MECHANISM, CHALLENGES,&

OPPORTUNITIES FOR FOOD INNOVATION

IN INDONESIA

Iwan Surjawan, Ph.D.

AGENDA

I. Introduction
1.
2.
3.

Windows of Opportunities
Nation Innovation Situation
Food Innovation in Indonesia

II. Challenges of Food Innovation in Indonesia

III. Opportunities of Food Innovation in Indonesia
1.
2.
3.

Food and Beverage Industry Driven in Indonesia

Strategic of food innovation in Indonesia
Potential of Food Innovation in Indonesia

IV. Insights

I. INTRODUCTION

INDONESIAS WINDOW OF OPPORTUNITIES

NATURAL RESOURCES

LARGE DOMESTIC MARKETS

POLITICAL STABILITY
Indonesia possesses the fundamentals
to be a leading global economy

AGRICULTURAL NATURAL RESOURCES

LARGE DOMESTIC MARKET

Population :255 million ( 2015)
Currency :Indonesian Rupiah
Nominal GDP: $895 billion USD (IMF,
2015)
GDP per capita: $3,415 USD (IMF, 2015)
GDP Growth: 4.7% (2015)
Ext. Debt: 34.77% of GDP (BI, Q3 2015)
Ease of Doing Business: 109/189 (WB, 2015)

NATION INNOVATION SITUATION

Economics Situation Affecting Innovation
Has risen to become a middle-income economy

Significant on exports of natural resources and good

trade links with leading global economies
Indonesias GDP per capita remains relatively low
Imports of high-technology products outweigh exports

NATION INNOVATION SITUATION

Mechanism

It has not developed a technology intensive industry structure.

Govt policies tended to neglect the development of
An adequate scientific and technological base
Framework conditions for innovation.

New policies and mechanisms to stimulate innovation-led growth

Mechanisms in place remains to oversee the co-ordination

The effectiveness of these measures are scarce

NATION INNOVATION SITUATION

Key Points to Accomplish for Nation Innovation to Realize The
Govts Growth Ambitions
Significant improvements in infrastructure
Minimize barriers to entrepreneurship and business risk
Rapid expansion in Higher Education system
Foreign partners collaboration or supports with local research
and technology institutes/universities to accelerate the nation
innovation process.

FOOD INNOVATION IN INDONESIA

Presidents direction to realize on:
Food Sovereignty (2014 2019)

Capability on self supplies food from

domestic production

Independent on managing food

policies.

Protecting and providing welfare to

farmers.

FOOD INNOVATION IN INDONESIA

Target on Agriculture Development (2014 2019):
1. Self-supporting (Swasembada) on rice, corn, and soy; sugar
and meats.
2. Increase in food diversification.
3. Increase in value-added food commodities to compete in
fulfilling market export and substitutes for import.
4. Provision on bio-industry and bio-energy.
5. Increase in farmers income and economy.
6. Accountability on good job performance of government.

II. CHALLENGES IN NATION FOOD INNOVATION

CHALLENGES IN NATION FOOD INNOVATION

Short terms and Long terms roadmaps, agenda, and capital
Change mindset from Workshops to Field Implementation

Huge coordination and program integration to achieve synergy in

institutional collaborations.
Agriculture and Food Innovation readiness from farm to table
Modern Farming Technology (Superior seeds, fertilizer, etc)
Harvest and Post-Harvest Mechanization
Food Processing and Packaging Technology
Quality and Food Safety
Bioinformatic, bioenergi and environment
Logistic and supply chain

II. OPPORTUNITIES OF FOOD INNOVATION IN ASIA

OPPORTUNITIES OF FOOD INNOVATION IN ASIA

(Source : ADB 2014)

FOOD AND BEVERAGE INDUSTRY DRIVEN IN INDONESIA

oLargely driven by rising household consumption.
o Growth is fueled by rising personal incomes and increased spending.

o Local companies have been evolved into successful global exporters.

o A prime opps for foreign co to sell their products to Indonesian consumers.
o Lifestyle changes in Indonesia's urban centers.

o Hypermarkets and mini-markets moving deeper into the regions.

o Improving logistics facilitate the food distribution across the archipelago.

STRATEGICS OF FOOD INNOVATION IN INDONESIA

STRATEGICS
The Price is Right

Innovate in tailoring traditional foods to a convenience retail package forms.

Bring western or foreign flavors to local palate and market.

Invest in applying affordable technology to convert raw materials to semi-processed

or value-added ready to use ingredients.
Design and apply packaging and warehousing technology that protect food quality
and safety from harsh tropical weather fluctuation and from physical impacts
Introduce affordable healthy foods by utilizing local healthy ingredients.
Consult and collaborate with local applied research institutions or universities for
better and faster development process.

POTENTIAL OF FOOD INNOVATION IN INDONESIA

1. Healthy and Functional Snacking
2. Healthy RTD Water and Beverages

3. Dairy products
4. Local Street Foods to Retail Packaged Form

5. New taste and flavor

6. Ready to Eat meals and lunch box meals
7. Food Safety Handling on Street Foods
8. Raw Material to Semi Processed to Ready-to-Use Ingredients

1. HEALTHY AND FUNCTIONAL SNACKING

SNACKING
The market forecast to grow by over 50% to $1.14bn by 2017 (Mintel, 2014)
Examples:

Vacuum Fried Fruits & Vegetables

Baked Chips

Tempeh Chips

Sweet Potato Chips

2. HEALTHY RTD BEVERAGES

- Less Sugar, and No Sugar Tea
- Super Fruits and Vegetables of Juices
- Vitamin Water and Probiotic Drink
- Non-dairy protein drink (soy, oats, rice, etc)

3. DAIRY PRODUCTS3
Cheese
Cheese Powder
Pasteurized Milk
Smoothies

Yoghurt and Yoghurt Drink

4. LOCAL STREET FOODS TO RETAIL MARKET

Example
SWEET MARTABAK

INDIVIDUALLY PACKED: CONVENIENCE & SHELF LIFE

5. NEW TASTE AND FLAVOR

- Creative flavors and taste creation

6. READY TO EAT MEALS AND LUNCH BOX MEALS

- Convenient READY-To-Eat meals for dont have time to cook people
- Lunch box for worker or students
- Microwavable RTD meals

7. FOOD SAFETY HANDLING ON STREET FOODS

- Establish regulation on street food safety handling.
- Improve design for food safety issues.
- Vending machines

8. RAW MATERIAL TO SEMI PROCESSED TO READY TO USE INGREDIENTS

1. Carragenan Powder

3. Bioactive Ingredients, Natural Flavor

and Color

2. Algae Powder and Oil

4. Starches to Modified Starches and

Sugars

IV. SUMMARY

OTHER POTENTIAL FOR FOOD INNOVATION

Please Contact

Iwan Surjawan, Ph.D.

Department of Food Technology
Food Innovation Center
Indonesia International Institute for Life Sciences
Jl. Pulomas Barat Kav 88
Jakarta Timur

Phone 62 81 886 3332

Email: Iwan.Surjawan@i3L.ac.id

THANK YOU