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Value-adding partnership?- ETC
IF …..YES, these are shared interests/challenges
Addressing
How AIC Food & Agricultural Cluster can do about this?
1
10Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Development of intermediate ingredients (of Australia & Indonesia interest)?- Dried fruits? - Dried/powdered herb/spices, local flours
(tubers, roots, etc.)- ETC
IF …..YES, these are shared interests/challenges
Addressing
How AIC Food & Agricultural Cluster can do about this?
1
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Development of local food ingredients (of Australia & Indonesia interest)?- Tropical fruits-based ingredients (extracts,
flavors, concentrates, etc.)- Starch-based ingredients (modified starch,
thickeners, etc.)
IF …..YES, these are shared interests/challenges
Addressing
How AIC Food & Agricultural Cluster can do about this?
1
11Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Development of local food ingredients (of Australia & Indonesia interest)?- Tropical fruits-based ingredients (extracts,
flavors, concentrates, etc.)- HHP (CSRIO)
IF …..YES, these are shared interests/challenges
Addressing
How AIC Food & Agricultural Cluster can do about this?
1
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Development of local food ingredients (of Australia & Indonesia interest)?
- Soybean? Cattle??? SCE???- Jambi? Sulawesi???
IF …..YES, these are shared interests/challenges
Addressing
How AIC Food & Agricultural Cluster can do about this?
1
12Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Development of local food ingredients (of Australia & Indonesia interest)?
- Soybean? Tempe?- Development of “tempe technology”, high value
product, high value ingredients, etc.
IF …..YES, these are shared interests/challenges
Addressing
How AIC Food & Agricultural Cluster can do about this?
1
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Issues of Agri-Food Processing and SMEs in assuring food quantity:
- Development of local food ingredients (of Australia & Indonesia interest)?
- Cattle? Meat?- Development of “cattle-industry”????
IF …..YES, these are shared interests/challenges
Addressing
How AIC Food & Agricultural Cluster can do about this?
1
13Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food SecurityAssuring
Intake sufficiency Quality of household food processing,
sanitation and hygiene Quality of drinking water Quality of child care
Consumption sufficiency
Physical, economic and social accessibility Compliance to preferences Compliance to food habit and culture Compliance to belief and religion
Accessibility
Quantity Quality Nutrition adequacy Variety Safety
Food availability
Food Safety: prerequisite of Food Security
Safety
2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food Safety ?
FOODSECURITY
?
• Indonesia : Double Challenges of Food Safety
2
14Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
FOODSECURITY
?
• Indonesia : Double Challenges of Food Safety
Food Safety ?2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Challenges of “Domestic” Food Safety
• Microbial problem unsanitary conditions• Uses of unsafe-chemicals• Unsafe use of food additives
Food Safety ? – domestic issues2
15Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Roots of the problem?• Poverty lack of foods• Food production system is dominated by
SMEs (and household industries)• Lack of basic food safety infrastructure
(clean water, clean ice, cold chain system, etc.)
• Lack of capacity of human resources (Producers, consumers, government officials)
• Lack of funding
Food Safety ? – domestic issues2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
• Global food trade will likely to increase due to expected increases in global income levels
• Consumers take advantage of lower prices and greater seasonal availability of some foods abroad
• ~ global value chain
Food Safety ? ... International Issues?2
16Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
• World Integrated Trade Solution Database (http://wits.worldbank.org/wits/gpfad.html)
• Already ~ 40% of all trade in food agriculture, fisheries occurs between developing & developed countries
Food Safety ? ... International Issues?2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Indonesian processed food products of export (MOT RI, 2010)
Food Safety ? ... International Issues?2
17Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food Safety ? ... International Issues?Indonesian processed food products of export (MOT RI, 2010)
2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Food Safety ? ... International Issues?
• United Nations Industrial Development Organization (UNIDO)
• Norad – Norwegian Agency for Development Cooperation
• Institute of Development Studies (IDS), Brighton, UK
2
18Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Number of
EU rejectionsof food and
feed exportsfrom Indonesia,
2002-2008
Food Safety ? ... International Issues?2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Number of
US rejectionsof food and
feed exportsfrom Indonesia,
2002-2008
Food Safety ? ... International Issues?2
19Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
• Driving forces for trade is economic gain
International trade is important for economy of developing country
However, increasingly restrictive/stringent international food safety standard
Limit market access
Could incur significant export/income loss
Food Safety ? ... International Issues?2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
For Indonesia, average number of rejection each year:• 40 for the EU,• 377 for the USA,• 38 for the Japan, and• 50 for Australia
Food Safety ? ... International Issues?2
20Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
For Indonesia, average number of rejection each year:• 40 for the EU,• 377 for the USA,• 38 for the Japan, and• 50 for Australia
Food Safety ? ... International Issues?2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
WHY?•Quality•Safety
~ MSME Issues ?
For Indonesia, average number of rejection each year:• 40 for the EU,• 377 for the USA,• 38 for the Japan, and• 50 for Australia
Food Safety ? ... International Issues?2
21Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
WHY?•Quality•Safety
~ MSME Issues ?
For Indonesia, average number of rejection each year:• 40 for the EU,• 377 for the USA,• 38 for the Japan, and• 50 for Australia
Food Safety ? ... International Issues?2
????? Are these shared interests/challenges?
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
For Indonesia, average number of rejection each year:• 40 for the EU,• 377 for the USA,• 38 for the Japan, and• 50 for Australia
Food Safety ? ... International Issues?2
????? Are these shared interests/challenges?
YES…..The shared interest/challenges:
How to make Indonesia-Australia stronger (& trusted) trading Partners(reducing export refusals)
22Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
If YES… Is there any AIC scheme to address this2
?
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Empowerment /capacity building program?
If YES… Is there any AIC scheme to address this2
23Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
Empowerment /capacity building program?
If YES… Is there any AIC scheme to address this2
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
2 Empowerment /capacity building program?
If YES… Is there any AIC scheme to address this
24Purwiyatno Hariyadi …. [email protected]
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
2 Empowerment /capacity building program?
If YES… Is there any AIC scheme to address this
Workshop AIC Food & Agriculture ClusterIPB International Convention Center, Bogor, 23-15 February 2015
TERIMAKASIH