Indonesian Political, Business & Finance News

World in Turmoil, Food Industry Needs Certainty on Raw Materials

| Source: CNBC Translated from Indonesian | Agriculture
World in Turmoil, Food Industry Needs Certainty on Raw Materials
Image: CNBC

Jakarta, CNBC Indonesia - Ongoing wars in the Middle East and global supply chain disruptions are threatening the industry. This is not only from the energy side but also from the raw materials side. Therefore, the industry requires certainty of raw material availability to ensure smooth production.

Director of Public Policy, Government Affairs & Corporate Communications at PepsiCo, Gabrielle Angriani Johny, stated that challenging geopolitical conditions are affecting the industry broadly. These challenges also differ from previous years in terms of domestic synchronisation.

“Now geopolitics is influential; we must find ways for the industry to continue operating,” said Gabrielle at the CNBC Indonesia Food Summit 2026 with the theme “Indonesia Food Safety Urgency: Towards a New Policy Framework” at Menara Bank Mega on Monday (27/4/2026).

For large-scale industry, she said government support is needed, especially regarding raw materials. If raw materials are unavailable, it will be very difficult, as many depend on large industries.

“Large enterprises need government support, especially regarding raw materials. If raw materials are not available, it will be difficult, even though many depend on large industries,” she explained.

PepsiCo itself continues to strive to provide quality products using quality raw materials. Gabrielle revealed that when building the Cheetos and Doritos factory last year, PepsiCo ensured that the corn raw material specifications met standards.

The quality raw materials used also differ from everyday food because there are standards and specifications that must be met. Unfortunately, to obtain them, industries often have to import because they are not available domestically.

Therefore, PepsiCo is committed to contributing to supply chain fulfilment and educating farmers. In this way, domestic agricultural products can meet PepsiCo’s standards.

According to Gabrielle, her company is always active in educating and developing potato and corn agriculture together with local farmers. This effort is part of the company’s commitment to promoting farmer productivity and quality.

“We also strive for knowledge transfer. This can be quick, and farmers can accept guidance so that yields can increase,” she clarified.

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