Rising personal incomes are making beef more affordable in Indonesia despite high global prices. Industry experts anticipate double-digit growth rates for the beef market in Southeast Asia's largest economy, which opens up attractive opportunities for foreign exporters and investors.
Indonesia’s per capita consumption of beef, which currently stands at just less than 3 kg annually, is expected to hit double digit growth within the next two decades; a significant increase from its present rate of 4.2% (Ministry of Trade) and very much indicative of rising demand for red meat in South East Asia’s largest economy.
The country's large market potential and westernising diets in the fast-growing Southeast Asian region could make Indonesia an attractive hub for dairy manufacturing, provided that sufficient raw materials can be sourced from local dairy farms.
Indonesia’s dairy industry and dairy products industry is undergoing a boom with market demand rising by over 10% on an annual basis for the past ten years due to changing consumer habits and population growth. This section looks at some of the key consumer trends in the industry.
The Indonesian fisheries sector grew rapidly throughout 2015 under the steam of the Jokowi government’s renewed focus on Indonesia’s competitive advantages within maritime related sectors. The Indonesian government continues to improve its policies in order to enhance the fisheries sector.
Indonesia holds the potential to be a major global producer and exporter of fishery and aquaculture products. As part of President Joko Widodo’s maritime centred vision, the country is making strides in curbing illegal fishing and has taken a more emboldened stance on fishery exports.
Contribution to GDP: 13.88% (Q3 2015 for Agriculture including Fisheries & Livestock) Exports: $3.1 billion USD (2014 for Fisheries)
Main Products: Shrimp, Tuna, Grouper Fish, Snapper Fish, Mackerel, Squid, Octopus, Cuttlefish, Crab, Seaweed, Sea Cucumber, Lobster.
Main Imports: Live Cattle, Frozen Beef and Veal, Cow Milk.
Relevant Law: Indonesia is aiming for self-sufficiency in both beef and poultry with restrictions placed on imports of both products. However, the country is still heavily reliant on imports of live cattle and beef. The Animal Husbandry and Animal Health Law of 2014 widens the scope of countries from which Indonesia can source animal products.