Indonesia’s food processing industry is undergoing rapid transformation through innovation and capacity expansion, according to ProSpace Indonesia’s Food Manufacturing Report. The sector grew by 9.3% in 2024, outpacing GDP growth and creating 78,000 new jobs.
Processed food exports reached $10.2 billion, with halal-certified products, palm oil derivatives, processed seafood, and instant noodles as leading categories. New markets in Africa and Central Asia show the strongest growth rates, while traditional export destinations in ASEAN and the Middle East remain stable.
“We’re witnessing unprecedented product innovation driven by changing consumer preferences and improved manufacturing capabilities,” notes Budi Santoso, Food Industry Analyst at ProSpace. “Plant-based alternatives, functional foods, and premium versions of traditional Indonesian products show particular promise.”
Technology adoption accelerates, with 63% of medium and large food processors implementing advanced automation in the past two years. Quality control systems utilizing artificial intelligence for visual inspection are becoming standard in export-oriented facilities.
Packaging innovation focuses on sustainability, with biodegradable materials and reduced plastic use addressing both regulatory requirements and consumer preferences. Meanwhile, cold chain infrastructure improvements have expanded distribution capabilities for perishable processed foods.
Challenges include raw material price volatility and increasingly stringent food safety standards in export markets. Industry leaders are responding through vertical integration and enhanced quality management systems.
For food industry analysis: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates