Agri-Food Processing & SMEs in Indonesia

Transcription

1 Overview on Agri-Food Processing & SMEs in Indonesia Purwiyatno Hariyadi Southeast Asian Food & Agricultural Science & Technology (SEAFAST) Center, Bogor Agricultural University BOGOR, INDONESIA phariyadi.staff.ipb.ac.id Overview on Agri-Food Processing & SMEs in Indonesia Presented at - WORKSHOP Australia Indonesia Center (AIC)-Food & Agriculture Cluster, Feb 2015, IPB BOGOR 1

2 Overview on Agri-Food Processing & SMEs in Indonesia Keywords (What I ve heard and learned so far ) - SMEs (MSMEs)? - Food security? - Trade (international trade)? - Global value chain? - Shared interests Shared challenges? - etc. Overview on Agri-Food Processing & SMEs in Indonesia GDP Growth of Manufacturing Industries Non-Oil/Gas in Industry Q1 2014* Non Oil Industry F&B + tobacco Source : BPS, calculated by Kemenperin *temporary 2

3 Enterprises Classification Law No 9, 2005 Large IDR > 5B > 100 empl Medium IDR 1 5 B employees Small IDR 200 Mio 1 B 5-19 employees Micro < IDR 200 Mio 1-4 employees Pyramid of Enterprises (BPS 2006) LE ME Micro, Small & Medium (MSME) = Mio Units SE Micro E 3

4 Pyramid of Enterprises (BPS 2006) 0.1% LE ME SE 99.9% Micro E Characteristics of MSME (BPS 2006) Tilted : 96% absorption of employments BUT, only contributes to 53% GDP. 3,82% 46,72% 0.1% T IDR (53,28%) 85,7 Mio (96,18%) GDP Employments 99.9% 4

5 Characteristics of MSME (BPS 2006) 53,57% MSME: Food & Agriculture sectors 0.1% 53,6% 46,4% is the fulfillment of food for the state up to the individuals, that is reflected by food availability that is sufficient, both in quantity and quality, safe, diverse, nutritious, prevalent and affordable as well as not conflicting with religion, belief and culture, to live healthy, active and productive in a sustainable manner. Food Law No 18,

6 Keywords of is the fulfillment of food for the state up to the individuals, that is reflected by food availability that is sufficient, both in quantity and quality, safe, diverse, nutritious, prevalent and affordable as well as not conflicting with religion, belief and culture, to live healthy, active and productive in a sustainable manner. Food Law No 18, 2012 Assuring Food availability Quantity Quality Nutrition adequacy Variety Safety Accessibility Physical, economic and social accessibility Compliance to preferences Compliance to food habit and culture Compliance to belief and religion Consumption sufficiency Intake sufficiency Quality of household food processing, sanitation and hygiene Quality of drinking water Quality of child care 6

7 1 Assuring Food availability Food Quantity: prerequisite of Quantity Quality Nutrition adequacy Variety Safety Accessibility Physical, economic and social accessibility Compliance to preferences Compliance to food habit and culture Compliance to belief and religion Consumption sufficiency Intake sufficiency Quality of household food processing, sanitation and hygiene Quality of drinking water Quality of child care 1 Assuring Food Quantity: prerequisite of Issues of Agri-Food Processing and SMEs in assuring food quantity: - Availability of raw material? import? - Availability of ingredients? Esp. Functional ingredients import? - Availability of packaging material? import? - Availability of machineries? import? -????? 7

8 1 Assuring Food Quantity: prerequisite of Issues of Agri-Food Processing and SMEs in assuring food quantity: - Availability of raw material? import? - Availability of ingredients? Esp. Functional ingredients import? - Availability of packaging material? import? - Availability of machineries? import? -????? Are these shared interests/challenges? 1 Assuring Food Quantity: prerequisite of Issues of Agri-Food Processing and SMEs in assuring food quantity: - Availability of raw material? import? - Availability of ingredients? Esp. Functional ingredients import? - Availability of packaging material? import? - Availability of machineries? import? -????? Are these shared interests/challenges? 8

9 1 How AIC Food & Agricultural Cluster can do about this? Issues of Agri-Food Processing and SMEs in assuring food quantity: - Availability of raw material? import? - Availability of ingredients? Esp. Functional ingredients import? - Availability of packaging material? import? - Availability of machineries? import? -????? IF..YES, these are shared interests/challenges 1 How AIC Food & Agricultural Cluster can do about this? Addressing Issues of Agri-Food Processing and SMEs in assuring food quantity: - Value-adding partnership? - ETC IF..YES, these are shared interests/challenges 9

10 1 How AIC Food & Agricultural Cluster can do about this? Addressing Issues of Agri-Food Processing and SMEs in assuring food quantity: - Development of intermediate ingredients (of Australia & Indonesia interest)? - Dried fruits? - Dried/powdered herb/spices, local flours (tubers, roots, etc.) - ETC IF..YES, these are shared interests/challenges 1 How AIC Food & Agricultural Cluster can do about this? Addressing Issues of Agri-Food Processing and SMEs in assuring food quantity: - Development of local food ingredients (of Australia & Indonesia interest)? - Tropical fruits-based ingredients (extracts, flavors, concentrates, etc.) - Starch-based ingredients (modified starch, thickeners, etc.) IF..YES, these are shared interests/challenges 10

11 1 How AIC Food & Agricultural Cluster can do about this? Addressing Issues of Agri-Food Processing and SMEs in assuring food quantity: - Development of local food ingredients (of Australia & Indonesia interest)? - Tropical fruits-based ingredients (extracts, flavors, concentrates, etc.) - HHP (CSRIO) IF..YES, these are shared interests/challenges 1 How AIC Food & Agricultural Cluster can do about this? Addressing Issues of Agri-Food Processing and SMEs in assuring food quantity: - Development of local food ingredients (of Australia & Indonesia interest)? - Soybean? Cattle??? SCE??? - Jambi? Sulawesi??? IF..YES, these are shared interests/challenges 11

12 1 How AIC Food & Agricultural Cluster can do about this? Addressing Issues of Agri-Food Processing and SMEs in assuring food quantity: - Development of local food ingredients (of Australia & Indonesia interest)? - Soybean? Tempe? - Development of tempe technology, high value product, high value ingredients, etc. IF..YES, these are shared interests/challenges 1 How AIC Food & Agricultural Cluster can do about this? Addressing Issues of Agri-Food Processing and SMEs in assuring food quantity: - Development of local food ingredients (of Australia & Indonesia interest)? - Cattle? Meat? - Development of cattle-industry???? IF..YES, these are shared interests/challenges 12

13 2 Assuring Food availability Food Safety: prerequisite of Quantity Quality Nutrition adequacy Variety Safety Accessibility Physical, economic and social accessibility Compliance to preferences Compliance to food habit and culture Compliance to belief and religion Consumption sufficiency Intake sufficiency Quality of household food processing, sanitation and hygiene Quality of drinking water Quality of child care 2 Food Safety? Indonesia : Double Challenges of Food Safety FOOD SECURITY? 13

14 2 Food Safety? Indonesia : Double Challenges of Food Safety FOOD SECURITY? 2 Food Safety? domestic issues Challenges of Domestic Food Safety Microbial problem unsanitary conditions Uses of unsafe-chemicals Unsafe use of food additives 14

15 2 Food Safety? domestic issues Roots of the problem? Poverty lack of foods Food production system is dominated by SMEs (and household industries) Lack of basic food safety infrastructure (clean water, clean ice, cold chain system, etc.) Lack of capacity of human resources (Producers, consumers, government officials) Lack of funding 2 Global food trade will likely to increase due to expected increases in global income levels Consumers take advantage of lower prices and greater seasonal availability of some foods abroad ~ global value chain 15

16 2 World Integrated Trade Solution Database ( Already ~ 40% of all trade in food agriculture, fisheries occurs between developing & developed countries 2 Indonesian processed food products of export (MOT RI, 2010) 16

17 2 Indonesian processed food products of export (MOT RI, 2010) 2 United Nations Industrial Development Organization (UNIDO) Norad Norwegian Agency for Development Cooperation Institute of Development Studies (IDS), Brighton, UK 17

18 2 Number of EU rejections of food and feed exports from Indonesia, Number of US rejections of food and feed exports from Indonesia,

19 2 Driving forces for trade is economic gain International trade is important for economy of developing country However, increasingly restrictive/stringent international food safety standard Limit market access Could incur significant export/income loss 2 For Indonesia, average number of rejection each year: 40 for the EU, 377 for the USA, 38 for the Japan, and 50 for Australia 19

20 2 For Indonesia, average number of rejection each year: 40 for the EU, 377 for the USA, 38 for the Japan, and 50 for Australia 2 For Indonesia, average number of rejection each year: 40 for the EU, 377 for the USA, 38 for the Japan, and 50 for Australia WHY? Quality Safety ~ MSME Issues? 20

21 2 For Indonesia, average number of rejection each year: 40 for the EU, 377 for the USA, 38 for the Japan, and 50 for Australia WHY? Quality Safety ~ MSME Issues?????? Are these shared interests/challenges? 2 For Indonesia, average number of rejection each year: 40 for the EU, 377 for the USA, 38 for the Japan, and 50 for Australia YES.. The shared interest/challenges: How to make Indonesia-Australia stronger (& trusted) trading Partners (reducing export refusals)????? Are these shared interests/challenges? 21

22 2 If YES Is there any AIC scheme to address this? 2 If YES Is there any AIC scheme to address this Empowerment /capacity building program? 22

23 2 If YES Is there any AIC scheme to address this Empowerment /capacity building program? If YES Is there any AIC scheme to 2 address this Empowerment /capacity building program? 23

24 If YES Is there any AIC scheme to 2 address this Empowerment /capacity building program? TERIMAKASIH 24