GAPMMI Projects 7 Percent Growth for Food and Beverage Industry

The Indonesian Food and Beverage Producers Association (GAPMMI) projects that the food and beverage industry will grow by approximately 7 per cent by the end of the year. Growth for the industry was recorded at 7.04 per cent during the first quarter.

Adhi S. Lukman, General Chair of GAPMMIT, stated that this target is being maintained despite the decline in Indonesia’s manufacturing Purchasing Managers’ Index (PMI) and the Industrial Confidence Index (IKI) in June 2026. This assessment also presents a challenge for business players. “Hopefully, we can continue to maintain this because the government is also starting to make improvements,” he said when met at the Westin Hotel, Jakarta, on Thursday, 2 July 2026.

The improvements referred to by Adhi include addressing business owners’ complaints regarding the rise in gas prices for production. Additionally, the removal of import duties on plastic is being sought to lower production costs.

However, several issues persist, such as rising fuel prices, logistics costs, and the weakening of the Rupiah. GAPMMI will continue to voice these concerns to the government to ensure industrial performance is supported. “We are continuously striving to convey this to the government, and we hope the government will promptly improve regulations to further strengthen the industry,” said Adhi.

Previously, the rating agency Standard & Poor’s Global (S&P) reported that Indonesia’s manufacturing PMI contracted to a level of 46.9 in June 2026. This position declined from May, which stood at 50.0. The June decline was triggered by a drop in demand for Indonesian manufactured goods.

Furthermore, the Ministry of Industry noted that the IKI for June 2026 was 52.90, lower than May’s figure of 53.6. This was influenced by rising energy prices, the Rupiah’s exchange rate, which caused raw material prices to surge, and power outages that hindered production activities.

Adhi S. Lukman noted that raw material prices are critical, as the regulating framework must be more conducive to the business climate. “So that the industry will have more freedom to seek cheaper sources,” he added.