The food and beverage industry is still the highest contributor to the manufacturing sector and it still has a big prospect to be developed in Indonesia. This industry also encourages the production of the agricultural sector through the processing and absorption of raw materials. In the quarter III / 2017, the growth of the food and beverage industry was recorded at 9.46%, increasing then the performance in the second quarter of 2017 which was about 7.19%. These achievements contribute to the Gross Domestic Product (GDP) of non-oil and gas industry which reached 34.17 percent or the highest compared to other sectors.
The food and beverage industry of Indonesia remains one of the most promising investment destinations for domestic and foreign investors. In the January-September 2017 period, a total of IDR 47.56 trillion (approx. USD $3.5 billion) was invested in this industry.
The industrial growth in Indonesia is driven by an increasing population and is also affected by the urbanization. Indonesia with over 260 million populations has recognized as one of the most important dynamic markets and became a very promising market in the world. Moreover, Indonesia’s per capita GDP is rising; hence the middle class is expanding rapidly. As Indonesian people’s purchasing power improves, they can afford to buy more food and beverage items (and can afford more expensive items).