Stefani Amanda Harmani Food Valley Ambassador

Profile of Indonesia

• Business Opportunity

• Agri-food Trend

Profile of East Java

• Trade and Economy

• Trend and Opportunity

• Industrial Mapping

• Infrastructure

• Distribution

• Regulation

• 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 km2 (742,308 sq miles)

Population density :146 per Km2 (377 people per mi2).

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.

9th 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

Urbanization

Modern retail stores

• Fast & good

Packaged / processed

food

Growing of young

population

• Health-conscious

• Lifestyle food

Packaged food

•Instant noodle

RTE Meal Exclusive instant noodle

Healthy food

•Energy bar

Yogurt Breakfast oatmeal

Lifestyle food •Local chocolate

Chips flv.instant noodle Green tea banana chips

Wheat, processed meat,

textured soy protein, processed

vegetables

Yogurt, grain cereals, nuts Chocolate, new spice flavorings

[1][2]

[1] USDA 2012

[2] GAIN 2013

0

5

10

15

20

25

Wheat flour Wheat grain Packaged food (snack,nuts, breakfast cereal)

Fresh fruit andvegetables

Processed fruit andvegetebales

Beverages (fruitjuices)

%

Import volume growth (2011-2013)

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 Km2

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

area

: Disticts: 29, City: 9, Sub-districts: 664, Villages:

7.723

Website : http://www.jatimprov.go.id

EAST JAVA

Administrative Area

CITIES

DISTRICTS

EAST JAVA

3 Main Pillars in East Java

Economy:

- Agriculture

- Manufacturing Industry

(incl. food and beverages

industries)

- Trade, Hotel, Restaurant

(Tourism)

16%

27%

29%

9,00%

19,00%

GDP Structure of East Java 2010

Agriculture

Manufacturing Industry

Trade, Hotel, Restaurant

Services

Others

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

• Medium and large

industries are paying more

attention to this fruit

processing sector.

• 99% its capital is owned by

national private sector

• 1% is owned by foreign

sector

0

20

40

60

80

100

120

140

2011 2012 2013

un

it

Number of fruit and vegetables

processing industries (medium and

large scales)

0

100.000.000

200.000.000

300.000.000

400.000.000

500.000.000

600.000.000

700.000.000

2011 2012 2013

Ru

pia

h (

IDR

)

Added value to the final fruit and

vegetables product

EAST JAVA

13171

14368

15380

15772

11500

12000

12500

13000

13500

14000

14500

15000

15500

16000

2012 2013 2014 2015

MV

A

Electricity power

0

200

400

600

800

1000

1200

1400

1600

1800

2011 2012 2013 2014

km

Development of the quality of the roads

Damaged roads Average roads Decent roads Excellent roads

EAST JAVA

Administrative Area

Indonesia Retail Report Update 2015 (GAIN, 2015)

Indonesia Retail Report Update 2015 (GAIN, 2015)

Main/ nationwide distributors

PT Natura Niaga Nusantara

Jl. Ancol Barat III No. 1-2, Jakarta Utara Jakarta ,

Indonesia

Phone : +622129986282

+6281213113323

+6285100089989

PT. Sewu Segar Nusantara

Jl. Telesonic Dalam (Jl. Raya Gatot Subroto Km.

8) Tangerang, Banten 15810

Phone: +62 21 590 2937

Consists of:

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.

Fruit Boutique

Wet markets

Offering common imported fresh fruits

Mom and pop store/ souvenir shop

Main distribution channel for processed fruit 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

Business : fruit chips

Phone +62 335 422300/421977 / Fax +62 335 421181

PT Pangan Lestari

Business: frozen fruit

Phone +62 341 353430 / Fax +62 341 353430

PT Lasalle food del monte (multinasional)/ PT.Mitra

Sarana Purnama

Phone +6285227067157 / +62281-641582

PT Koki Indocan

Business : fruit, vegetable processing and canned

Phone: (+62343) 633016 / Fax: (+62343) 631769

PT JNI Mitrajaya Surabaya and Malang

Business: Distributor and Logistic Company in

Surabaya and Malang, incl. fruit products

Phone: +62 31 7495605

PT Primafood Pangan Indonesia

Business: fruit cocktail

Address: Jl. Embong Gayam 11 Embong Kaliasin

Genteng, Surabaya, Jawa Timur

PT Interfood Sukses Jasindo Surabaya

PT Suryajaya Abadi Perkasa

Address: Jl. Raya surabaya Probolinggo Km 90, Jawa

Timur

Phone: (+62335) 421172

Ecofarm Cipta Karya, CV

Address: Jl. Kalimasada V No. 10, Malang, Jawa Timur

65122

Business : Agricultural product

Phone: (+62341) 3419867 / Fax: (+62341) 327451

UD Kaisar Tahu

Business: processed fruits

Phone: +62334 885230

CV Jaya Wijaya

Business: fruit chips

Phone: +6231 8700365

Sumber Gizi Sejahtera

Business: fruit chips

Phone: +62321 495160

UD. Sidojoyo A.G.

Business: canned fruits and vegetables

Phone: +62333 462438

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.

Indonesian Citrus and Sub-Tropical Fruit Reserach Institute (ICSFTRI) Phone: +62 341 592683 / Fax: +62 341 593047 Email: balitjestro@litbang.pertanian.go.id Tlekung Research Station

Research scope: citrus, pomelo, longan strawberry, lychee, avocado, apple, peach/plum, grape, and other miscellaneous plants. The research station has a central collection of sub-tropical fruit plants.

Punten Research Station

This research station has the most complete germplasm of citrus in Indonesia.

Banaran Research Station

Focusing mainly on apple

Kliran Research Station

Focusing on citrus and strawberry

Banjarsari Research Station

The only research station focusing on grape and has the most complete grape germplasm in Indonesia.