JAKARTA \u2013 The ASEAN Food & Beverage Alliance (AFBA) together with\nOxford Economics launched a report titled \u201cEconomic Insights: Unlocking\nIndonesia\u2019s Agri-Food Powerhouse\u201d on Wednesday (1\/4). Supported by Food\nIndustry Asia (FIA), the report affirms the strategic role of the\nagribusiness sector in driving job creation, investment, and trade in\nIndonesia.<\/p>\n
The launch of the report brought together policymakers, industry\nleaders, and regional stakeholders to discuss how the agribusiness\nsector can be optimised as the main driver of Indonesia\u2019s economic\ngrowth and competitiveness in the ASEAN region.<\/p>\n
Opening the event, Satvinder Singh, Deputy Secretary-General of ASEAN\nfor the ASEAN Economic Community, emphasised the importance of regional\ncollaboration in strengthening food systems and supply chains in\nSoutheast Asia. \u201cAgriculture is not just a sector but the true backbone\nof our economy, food security, and social stability. ASEAN represents a\ndynamic consumer market with 700 million people, and we must effectively\nmaintain and grow this market together through frameworks,\u201d stated\nSatvinder Singh.<\/p>\n
The frameworks mentioned by Satvinder include the enhanced ASEAN\nTrade in Goods Agreement (ATIGA) and the Digital Economy Framework\nAgreement (DEFA). \u201cWe provide the legal certainty and connectivity\nneeded for global businesses to thrive in this region,\u201d Satvinder Singh\nadded.<\/p>\n
Meanwhile, in the keynote speech, Leonardo A. A. Teguh Sambodo,\nDeputy for Food, Natural Resources, and the Environment at the Ministry\nof National Development Planning\/Bappenas, outlined the direction of\nagribusiness sector transformation in the Golden Indonesia 2045 vision.\n\u201cWe are currently implementing structural transformation focused on\nincreasing agricultural productivity and linking it to our agro-industry\ndevelopment. This agenda, driven by sustainable practices and community\nprogress, will help us achieve a holistic concept of national\nresilience, not limited to traditional defence, but ensuring food and\nnutritional security for our growing population,\u201d said Leonardo A. A.\nTeguh Sambodo.<\/p>\n
This transformation aligns with the 2025-2029 National Medium-Term\nDevelopment Plan agenda, which emphasises increasing added value in\nagro-industry, strengthening food security, and reducing rural poverty\nand regional disparities. These efforts are driven through policy\nreforms, increased investment, infrastructure and logistics development,\nand strengthening public-private partnerships.<\/p>\n
From a research perspective, James Lambert, Director of Economic\nConsulting at Oxford Economics, highlighted the scale and contribution\nof this sector to the national economy. \u201cThe scale of Indonesia\u2019s\nagribusiness sector is substantial, serving as a pillar supporting the\nbroader economy. In an increasingly fragmented global trade environment,\nbuilding resilience through strengthening domestic foundations and\nregulatory certainty is crucial, as policy uncertainty can be a real\nburden on long-term investment and productivity,\u201d explained James\nLambert.<\/p>\n
James Lambert also emphasised the importance of modernising logistics\ninfrastructure and policy stability to maintain Indonesia\u2019s\ncompetitiveness.<\/p>\n
Meanwhile, Pham Quang Minh from the ASEAN Secretariat affirmed the\nregion\u2019s commitment to strengthening food sector resilience and\nsustainability.<\/p>\n
\u201cASEAN focuses on resilience and sustainability through the Strategic\nPlan of Action for Food, Agriculture and Forestry (SPA-FAF). We aim to\ncreate an inclusive and resilient agribusiness sector that ensures\nstable supply chains, particularly through initiatives like the ASEAN\nIntegrated Food Security (AIFS) framework and our five-year action\nplan,\u201d stated Pham Quang Minh.<\/p>\n
From an industry perspective, Adhi Lukman, General Chairman of\nGAPMMI, emphasised the significant contribution of the food and beverage\nsector to the national economy as well as the challenges faced by\nbusinesses. \u201cThe food and beverage industry plays a critical role,\ncontributing more than 7% to Indonesia\u2019s total GDP. Although we continue\nto innovate and collaborate with local farmers to meet consumer demand,\nwe face challenges such as rising input costs and supply chain\ndisruptions. We need ongoing government support to remove regulatory\nbarriers and facilitate the import of essential raw materials to\nmaintain our competitiveness and manage inflation,\u201d explained Adhi\nLukman.<\/p>\n
A panel discussion involving government, industry, and academic\nrepresentatives also highlighted several priorities for strengthening\nagribusiness competitiveness, including regulatory efficiency,\ninfrastructure investment, improving human resource quality, and\nregional trade integration.<\/p>\n
Closing the event, Pichet Itkor, President of AFBA, emphasised the\nimportance of long-term cross-sector collaboration.<\/p>\n
\u201cFood and beverages are a long-cycle business that requires a stable,\npredictable, and simple regulatory environment. FIA and our partners are\ncommitted to working with the government in the long term to strengthen\ncollaboration and advance Indonesia\u2019s integration into regional and\nglobal supply chains,\u201d said Pichet Itkor.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesias-agribusiness-sector-prepares-to-strengthen-economic-growth-and-competitiveness-in-asean-1775098309", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }