Food & beverage highest contributor to industry growth

Jakarta (ANTARA) - Food and beverage industry has recorded 38.42 percent contribution to Indonesia's non-oil and gas manufacturing industry growth, the largest contributor in the second quarter of 2021, with its positive growth of 2.95 percent.

The industry has made 6.66 percent contribution to the country's Gross Domestic Product (GDP), acting Director General of Agro-industry at the Industry Ministry Putu Juli Ardika said.

"Food and beverage industry has brought a wide positive impact to the national economy, such as increasing added value through industry downstreaming, revenue from investment and export, and high absorption of workforces," Ardika said in Bekasi, West Java, on Sunday.

Exports in food and beverage sector have recorded a 42.59 increase to US$19.58 billion in the second quarter of the year, compared to US$13.73 billion of export during the same period of 2020.

Ardika said the industry's performance should be maintained during the COVID-19 pandemic, considering its significant role to supply food to the public.

The ministry, according to Ardika, has made every effort to improve the industry's productivity and competitiveness by maintaining adequate supply of raw material and providing fiscal incentive.

"During the pandemic, we surely pay more attention to critical and essential industries to ensure their operation, including food and beverage industry," he stated.

To that end, the ministry has issued the Industrial Operation and Mobility Permit (IOMKI) amid the pandemic with stringent health protocols.

As of July 24, 2021, as many as 6,721 IOMKI have been issued for companies in agro-industry sector that employed 1.85 million people.

Ardika applauded companies that have imposed stringent health protocols and conducted vaccinations for their workers.

"Vaccination is crucial for employees' health and furthermore it will maintain the company's productivity," he added.

In Bekasi, of the total 57,848 workers in agro-industry sector, 33,657 of them or some 58.18 percent have received COVID-19 vaccine shots.

The ministry targeted to administer the vaccine to 95 percent of the workers in the industry by September.