Food SMEs in RI reach 1.7 million units, absorb 3.6 million workers

Jakarta, CNBC Indonesia – The food and beverage industry sector is the largest contributor to the contribution of the non-oil and gas processing industry sector which is the backbone of the Indonesian economy.

Until the first quarter of 2024, the GDP structure of the non-oil and gas processing industry is dominated by the food and beverage industry which accounts for 39.91%, or 6.47% of the total National GDP.

This figure is added to the export value of the food and beverage industry in April 2024 which reached 2.71 billion USD or 19.4% of non-oil and gas processing industry exports and is the second largest export after the basic metal industry sector.

“Of this value, part of it is the contribution of food and beverage SMEs, which amount to around 1.7 million business units, absorbing around 3.6 million workers, making it a labor-intensive industry,” said Director General of Small, Medium and Miscellaneous Industries at the Ministry of Industry, Reni Yanita. at the Indonesian Food Innovation (IFI) 2024 Kick Off of the Ministry of Industry, Thursday (6/6/2024).

Referring to this data, it can be seen that food and beverage SMEs play an important role as a component of community empowerment in Indonesia.

However, on the other hand, there are still problems that are obstacles to the progress of SMEs, including limited capital, unprofessional management, non-fulfillment of business standards and legality, and limited innovation.

From the external side, SMEs are also faced with various challenges in running their business such as uncertainty in the supply of raw materials, the presence of competitors and new products, as well as highly fluctuating market demand.

“Talking about market demand, apart from the domestic market which is the main market, this era of globalization has opened up opportunities for Indonesian food and beverage SMEs to market their products at the international level. For this reason, SMEs need to prepare themselves to adapt and innovate by reading trends and market needs, both domestic and export markets,” said Reni.

[Gambas:Video CNBC]