The Indonesian Food and Beverage Producers Association (GAPMMI) said that the food and beverage industry had not fully recovered from the decline in performance due to the Covid-19 pandemic. GAPMMI Chairman Adhi S. Lukman said, although the industry he was involved in was not too affected by the weakening of exports, the food and beverage industry had not fully recovered. Based on data from the Central Statistics Agency (BPS), the growth of the food and beverage industry in 2022 will reach 4.9 percent. "Because before the pandemic growth could be above 7-9 percent, yes, sometimes it was above 10 percent, yes, why is that, because we are still in the recovery process," said Adhi, Saturday (12/2/2023).

However, according to him, in this recovery process the food and beverage industry continues to grow with demand that continues to improve, at a time when other industries such as the textile industry slumped in quarters III/2022 and IV/2022.

“Demand continues to increase, both local and export. Exports have also increased significantly by around 20 percent," he added.

The food and beverage industry in quarters I/2022 and II/2022 experienced growth of 3.75 percent and 3.68 percent. Then, in the third quarter of 2022 it grew 3.57 percent and is getting better with a growth of 8.68 percent yoy in the fourth quarter of 2022.

Even though it tends to be better, said Adhi, the food industry is also affected by geopolitical instability and uncertain climate change which causes increases in raw material prices, energy prices, and logistics prices.

"And this year we are also facing the same thing, geopolitics and climate change are uncertain. In my opinion, this 5 percent growth is good enough in the current conditions," he said.

Adhi remains optimistic that the growth of the food and beverage industry will be booming this year because the value of the investment, which according to him will continue to increase.

Adhi estimates that the food and beverage industry will grow by 5 percent in 2023 along with the investment value, both domestic investment (PMDN) and foreign investment (PMA), which according to him is projected to increase by around 20 percent.

This optimism is driven by an increase in investment value in 2022. He said, the PMDN investment value for the food and beverage industry increased 107 percent to IDR 54.9 trillion from IDR 26.5 trillion in 2021.

Previously, Director of the Center for Economic and Law Studies (Celios) Bhima Yudhistira Adhinegara said the food and beverage industry was one of the industries that were doing well after the outbreak of the Russia-Ukraine war which caused an economic downturn in various industrial sectors.

"What is still quite high is the sector related to food and beverages because these are basic needs, yes, basic needs, [so] many countries need them," said Bhima (19/1/2023).