Indonesia faces economic challenges moving into 2015, with the World Bank forecasting declining growth at 5.2 percent. Despite expanding levels of trade, ambiguous trade regulations, and a trade policy with a nationalistic food sovereignty outlook inhibit exports. Opportunities exist for products to service an increasingly urban and time sensitive population, as well as inputs for Indonesia’s growing food processing industry.

Indonesia is the most populous country in the ASEAN region with 255 million people in 2015, mostly concentrated on the five main islands of Java, Sumatra, Kalimantan, Sulawesi and Papua. It is home to approximately 13,500 islands and hundreds of local languages and ethnic groups. It is bestowed with vast natural resources, including petroleum and natural gas, logs, fisheries and iron ore. Indonesia is a major producer of rubber, palm oil, coffee and cocoa. Based on National Statistical Agency (BPS) data, the 2013 monthly average expenditure per capita for food was Rp 356,435 ($33.77). This averages to approximately 51.0 percent of total monthly expenditures per capita.

Credit Content and Photo : GAIN Report Number: ID1455, FAS, USDA