Industry leaders in the Indonesian food and beverage sector are advocating for the creation of a significant food innovation center to drive innovation, research and development, and market expansion for local companies, particularly SMEs. Drawing inspiration from existing centers in countries such as Singapore and New Zealand, the establishment of a centralized innovation hub in Indonesia is seen as a means to bolster local food businesses, promote sustainable production, and elevate food safety protocols, ultimately enabling them to enhance competitiveness in both local and global markets.
Industry leaders and experts, including representatives from the Indonesian Food and Beverage Association (GAPMMI) and the Asia Pacific Food Innovation Network (APacFIN), emphasise the strategic value of a food innovation centre in Indonesia, from fostering public-private collaboration to providing SMEs with essential resources for growth. Such a centre would offer invaluable services like regulatory advice, R&D support, and access to state-of-the-art technology, empowering Indonesian companies to push boundaries in innovation and scale up for global success.
Market Trends
As Southeast Asia’s largest economy, Indonesia’s food sector is poised for growth but lacks the infrastructure to fully support local food innovation. Countries such as Singapore and New Zealand have leveraged food innovation centres to drive transformative industry advancements. These centres play a crucial role in creating ecosystems that connect academia, industry, and government, facilitating knowledge exchange, research support, and technological advancement. For instance, Singapore’s FoodPlant and New Zealand’s Food Bowl provide companies with access to high-end R&D facilities, regulatory guidance, and pilot production facilities, enabling them to scale new products and compete internationally.
The Indonesian Food and Beverage Association (GAPMMI) sees a similar potential for Indonesia. According to Elvira Indrawati of GAPMMI, a food innovation centre could catalyse productivity and innovation, particularly for SMEs that often lack resources for R&D and market entry. The centre would help small and medium-sized enterprises access advanced equipment, regulatory advice, and market insights, all essential for sustainable growth and competitiveness.
Grant Verry, Chief Executive of the New Zealand Food Innovation Network (NZFIN) and Chair of APacFIN, further underscores the need for such a facility, highlighting that a robust innovation hub would enable greater commercialisation opportunities for Indonesian companies. He envisions that access to international food technology and innovation networks could assist Indonesian companies in navigating regulatory constraints and compliance, thereby facilitating easier entry into export markets.
Strategic Actions
Establish a Comprehensive Food Innovation Hub for SMEs
To support SMEs in developing innovative products, a large-scale food innovation centre should offer a range of services tailored to smaller enterprises. Key actions include:
Provide Access to Advanced R&D Facilities: Equip the centre with state-of-the-art labs and pilot production facilities to allow SMEs to test and scale product ideas cost-effectively.
Offer Regulatory and Compliance Guidance: Provide workshops and consultations on navigating Indonesia’s regulatory landscape, as well as international standards, to facilitate smoother market entry for SMEs.
Enable Public-Private Partnerships: Encourage collaborations with universities, government bodies, and industry experts to offer practical insights, research, and support for developing innovative food products.
By creating an accessible hub for R&D and compliance support, Indonesia’s SMEs can overcome resource constraints and introduce more competitive, innovative products to the market.
Focus on Sustainable and Safe Food Production
Addressing sustainability and food safety concerns is essential for both domestic growth and international competitiveness. Recommended steps include:
Promote Sustainable Practices and Technologies: Implement programs that educate SMEs on sustainable food production methods, providing access to technologies and practices that reduce environmental impact.
Conduct Food Safety Training: Establish food safety protocols and provide training to help businesses meet local and international standards, building trust among consumers and regulators.
Research Sustainable Ingredients and Packaging: Encourage innovation in sustainable ingredients and eco-friendly packaging, aligning with global market trends toward sustainability.
Supporting sustainable production practices will enable Indonesia’s food sector to meet global demands for environmentally responsible products and strengthen the country’s reputation as a quality food producer.
Leverage International Innovation Networks for Commercialisation
Linking the Indonesian centre with APacFIN and other international networks could greatly enhance export potential. Key actions include:
Foster Global Partnerships: Connect with established food innovation centres in the APacFIN network to access international expertise, technology, and market knowledge.
Provide Export Training and Support: Offer specialised training on export regulations and market access requirements for countries like Singapore, Australia, and New Zealand.
Create In-Market Testing Opportunities: Collaborate with international partners to pilot-test Indonesian products in foreign markets, refining products for diverse consumer preferences.
A dedicated food innovation centre in Indonesia could transform the local food and beverage industry, empowering domestic companies with the tools, knowledge, and networks needed to innovate and compete internationally. With the backing of industry leaders and APacFIN, Indonesia has a unique opportunity to advance its food sector, setting the stage for sustainable growth and increased global market share.
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