FOOD & BEVERAGE

certain capacity according to the law: maximum foreign ownership is 95% and recommendation from Minister of Agriculture. ê Cigarette industry: recomme...

0 downloads 234 Views 3MB Size
Indonesian President, Joko Widodo, officially launched the Integrated One Stop Service Centre (PTSP) at Indonesia Investment Coordinating Board (BKPM) in early January 2015. This service aims to smoothen and simplify licensing procedures for investment projects. From now on, investors will not need to visit various ministries or government agencies to obtain necessary permits but can simply turn to the BKPM's OSS centre. In addition, currently the BKPM has established what so called Marketing Officers (MO) who will take care any investment interest to explore investment opportunities in the country. The contact of MO is Directorate of Sector Promotion, BKPM (Phone: [62-21] 525-2008 Ext: 3568, Fax: [62-21] 5288-0390, Email: [email protected]).

FOOD & BEVERAGE

Local Partner

INVESTMENT

GOVERNMENT PROVISIONS AND SUPPORTS The government supports foreign direct investment in the F&B industry by:

ê ê ê

Offering income tax incentives, and import duty incentives for certain industrial materials. Providing various tax and tariff exemptions for manufacturing machineries. Setting and/ or encouraging the establishment of industry zoning such as presented in the following map:

Kalimantan Corn, Cocoa, Coconut (Nort Kalimantan). Rice, Banana (East Kalimantan). Patin Fish (South Kalimantan)

Fishery product processing business (UPI) Fermentation processing of fishery products Reduction/ chemical process of fishery products Surimi and Jelly Fish processing-Food Processing industry Powdered milk and sweetened condensed milk processing industry Ÿ Tobacco drying and processing industry Ÿ Ÿ Ÿ Ÿ Ÿ

Indonesia Investment One Stop Service (OSS) Center and Marketing Officer

Sulawesi: Corn (South Sulawesi ), Cacao (West Sulawesi ), Fish Processing (North Sulawesi ).

Sumatera: (Bengkulu Coffee)

Bali-Nusra: Cow (Bali), Cow (NTB)

Opportunities for Partnership in food processing industries:

Maluku and Papua: Cacao (Papua)

Source: BKPM, 2014

Investment in the F&B sector is opened widely, with foreign ownership as follows: ê Industry processing of plantation products as same as or above certain capacity according to the law: maximum foreign ownership is 95% and recommendation from Minister of Agriculture. ê Cigarette industry: recommendation from Minister of Industry. Sugar (white crystal, refined crystal, & raw crystal) industry: maximum foreign ownership is 95% and for establishment of new or expansion of sugar mill is required to build its own sugar cane plantation according to the law. ê Horticulture processing industry, maximum foreign ownership is 30%.

Indonesian Food and Beverages Association Website: www.gapmmi.or.id

Indonesian Cocoa Association Website : www.askindo.or.id

Bogor Agricultural University Website : www.ipb.ac.id

Jl. Gatot Subroto No. 44 Jakarta 12190, PO. Box 3186 Indonesia. p. +6221 5292 1334 f. +6221 5264 211 www.bkpm.go.id e. :[email protected]

www.bkpm.go.id

FOOD & BEVERAGE INVESTMENT

ê East Java Province is leading in the investment value of F&B industry

MARKET OPPORTUNITIES

that reached US$ 3,514.32 million in 2014.

Indonesia's operational budget is 39% less per year than that of the other 5 ASEAN countries as shown in the table below: ê Total Operational Cost per Year in Food Processing Factories

South Sumatera, 114.46(1%) Banten, 586.42 (4%)

Riau, 1407.82,(10%) South Sulawesi, 371.77,(3%) North Sulawesi, 102.10, (1%) West Papua, 81.51, (1%) Nort Kalimantan, 613.94,(4%) East Kalimantan, 595.73,(4%) West Kalimantan, 1002.52,(7%) South Kalimantan, 1202.26,(9%) Central Kalimantan, 127.30,(1%)

East Java, 3514.32,(26%) Indonesia

North Sumatera, 140.33 (1%) West Java, 1737.03 (13%) Central Java, 1276.41 (9%) Jakarta ,382.05(3%) Lampung, 161.77,(1%) West Sumatera , 194.15(1%)

Thailand Malaysia Vietnam Philippines

I

f there is one country that offers the ideal balance between booming food and beverage (F&B) demand and an abundance of natural resources – it has to be Indonesia. With a rapidlygrowing and increasingly discerning middle class eager for new and innovative F&B products, Indonesia presents international investors with a vast array of opportunities across the F&B supply chain.

0k

500k

Labour cost

1,000k

1,500k

Utility cost

2,000k

2,500k

3,000k

3,500k

4,000k

Source: BKPM, 2014

4,500k

USD - United States Dollar

Source: fDi Benchmark (Financial Times)

ê Indonesia's growing livestock populations

Nearly all livestock populations in Indonesia have risen over the past eight years in response to Indonesia's growing food demand.

Labor F&B Manufacturing a growing workforce The F&B manufacturing workforce in medium and large operations has grown steadily and significantly in recent years. This is reflected through recent increase in both FDI and DDI in Indonesia.

20,000 18,000

WHY INDONESIA?

16,000

A growing number of world-renowned F&B industry analysts and market research firms are painting a highly positive picture of consumption trends and future potential in Indonesia and the broader ASEAN and Asia Pacific region: Ÿ In early 2014, Frost & Sullivan revealed that the Asia Pacifiregion's food industry is one of the fastest growing worldwide and is expected to hold a 33% market share in t h e global F&B market in 2014. Ÿ In March 2014, Business Monitor International released encouraging growth forecasts for Indonesia's F&B sector:

14,000 12,000 10,000

722,125

714,550

714,711

785,462

931,213

2008

2009

2010

2011

2012

8,000 6,000

1,000,000

4,000

900,000

2,000

800,000

0 2006

2007

2008

Horses

Buffalos

Cattle

2009

2010

2011

2013*

700,000

Pigs

600,000

* 2013 figures are provisional

500,000

Sheep

Goats

Source: Statistics Indonesia (www.bps.go.id)

2012

400,000 300,000

ê Rising values of investments Food Consumption Growth:

Soft drink sales value growth:

Forecast 2014: 9.1% CAGR** 2014-2018: 7.6%

Forecast 2014: 11.7% CAGR** 2014-2018: 9.3%

The value of foreign direct investment has significantly increased particularly in food crops & plantations, as well as the food industry as presented in the following diagram:

200,000 100,000

-

0

Mass grocery sales value growth:

Forecast 2014: 14.2% CAGR** 2014-2018: 10.7%

Source: Business Monitor International, 2014

Source: Statistics Indonesia (www.bps.go.id)

FDI (US$ MILLION)

4000 3000 2000 1000

IN MILLION US $

• Investment in F&B Industry (2010 - 2014) 4000 3000 2000 1000 0 FDI DDI

25

0 2010

Food crops & plantation

21 2011

11

20 2012

Food Industry

2013

31 2014

Livestock Source: BKPM, 2015

2010 1014.73 1176.10

2011 1104.53 786.70

2012 1753.57 688.34

2013 2103.55 1145.41

2014 2536.84 1044.48

Source: BKPM, 2015

Value of US$ 8,513.23 million (63.749%) on FDI and US$ 4,841.02 million (36.25%) on DDI.