“A winner”: this is how the World Bank’s resident director describes the Indonesian economy - “in an exciting position to emerge as a winner from global turmoil.” International investment banks have promoted the country to the ?rst rank of fast-emerging economies that will underpin future global growth. “Indonesia is suddenly hot, and back on the radar of global investors,” say commentators. food and hotel Indonesia is the international food and hospitality industry’s entry point into this win-win situation.
The Economy
The Indonesian economy is powered by domestic consumption. As the world’s fourth most populous country with almost 240 million people, the population is relatively young: half is aged between 15 and 44. Upper and middle-income groups number around 35 million, and lead the way in consumption of international food and drink products. Mid-2009 saw Indonesia’s economic growth rate revised upwards by the Central Bureau of Statistics, to between 4-5 per cent. Growth of up to 6 per cent is now predicted for 2010, while longer term, the national development planning board predicts growth of 9 per cent by 2014.Political stability and economic potential are two factors underpinning the current upbeat assessment of the country’s future. It is also re?ected in the new Doing Business 2010 report: Indonesia is ranked as a “star performer” in the global ease-of-doing-business rankings. Indonesia has been also been commended by the IMF for the robust steps it has taken to successfully weather the impact of the global ?nancial downturn.
Modern Retailing
Rapid development of modern supermarkets and mini-markets has seen them proliferate from major cities into the country as a whole. They are now accessed by consumers from an increasingly wide segment of the population. The expected rapid development of new shopping malls will continue to enable modern chain retailers to expand their presence nationwide. Grocery sales are worth around US$10 billion annually and are growing at about 10 per cent year-on-year. Indonesia's soft and alcohol-free drinks market, today worth US$3 billion, is forecast to rise to US$4.5 billion by 2011.
Meat Imports
Meat imports continue to increase, placing Indonesia among the big prospective markets for international companies. Indonesia’s beef imports have been steadily rising. In 2008, Indonesia imported 35 percent, or more than 70,000 tons, of its beef, up from 20 percent in 2000. The ?gure is predicted to reach 100 000 tonnes by 2010.
hotel Developments
The Indonesian Association of hotels & Restaurants (PHRI) says a large number of new hotels will open in the next 12 months, with the support of the government’s Visit Indonesia investment programme. In Jakarta alone 13 new hotels are scheduled to open in the next two years. Local groups such as Santika and Sahid plan to build some 40 hotels nationwide in the period. PHRI also says that international hotel operators continue to show strong interest in developing new properties. In Bali investors are committing US$100 million to the 5-star Rich Prada mega-resort on a 20-hectare site. Opening is targetted for 2010.
Food & Hotel Indonesia 2011
