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Indonesia’s National Agency of Drug and Food Control (BPOM) has drafted a new regulation that would mandate the use of a “Nutri-Level” front-of-pack labeling system for sugar, salt, and fat (SSF) content and set maximum SSF levels.

The signature campaign promise of the newly sworn-in Prabowo administration, the Free Nutritious Meals Program, will be a large driver of increased demand over the next five years as the program aims to provide milk to over 82 million beneficiaries daily by 2029.

Indonesia’s growing youth population, middle class, and urbanization offer promising opportunities for U.S. exporters. The retail sector had sales totaling $103 billion in 2023 with increased demand from convenience stores and traditional stores.

Indonesia offers significant opportunities for U.S. ingredient suppliers to meet the demand for raw materials for its food processing industry. The United States is the third largest agricultural supplier to Indonesia, with an 11-percent market share.

Although Indonesian dairy production is still reeling from the 2022 Foot and Mouth Disease (FMD) outbreak, imports of dairy ingredients are expected to decline in 2023.

In 2022, the total value of grocery retail sales in Indonesia reached $100 million, a 9 percent increase from the previous year due to the easing of pandemic-related measures.

The 2023 U.S. Agricultural Export Yearbook provides a statistical summary of U.S. agricultural commodity exports to the world during the 2023 calendar year.

The 2022 U.S. Agricultural Export Yearbook provides a statistical summary of U.S. agricultural commodity exports to the world during the 2022 calendar year.

Indonesia currently imports 65 percent of the raw materials needed for its growing food processing industry.

The outbreak of Foot and Mouth Disease (FMD) has significantly disrupted Indonesia’s fresh milk production, which dropped 35 percent compared with the previous years’ production. The decline in domestic fresh milk production has been offset by a significant increase in imported whole milk powder. A rebound of the food service sector industry is expected to support a modest increase in the trade of dairy ingredients in 2022 and 2023.

In 2021, the total value of all food and beverage retail sales in Indonesia totaled $72 billion, a 12 percent decrease from the previous year due to COVID-19 pandemic social distancing measures. Traditional markets still dominate the retail food and beverage sector, accounting for 76 percent of market share, although they continue to lose market share to modern retail stores and e-commerce.

The 2021 U.S. Agricultural Export Yearbook provides a statistical summary of U.S. agricultural commodity exports to the world.