Insights report offers a taste of things to come from booming Indonesian food market

An ABARES Insights report released today confirms Indonesia’s booming food market offers significant opportunities for Australian agriculture—but progress for our exporters will be measured.

 

The Analysis of Indonesia’s food consumption and trade: will domestic reform keep up with demand? report examines the drivers of food demand in Indonesia and outlines opportunities forAustralian agricultural exporters.

 

ABARES Executive Director Dr Jared Greenville said growth prospects for Indonesia’s food market were enormous.

 

“We expect food demand to quadruple by 2050 based on rapid growth in the country’s demand for more diverse and higher value foods such as meat, dairy, fruit and vegetables,” Dr Greenville said.

 

“This forecast strong growth in demand means that Indonesia’s agriculture sector will not be able to supply future food needs.

 

“It is likely that around three-quarters of the value of Indonesia’s food consumption will have to be supplied from imports by 2050.

 

“Indonesia is also increasingly recognising that food imports and domestic production have equally important roles for achieving food security.

 

“Recent policy reforms reflect this changing reality, with the new Omnibus Law aiming to remove penalties and restrictions on imports of some agricultural commodities.

 

“Nevertheless, Indonesia’s complex regulatory systems continue to pose barriers for exporters wishing to trade with Indonesia, and self-sufficiency remains the principal rationale for some regulatory restrictions.

 

“While there is enormous potential for Australia coming from the changes in Indonesia’s economy and regulatory framework, we expect progress for our exporters will be measured.”