Food and Beverage Industry Flourishing Amidst Political Climate, Gapmmi Forecasts 7-10% Growth

Jokowi Urges Government Agencies to Purchase Local Products to Boost Economy 15 March 2023 (photo: Raul Gonzalez Escobar - Unsplash)

In the current business landscape, the food and beverage (mamin) sector is emerging as a favored industry, experiencing a surge in interest and investment. This trend is not exempted in Indonesia, where the mamin industry is anticipated to witness a substantial growth rate of around 7 to 10 percent in the present year, coinciding with the political events taking place.

Gapmmi, the prominent Indonesian Food and Beverage Association, has projected this significant growth, and interestingly, it mirrors the pre-pandemic performance of the mamin industry.

Gapmmi’s Chairman, Adhi S. Lukman, confidently articulated that the upcoming year, especially during the period from February to October, is anticipated to be a favorable time for the industry, with no major hindrances impeding progress. In fact, the industry is expected to return to its pre-pandemic growth levels, hovering between 7 to 10 percent, as it moves towards normalization.

Adhi’s optimism is backed by the comparison of this year’s projected growth rate with the industry’s performance in previous years: 2.54 percent in 2021, 4.9 percent in 2022, and 5.3 percent in the first quarter of 2023.

Notably, political years in Indonesia often serve as a golden opportunity for the mamin sector to flourish. Adhi stressed that the previous political periods and elections have been nothing short of a blessing for the industry, leading to robust growth and improved prospects.

The positive influence of the political climate is predicted to extend even beyond the election period and continue to impact the mamin industry’s performance several months before the general elections (Pemilu) take place or the dawn of the year 2024.

Furthermore, Adhi’s projections for the mamin industry’s growth in 2023 initially ranged from 5 to 7 percent, primarily fueled by the upcoming political events in 2024. The Chairman remains optimistic about the prospects, emphasizing that the industry’s growth rate has been a subject of positive revision, and it currently stands at a robust 7 percent.

An important factor contributing to the mamin industry’s promising outlook is Indonesia’s progress in managing the Covid-19 pandemic. As the country gradually moves towards economic recovery since mid-year, the mamin sector has been benefiting from the improving situation. The pandemic-induced challenges that previously affected the industry’s performance are now being mitigated, leading to increased confidence and potential for growth.

Nonetheless, Adhi acknowledges that while the political climate presents opportunities for the mamin industry, it also necessitates mindful navigation to ensure sustained growth. As the industry basks in the favorable atmosphere, it must also address economic recovery post-pandemic and tackle export market challenges arising from geopolitical uncertainties.

Striking the right balance and leveraging the advantages of the political year while simultaneously addressing potential issues is crucial for the mamin sector to thrive and maintain its upward trajectory.