COUNTRY PROFILE
Discover more about the Indonesia market including overviews about the retail, foodservice, and food-processing sectors. Events, resources, and more are linked throughout the profile.
$488.7 million
in processed food exports from the U.S. in 2023
3rd
largest market in Southeast Asia for the export of U.S. processed food products
281.5 million
total population in 2024
USDA’s Office of Agricultural Affairs (OAA) in Jakarta, hereinafter referred to as “FAS Post Jakarta,” reports that Indonesia’s longstanding ambition for self-sufficiency in key agricultural areas remains a high priority for the government. Accordingly, FAS Post Jakarta reports that import regulations are often complex and non-transparent, thus requiring close business relationships with a local agent. Getting a Food Product Registration (ML) number for imported retail packaged food products is complicated but required. Labels must be written in Indonesian and attached before entering Indonesia. Consumers tend to require smaller package sizes, and importers tend to require smaller shipment sizes, making shipments smaller and more costly.
Indonesia is currently the third largest market in Southeast Asia for the export of U.S. processed food products. In 2024, U.S. processed food exports declined 16% to US$406.8 million.
Top U.S. processed food exports to Indonesia in 2024 included:
$43.1 billion
estimated retail sales in the packaged food market in 2024
$66.7 Billion
By 2029, retail packaged food sales are estimated to grow to US$66.7 billion
76%
Traditional markets account for 76% of total retail food and beverage sales in Indonesia
According to Euromonitor, retail sales in the packaged food market in Indonesia are estimated to reach US$43.1 billion in 2024, making it by far the largest in Southeast Asia. By the year 2029, retail sales in the packaged food market in Indonesia are expected to reach US$66.7 billion.
FAS Post Jakarta reports that Indonesia’s growing youth population, middle class, and urbanization offer promising opportunities for U.S. exporters. Traditional markets still dominate the retail food and beverage sector, accounting for 76% of the market share, although they continue to lose market share to modern retail stores and e-commerce. Among modern retail channels, convenience stores make up the largest segment. Halal certification became mandatory for most food, beverages, ingredients, and additives, including all processed food products (domestic and imported) on October 17, 2024.
FAS Post Jakarta advises that the best prospective U.S. products for the Indonesian food retail market include fresh fruits, beef, cheese, snack foods, frozen food and sauces, dressings, and condiments. Products not present in significant quantities but which have good sales potential include wine, cherries, plums, avocados, blueberries, strawberries, pistachios, prunes, peaches, and soups and broths.
$638 million
The U.S. exported US$638 million of consumer-oriented products to Indonesia in 2023
79%
Full-service restaurants accounted for 79% of total foodservice sales in Indonesia in 2023
$26.3 Billion
The total value of Indonesia’s foodservice sector in 2023 was US$26.3 billion
FAS Post Jakarta reports that with a number of advantages, including a growing young and working population and a large domestic market, Indonesia presents excellent business opportunities for international and local hotel, restaurant, and institutional (HRI) foodservice players. Indonesia is the largest foodservice market among ASEAN countries. In 2023, the Indonesian hotel, restaurant, and institutional sector’s value totaled US$26.3 billion, up almost 13% from 2022. The value of foodservice sales also rose in 2023. Full-service restaurants accounted for 79% of total foodservice sales, followed by fast food (8%), cafés/bars (7%) and street stalls (5%).
FAS Post Jakarta advises that the HRI industry will continue to be a leading consumer of imported food items. Opportunities for high-value U.S. food items include dairy products, food preps. and misc. beverages, beef and beef products, processed vegetables, processed fruit, tree nuts, dog and cat food, condiments and sauces, and fruit and vegetable juice
11%
The U.S. is the third largest agricultural supplier to Indonesia, with an 11% market share
FAS Post Jakarta reports that overall, wheat, sugar, rice, soybean, beef, and dairy account for almost 43% of Indonesia’s total agricultural imports in 2023. The Indonesian Food and Beverage Industry Association (GAPPMI) notes that, for its food processing industry’s needs, Indonesia imports 80% of its milk ingredients, 70% of its soybean ingredients, 100% of its sugar and wheat ingredients, 80% of certain salts and beef, and 70% of fruit concentrates used in food and beverage manufacturing.
FAS Post Jakarta advises that primary ingredients such as wheat, refined sugar, soybeans, dairy, fresh fruit, and processed fruit have high demand and are frequently imported. Blending products used for enriching products such as corn starch, potato starch, dehydrated potato, garlic powder, onion powder, and chili powder, are also in demand.
