Current Status of the Food Industry in Indonesia

Abstract

This study assesses the contribution of the food and beverage industry to the Indonesian economy based on firm characteristics. The comparative descriptive statistical method describes a detailed mapping of the firm's character and the main supporting factors, such as processed commodities, firm size, island region, capital ownership, and exporters. The contribution of the food and beverage sub-industry varies; the vegetable and animal oils and fats industry is the largest and most effective. Small and medium firms have the lowest contribution compared to large firms. Firms in the Sumatra region have the highest contribution compared to firms in other regions. PMDN firms have a higher contribution than PMA firms. Non-exporting firms have a high average contribution compared to exporting firms. Based on the results, policymakers can concentrate on the potential to increase the contribution of a particular group of firms.