In response to the growing demand for processed food products and the relatively low national meat consumption, there is an opportunity for the meat processing industry in Indonesia to expand its market for processed meat products domestically. This trend aligns with the government's initiative to boost national animal protein consumption to combat stunting and malnutrition, as stated by Putu Juli Ardika, the Director General of Agro Industry at the Ministry of Industry. According to the OECD FAO report, current national beef consumption stands at 2.25 kilograms per capita per year, while chicken consumption is at 8.37 kilograms per capita per year. Despite being comparatively low, Indonesia's meat processing industry is experiencing rapid growth, ranking as the fastest globally. With 64 companies, an investment value of IDR 3.45 trillion, and a workforce of 25,839 people, the industry is thriving. The export performance of processed meat products (HS 1601 and 1602) witnessed a significant increase in 2023, reaching an 80% growth compared to 2019. The export value in 2023 amounted to USD 3.5 million, up from USD 2.8 million in 2019. Putu emphasized that although this export value is small compared to major global processed meat producers, it signifies a substantial and noteworthy potential for growth.
Factors influencing the industry's performance include the changing lifestyles of urban populations, demanding faster and instant food options. This has led to an increased consumption of processed foods, including meat products. In 2023, the consumption of beef and poultry experienced consecutive growth of 8.20% and 12.03%, respectively, compared to 2019. Indonesia ranks third in ASEAN for beef consumption growth after Vietnam and Malaysia, and third for poultry consumption growth after Vietnam and the Philippines. Despite global challenges such as geopolitical tensions and ongoing conflicts, fluctuating global food and energy supplies, high inflation in some developed countries, increased interest rates, and a depreciating rupiah, the meat processing industry remains resilient. Looking ahead, Putu anticipates a dynamic landscape for the food and beverage industry, including meat processing, necessitating continuous innovation and adaptation to not only survive but thrive in the evolving times. Despite potential challenges, Putu expresses confidence in turning these challenges into opportunities for the industry.
