Indonesia’s Ministry of Trade has recognised Indonesian processed food as one of its top 10 exports with potential. This category includes instant noodles, crackers and snacks, bird’s nest, coffee and more.
Indofood, one of Indonesia’s largest producers of processed food reported in 2017 that the value of its overseas sales was IDR 3.1 trillion, or USD 219 million. This represented 10.3% growth from its 2016 overseas sales value of IDR 2.81 trillion, or USD 199 million. By mid-2018, exports made up 12% of Indofood’s sales, which shows that Indonesian processed food still has a lot of potential to grow.
Indofood’s top-selling categories are its instant noodles, like Indomie and sauces like chilli sauce and soy sauce. The Indonesian ministry of trade also released the top 10 countries that import Indonesian processed food in 2017 and 2018. Worth noting is that 6 of these countries, the Philippines, Malaysia, Singapore, Vietnam, Thailand and Cambodia are Southeast Asian. According to Indofood, regions like the Middle East and Africa also really like Indonesian processed food.
Source: Kementerian Perdagangan Republik Indonesia
Known for being cheap, affordable, and accessible, Indonesia’s packaged food’s flavour also makes it a hit in many households. In some cases, Indonesians who are living abroad, such as those who are working or studying, would also purchase Indonesian packaged food for a taste of home. They’ll either go to their current country’s retail store, or in some cases, purchase these products online to get their Indonesian food fix.
E-commerce is also changing the way SMEs are selling their local food as well. Indonesia’s push to digitalise is seeing more internet access to more parts of the country. More SMEs are now having access to platforms like Tokopedia and Bukalapak, or in some cases even Instagram to sell their products online. Some examples of this include selling home-made rendang and sambal online.
So far, it’s been shown that Indonesia is home to a number of talented fashion designers while having the understanding and foundation necessary to capture the upcoming modest fashion trend. Indonesia’s packaged food has been showing increasing export growth, while e-commerce platforms have the potential to help packaged food SMEs reach a wider, international audience. These aren’t the only two categories that have lots of potential to drive Indonesia’s e-commerce exports forward. In our next piece, we’ll cover Indonesia’s cosmetics export potential and how Indonesia’s government is planning on supporting e-commerce exports in the country.
Sign up for our newsletter to get our latest scoop and insights to Southeast Asian e-commerce and the latest logistics tips.
Looking to ship throughout Southeast Asia? Contact us to find out how.
Interested in e-commerce in Indonesia? Find out more about Indonesian e-commerce with our latest e-book!:
2019 Guide to Entering Indonesia’s E-commerce Market
More articles on Indonesia’s e-commerce: