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Indonesia a Practical Guide to the Market in Indonesia for European Agri- Food Products

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Indonesia a Practical Guide to the Market in Indonesia for European Agri- Food Products The Food and Beverage Market Entry Handbook: Indonesia a Practical Guide to the Market in Indonesia for European Agri- food Products Agriculture and Rural Development October 2017 Prepared by: EUROPEAN COMMISSION Consumers, Health, Agriculture and Food Executive Agency Promotion of Agricultural Products Unit E-mail: [email protected] Tastes of Europe Indonesia – Market Entry Handbook Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2016 © European Union, 2016 Reproduction for commercial purposes is not authorised. 3 Tastes of Europe Indonesia – Market Entry Handbook TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................. 4 TABLE OF FIGURES ............................................................................................... 7 LIST OF TABLES .................................................................................................... 8 I. THE FOOD AND BEVERAGE MARKET ENTRY HANDBOOK: INDONESIA ..................... 10 i. How to use this handbook ....................................................................... 10 1. INDONESIA FACT SHEET .................................................................................. 11 1.1 Key economic figures “at a glance” ........................................................ 16 1.2 Food and beverage trade statistics ......................................................... 17 1.3 General information on distribution and logistics infrastructure .................. 17 2. THE INDONESIAN FOOD AND BEVERAGE MARKET ............................................... 19 2.1 Market size and market share ............................................................... 19 EU-Indonesia bilateral trade ............................................................. 20 EU GIs in Indonesia ......................................................................... 21 Opportunities for Foreign-Supplied Products ....................................... 22 2.2 Growth drivers and trends .................................................................... 22 Rising incomes and growing consumer confidence ............................... 22 Young, growing Indonesian population ............................................... 23 Increased urbanization..................................................................... 23 Growing awareness of healthy lifestyle products ................................. 23 Expanding mass grocery retail sector ................................................. 23 Growth of tourism sector .................................................................. 24 General consumer tastes and preferences .......................................... 24 2.3 Market access and market entry ............................................................ 25 2.4 Transportation infrastructure ................................................................. 25 Infrastructure challenges.................................................................. 26 Distribution Channels and Intermediaries ........................................... 26 2.5 Key markets by geography ................................................................... 28 Mid-sized and large middleweight cities.............................................. 28 Small middleweight cities ................................................................. 29 Indonesia’s 2025 Vision for Major Cities ............................................. 29 2.6 Customs, SPS Requirements and Labelling .............................................. 29 Customs Procedures and Documentation ............................................ 29 Important stakeholders in export-import process in Indonesia: ............. 30 Import declaration forms .................................................................. 33 SPS Requirements in Indonesia ......................................................... 33 Standards ...................................................................................... 34 4 Tastes of Europe Indonesia – Market Entry Handbook Labelling ........................................................................................ 35 Packaging and Container Regulations ................................................. 36 Halal labelling ................................................................................. 36 Organic labelling ............................................................................. 37 2.7 The Status of Geographical Indications (GIs) and Intellectual Property (IP) Protection ................................................................................................ 37 Definitions of GIs in Indonesia .......................................................... 37 Protection ...................................................................................... 38 Enforcement ................................................................................... 38 Registration as a GI ......................................................................... 38 Application Cost .............................................................................. 40 Registration of foreign GIs in Indonesia.............................................. 40 Competent authorities for GI protection ............................................. 41 3. MARKET SNAPSHOTS FOR SELECTED PRODUCTS ................................................ 42 3.1. Wine .............................................................................................. 44 Consumption .................................................................................. 44 Offer .............................................................................................. 45 Distribution .................................................................................... 50 3.2 Spirits ................................................................................................ 53 Consumption .................................................................................. 53 Offer .............................................................................................. 55 Distribution .................................................................................... 58 3.3 Beer ................................................................................................... 60 Consumption .................................................................................. 60 Offer .............................................................................................. 61 Distribution .................................................................................... 66 3.4 Fresh and Processed Meat ..................................................................... 68 Consumption .................................................................................. 68 Offer .............................................................................................. 70 Distribution .................................................................................... 76 3.5 Olive Oil ......................................................................................... 78 Consumption .................................................................................. 78 Offer .............................................................................................. 79 Distribution .................................................................................... 81 3.6 Fresh Fruits and Vegetables .................................................................. 82 Consumption .................................................................................. 82 Offer .............................................................................................. 85 5 Tastes of Europe Indonesia – Market Entry Handbook Distribution .................................................................................... 90 3.7 Processed Fruits and Vegetables ............................................................ 93 Consumption .................................................................................. 93 Offer .............................................................................................. 94 Distribution .................................................................................... 97 3.8 Dairy Products ..................................................................................... 98 Consumption .................................................................................. 98 Offer ............................................................................................ 101 Distribution .................................................................................. 108 3.9 Processed Cereals .............................................................................. 110 Consumer trends ........................................................................... 110 Offer ...........................................................................................
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