Food & Hotel Indonesia 2013

The Economy

The Indonesian economy is powered by domestic consumption. As the world’s fourth most populous country with almost 240 million people, the population is relatively young: half is aged between 15 and 44. Upper and middle-income groups number around 35 million, and lead the way in consumption of international food and drink products. Mid-2009 saw Indonesia’s economic growth rate revised upwards by the Central Bureau of Statistics, to between 4-5 per cent. Growth of up to 6 per cent is now predicted for 2010, while longer term, the national development planning board predicts growth of 9 per cent by 2014.Political stability and economic potential are two factors underpinning the current upbeat assessment of the country’s future. It is also re?ected in the new Doing Business 2010 report: Indonesia is ranked as a “star performer” in the global ease-of-doing-business rankings. Indonesia has been also been commended by the IMF for the robust steps it has taken to successfully weather the impact of the global ?nancial downturn.

Modern Retailing

Rapid development of modern supermarkets and mini-markets has seen them proliferate from major cities into the country as a whole. They are now accessed by consumers from an increasingly wide segment of the population. The expected rapid development of new shopping malls will continue to enable modern chain retailers to expand their presence nationwide. Grocery sales are worth around US$10 billion annually and are growing at about 10 per cent year-on-year. Indonesia's soft and alcohol-free drinks market, today worth US$3 billion, is forecast to rise to US$4.5 billion by 2011.

Meat Imports

Meat imports continue to increase, placing Indonesia among the big prospective markets for international companies. Indonesia’s beef imports have been steadily rising. In 2008, Indonesia imported 35 percent, or more than 70,000 tons, of its beef, up from 20 percent in 2