ADHI LUKMAN

THE IMPACT OF AEC 2015 TO THE ASEAN FOOD INDUSTRY

INDONESIA PERSPECTIVE
9/17/2011 1
FOOD INGREDIENTS ASIA
UBM (ASIA),
THAILAND, 21 SEPTEMBER 2011
Chairman of GAPMMI
(INDONESIAN FOOD & BEVERAGES ASSOCIATION)
F I Asia in Indonesia 2010
9/17/2011 2
The Indonesian Strategic Planning, The Indonesian Strategic Planning,
Economy and F&B Industry
Development
FACTS:
Indonesia is an Archipelago Country with strategic
geographic location and strong global presence
Total land area Indonesia is around 1.922.570 km and sea
area is around 3.257.483 km
Second biggest coastline in the world with 54.716 km.
+/-13.000 Islands
237.6 millions populations (SUSENAS 2010), with socio
economic level :12% high, 40% medium, 48% low class
Average population growth within last 10 years 1,49 %
Dynamic and youthful population (55% <25 years old)
49.7 % Women, 50.3% Man (SUSENAS 2010)
Population distribution : Java 57,49%, Sumatera 21,3%,
INDONESIA 2011
49.7 % Women, 50.3% Man (SUSENAS 2010)
Population distribution : Java 57,49%, Sumatera 21,3%,
Sulawesi 7,31%, Kalimantan 5,8%, Bali /Nusa Tenggara
5,5%,andMaluku/Papua2,6%(SUSENAS2010)
Estimates 30 millions Peoples have strong buying power
58%livinginrural areaand 42%inurban
87% Moslem: Hallal & Thoyyiban
480 ethnics
Average expenditure for food per capita 45.69%(urban)
and 58.57% (rural), with average 50.62% (BPS, 2009)
Rice as a main staple food
Abundance of natural resources
3. STRATEGIC GEOGRAPHIC LOCATION
Indonesia lies strategically in the
intersectionof the Pacific Ocean, along
the Malacca Straits and the Indian ocean
Over half of all international shipping
travel through Indonesian waters
Leading ASEAN
The onlycountry in South-east Asia
that is a member of G-20
Chairmanof ASEAN in 2011
An active and strong voiceof
developing countries in global
discussions on issues around climate
change, global economy architecture,
etc.
Source: Supply Chain Leaders
ASEAN
THE NEW VISION OF INDONESIA
Government set a Master Plan to accelerate economic development, called MP3EI
(The Master Plan for the Acceleration and Expansion of Indonesias Economic
Development). And targeted to be 12 largest in the World in 2025.
Stepping up to Global Influence....
~12 largest ~12 largest
~8 largest ~8 largest
8 9 %per annum 5 6 %per annum
LOGICAL
ACTION PLAN
(up t o 2014)
The Action Plan strategy
LOGICAL
FRAMEWORK
OF THE
MASTERPLAN
22 Main
F & B
F&B is one of the main economic activities in MP3EI framework
9/17/2011 8
22 Main
Economic
Activities
FRAMEWORK OF GROWTH STRATEGY FRAMEWORK OF GROWTH STRATEGY
FEED INDONESIA -FEED THE WORLD
Sustainable National Food Security Sustainable National Food Security
Rice, Soybean,
Corn, Sugar
Palm Oil, Tea
Coffee, Cocoa
Mango, Orange,
Banana and
Horticulture
Cattle and
Poultry
Tuna and
Shrimp
Foreign Exchange Foreign Exchange
&&
Labor Force Labor Force
Food Self Food Self- -
sufficiency sufficiency
Main Commodity
Grand Strategy
Development of Agriculture Sector Into a Competitive and
In line with Government Strategy, Indonesian Chambers of Commerce & Industry
(KADIN) set a grand strategy called FI-FTW
9
Increase Value Added &
Marketing
Develop Domestic and Export
Markets
Build Indonesias Product Image
and Manage the Non-Tariff
Barrier
Develop Downstream Industry
Funding
Support the Agriculture
Sector
Establish an Agriculture
Bank
Strengthen the non
BankingInstitutions
(Cooperatives & LKM)
PanningImprovement
Improve the Spatial Planning
Develop the Infrastructure
Focus on Prime Commodities /
Develop
the Competitiveness
Increase Productivity
Develop Natural Resources and
Competent Human Resources
Develop and Implement Eco Green
Technology and R & D
Provide access to the Technology
Harmonization and Synchronization of Policies (Focused, Brief, Clear, Direct and Consistent)
Roadmap (Integrated Upstream Downstream, Focus on Superior Products With High Value Added)
Accurate and Updated Data Management
Development of Agriculture Sector Into a Competitive and
Sustainable Self-Sufficiency and Promotion of the
Prime Commodities to Become the Worlds Choice
2007 2008 2009 2010 2011* 2012*
GDP gowth (y-o-y, %) 6.3 6.0 4.5 6.1 6.5** 6.7***
Nominal GDP (current prices (Rp
trillions) 3,951 4,949 5,604 6,423 7,019 8,373***
GDP per capita (current prices, US$) 1,938 2,270 2,590 3,005 3,520 3,906
Population (mill) 225.6 228.5 231.4 237.6 243.7 249.0
Open unemployment rate (%) 9.8 8.6 7.9 7.6 7.0 6.7***
Inflation rate (%, year end) 6.6 11.2 2.8 7.0 4.61*** 5.3***
BI rate (%, year end) 8.00 9.25 6.50 6.50 6.75** 6.50
Key Strengths
Fiscal balance (%of GDP) -1.3 -0.1 -1.6 -1.0 -1.2 -1.5
Public debt (%of GDP) 35.2 33.0 29.5 28.3 26.4 25.0
Currrency (Rp/US$, average) 9,163 9,756 10,356 9,080 8,514** 8,800***
Current account balance (%of GDP) 2.4 0.1 1.9 1.2 1.0 1.0
Reserves (US$ billions) 56.9 52.1 66.1 96.2
123.2**
* 130.0
S&P's Rating BB- BB- BB- BB BB+ BBB-
**Semester 1 2011
***July 2011 (President speech 16 August 2011, RAPBN 2012) . Source: Bappenas, BPS
Steady GDP growth
5.5
6.3
6.1
4.5
6.1
6.5
5.7
6.2
5.8
6.5 6.5 6.5
06 07 08 '09 '10 est
'11
Q1
'10
Q2
'10
Q3
'10
Q4
'10
Q1
'11
Q2
'11
Source: BPS, Bank of Indonesia
Passing GDP per capita USD 3000
Break
USD 4000
Break
USD 3000
86 87 88 89 90 91 92 93 94 95 96 97 98 99 '01 '02 '03 '04 '05 '06 '07 '08 '09 10 11 12 13 14
Break
USD 1000
Break
USD 2000
USD 3000
Source: BPS
Inflation is kept low
6.0
8.0
10.0
12.0
14.0
16.0
18.0
%
Food Material
Processed Food
General
January July 2011 inflation rate at 4.61 %
9/17/2011 9/17/2011 13 13
Source: BPS, Kemenperin
-
2.0
4.0
6.0
2005 2006 2007 2008 2009 2010
Year
General
Category % Output % Number of
establishment
Big & Medium 86,79 0.52
F&B industry is dominated by Small and Home Industry
(SMEs), however they onlycontributed less than 15%
Are they ready to survive in the competition of global market?
Small 5,69 5,71
Home Industry 7,52 93,77
Source:BPS, Sensus2008
Year RP (Trillions)
2007 402
2008 526,6
2009 586
F&B industry output is estimated at about USD 80 billion
OUTPUT F&B (BPS, estimated by GAPMMI):
2009 586
2010 605
2011* 684
*Target, estimated growth 5 13 %
Industrial growth 2011 (y-o-y semester 1)
Sector Growth (%)
2005 2006 2007 2008 2009 2010 2011*
Economic Growth 5,69 5,50 6,35 6,01 4,58 6,10 6,49
Manufacturing industry 4.60 4.59 4.67 3.66 2.11 4.53 6.10
Non Oil & Gas Industry
5,86 5,27 5,15 4,05 2,56 5,09 6,61
F&B +Tobacco 2.75 7.21 5.05 2.34 11.29 2.73 9.34
Wood & Other Forest Industry (0.92) (0.66) (1.74) 3.45 (1.46) (3.50) 3.01
2011 F&B industrial growth estimated at 9.34%
The sector that always kept positive growth within last 5 years
Source : BPSdan Kementerian Perindustrian
Wood & Other Forest Industry (0.92) (0.66) (1.74) 3.45 (1.46) (3.50) 3.01
Paper & Printing 2.39 2.09 5.79 (1.48) 6.27 1.64 3.87
Fertilizer, Chemicals & Rubber 8.77 4.48 5.69 4.46 1.51 5.17 6.62
Cement & Non-Metal Mineral 3.81 0.53 3.40 (1.49) (0.63) 2.16 5.66
Textile, Leather & Footwear 1.31 1.23 (3.68) (3.64) 0.53 1.74 8.03
Base Metal, Iron & Steel (3.70) 4.73 1.69 (2.05) (4.53) 2.56 15.48
Transport equipment, Machinery & Equipment 12.38 7.55 9.73 9.79 (2.94) 10.35 4.41
Others 2.61 3.62 (2.82) (0.96) 3.13 2.98 6.21
7,099
8,357
7,498
7,775
8,129
8,542
8,155
7,960
7,462
8,085
7,442
7,916
7,632
6,727
7,268
7,181
7,677
7,198
Modern packaged food has grown double digit in 2011
Retail Audit: Indonesia Total Grocery | Food Department
8.8 8.4
9.6 9.8
11.7
8.2
11.8
12.4
7.1
1.5
12.7
10.9
13.9
10.9
11.9
10.8
11.9
13.3
Jan-
10
Feb-
10
Mar -
10
Apr -
10
May-
10
Jun-
10
Jul-
10
Aug-
10
Sep-
10
Oct-
10
Nov-
10
Dec-
10
Jan-
11
Feb-
11
Mar -
11
Apr-
11
May-
11
Jun-
11
Sales Growth vs. Last Year Sales Value (in billion)
Source: Nielsen Indonesia
-0.4
12.8
4.3
4.4
6.3
16.5
5.7
6.8
7.0
Volume Growth %
Value Growth %
Retail Audit: Indonesia Grocery | Top 10 | Volume & Value Growth % | Jan-Jun 2011 vs. YA
Instant Noodles
Powder Milk
Coffee
Biscuit
Detergent
F&B categories have been growing steady
4.4
21.3
3.8
5.3
-0.4
2.0
2.0
45.9
13.6
6.4
11.3
6.3
Value Growth %
Detergent
Cooking Oil
Sweetened Condensed Milk
Shampoo
Toilet Soap
Skincare
Source: Nielsen Indonesia
11.0
-0.4
5.5
22.9
17.1
5.5
13.5
27.0
14.7
12.2
Volume Growth %
Tea-RTD
Liquid Milk
Snack
Toothpaste
Baby Diapers
Retail Audit: Indonesia Grocery | Top 20 | Volume & Value Growth % | Jan-Jun 2011 vs. YA
Convenient and Healthy categories grow faster
1.6
1.5
0.5
-6.9
1.9
-1.1
8.6
0.4
2.1
6.6
27.0
Value Growth %
Stock Soup
Insectici des
Energy Drink
Non Powder Detergent
Cologne
Source: Nielsen Indonesia
Contribution by Sector in Manufacturing Industry 2005 2010 (%)
F&B manufacturing sector has increased contribution
Source : BPS, 2011
F&B and Tobacco
Investment Realization By Sector Year 2010In Indonesia
Transportations, Storage &
Telecommunications
(US$. billion)
Food Crops and Plantation
Food Industry
Transportations, Storage&
Telecommunications
Electricity, Gas & Water Supply
Other Services
Food industry is ranked 2
nd
in domestic investment realization and
5
th
in FDI realization
21
DomesticInvestment:
Food Crops & Plantation (208 projects worth US$ 3,22 billion); Food Industry (46 projects worth US$ 1,84 billion);
Transportations, Storage&Telecommunications(238projectsworthUS$1,55billion); Electricity, Gas&WaterSupply (47
projectsworthUS$0,55billion); andOtherServices(92projectsworthUS$0,37billion).
ForeignInvestment:
Transportations, Storage&Telecommunications(154projectsworthUS$. 5.0billion); Mining(298projectsworthUS$. 2.2
billion); Electricity, Gas&WaterSupply(59projectsworthUS$. 1.4billion); Real Estate, Industrial Estate&OfficeBuilding
(89 projectsworthUS$. 1.1 billion), andFoodIndustry(250projectsworthUS$. 1.0 billion).
(US$ 1 =IDR 8.900,-)
(US$. billion)
Telecommunications
Mining
Electricity, Gas & Water Supply
Real Estate, Industrial Estate &
Office Building
Food Industry
Source : BKPM
Domestic food industry has realized 1.7T IDR investment in
Q1 2011 and higher investment in Q2 2011 - 2.9T IDR
Sector Q1
(Trillions Rp)/
%
Sector Q2
(Trillions
Rp)/ %
Transport, Storage &
Communication
4.3/30.9 Food Crops and
Plantation
3.1/ 16.6
Non Metal Mineral 2.3/ 16.7 Food Industry 2.9/15.2
9/17/2011 22 Source : BKPM
Non Metal Mineral
Industry
2.3/ 16.7 Food Industry 2.9/15.2
Food Industry 1.7/ 12 Paper & Printing Industry 2.7/ 14.1
Electricity, Gas, and
Water
1.6/ 11.6 Metal, Machinery &
Electronic Industry
1.9/ 10.3
Food Crops and
Plantation
1.4/ 9.9 Transport, Storage &
Communication
1.7 / 9
Others 4.3/ 30.9 Others 6.6/ 34.9
Sector Q1
(USD
Billions)/ %
Sector Q2
(USD
Billions)/ %
Mining 1.0/ 23.2 Mining 1.5/ 31.5
Electricity, Gas, and
Water
0.6/ 13.8 Chemical &
Pharmaceutical industry
0.6/ 13.0
FDI Food Industry sector reached USD 0.3B in Q1 2011 and
add USD 0.27B in Q2 2011
9/17/2011 23
Water Pharmaceutical industry
Transport, Storage &
Communication
0.6/ 13.5 Metal, Machinery &
Electronic Industry
0.5/ 11.4
Food Crops and
Plantation
0.4/ 9.6 Transport, Storage &
Communication
0.5/ 9.6
Food Industry 0.3/ 6.8 Trade & Repairs 0.4/ 7.9
Others 1.4/ 33.1 Others
(Food Industry)
1.3/ 26.6
(0.27/ 5.5)
Source : BKPM
Others
US$ 2.2 B
Netherland
$ 0.6 B
Singapore
US$ 0.8 B
Singapore, Netherland and USA are top 3 foreign direct
investor
Japan
US$ 0.4 B
USA
US$ 0.6 B
South Korea
US$ 0.2 B
Source : BKPM
World Investment Prospects Survey 2008
2012 of the most attractive economies for
the location of FDI conducted by the United
Nations Conference on Trade and
Development (UNCTAD)
No. Countries
Ratings (Period of Year)
2010-2012 2009-2011 2008-2010
1. China 1 1 1
2. India 2 3 2
3. Brazil 3 4 5
4. USA 4 2 3
5. Russia 5 5 4
6. Mexico 6 12 11
7. Inggris 7 6 12
8. Vietnam 8 11 6
9. Indonesia 9 9 8
Indonesia was ranked 9
th
as major
destination for FDI. This result was based
on UNCTAD survey whose respondents are
25
10. Germany 10 7 7
11. Thailand 11 n/a n/a
12. Poland 12 13 13
13. Australia 13 8 n/a
14. France 14 14 15
15. Malaysia 15 n/a n/a
16. Japan 16 n/a n/a
17. Canada 17 10 10
18. Chile 18 n/a n/a
19. South Afrika 19 n/a n/a
20. Spain 20 n/a n/a
9. Indonesia 9 9 8 on UNCTAD survey whose respondents are
executives of Transnational Corporations
(TNC) from developed and/or developing
countries. UNCTAD consists of 193
member economies or countries.
Source: World Investment Prospects Survey 2010 2012, UNCTAD
Key Challenges: Key Challenges:
Natural resources potential, Changes in
Consumers habit & Market , Food Safety,
Regulation & Trade Channel
Development
Indonesia has a huge potential resources of Agriculture Commodity.
Position Rank in The World as follow:
Rank (in the World, by Quantity) Agro Commodity
1
Kapokseed in Shell, Cloves ,Palm oil, Palm kernels, Kapok Fibre,
Cinnamon (canella), Coconuts Leeks, other alliaceous veg, Vanilla
2 Cocoa beans, Nuts nes, Beans green, Natural rubber, Pepper (Piper
spp.)
3
Roots and Tubers nes, Rice paddy, Papayas, Sugar crops nes, Ginger ,
Other bird eggs,in shell
4
Manila Fibre (Abaca), Avocados, Pineapples, Coffee green, Chillies
and peppers green, Sweet potatoes, Cassava, Mangoes,
mangosteens, guavas, Fruit, tropical fresh nes
9/17/2011 27
mangosteens, guavas, Fruit, tropical fresh nes
5 Maize, Fruit Fresh Nes ,Spinach, Nutmeg, mace and cardamoms ,
Arecanuts
6 Bananas, Cashew nuts with shell, Tobacco unmanufactured,
Eggplants (aubergines)
7
Tea , Indigenous Chicken Meat, Cabbages and other brassicas
8
Maize green, Groundnuts with shell , Hen eggs in shell
9 Indigenous Goat Meat
10
Oranges, Cucumbers and gherkins, Beans dry, Mushrooms and
truffles, Indigenous Buffalo Meat
Source: FAO Statistical Yearbook 2009
Commodity Target 2010
(millions mTon)
Achievement2010
(millions mTon)
World Rank
Rice,paddy 34,9 36,3 3
Corn 16,5 17,8 8
Soybean 1,0 0,908*** 11
WhiteCrystal Sugar 3,3 2,7 3
RefinedSugar 1,5 2,4 n.a
CPO 23,6 19,8 1
Tea 0,154 0,150 7
Coffee 0,754 0,680 4
Cocoa 0,855 0.661 2
Production of some potential commodities in Indonesia
9/17/2011 28
Cocoa 0,855 0.661 2
BlackPepper n.a 0.022** 2
Nutmeg n.a 0.0075** 1
Chili n.a 1,3** 4
Fruit&vegetable n.a 9,096 15
Milk n.a 1,238 65
Chickenmeat n.a 1,527*** 7
HenEgg n.a 1,059*** 8
Cowmeat n.a 408 19
Fish&Seafood 9,7 10,862 1 in South East Asia****
Based on FAO Statistical Yearbook 2009 , KADIN and other sources
** estimated
***FAO, 2009
****SEAFDEC, 2008
However, still need to import some commodities to fulfill National
requirement
COMMODITY +/-PER YEAR (MTON)*
WHEAT 4.669.475**
CORN 1.500.000
SOYBEAN 900.000
GREEN BEAN 300.000
CASSAVA (dried) 900.000
GROUNDNUTS 195.000
9/17/2011 29
GROUNDNUTS 195.000
MILK 2.700.000
BEEF 75.000
Raw Sugar 2.400.000
SALT for consumption
(depend on seasons)
775.011**
*estimated
**2010
The Global Competitiveness
Index 2010-2011 rankings and
2009-2010 comparisons (139
Countries)
Unfortunately,
Indonesia GCI in the #
54 of 139 Countries in
the year 2010/2011,
even better than year
2011 World Economic Forum
even better than year
2009/2010.
Challenges for
Indonesia to improve
competitiveness
Indonesia in rank #5
within ASEAN
The Global
Competitiveness
Index 2010-2011 rankings
Within Developing Asia &
ASEAN
9/17/2011 31
2011 World Economic Forum
INFORMATION ERA INFORMATION ERA
(CONNECTED & TECHNOLOGY) (CONNECTED & TECHNOLOGY)
EDUCATION EDUCATION
SOCIAL STATUS & LIFE STYLE SOCIAL STATUS & LIFE STYLE
New Consumerism New Consumerism
Point of Point of
view/ food view/ food
Challenges ahead for food industry is that market &
consumer is changed
32 32
SOCIAL STATUS & LIFE STYLE SOCIAL STATUS & LIFE STYLE
New Consumerism New Consumerism
HEALTH CONCIOUS HEALTH CONCIOUS
RELIGIOUS RELIGIOUS
DISTRIBUTION DISTRIBUTION
CONVENIENCE CONVENIENCE
view/ food view/ food
value value
Digital technology change all aspect of life style Digital technology change all aspect of life style
Every incident quickly known around the world Every incident quickly known around the world Consumers behaviors Consumers behaviors
Some cases in food business: Some cases in food business:
Dioxin , Dioxin , Ukrainian Presidential candidate (2004)
Melamine case in China (2008) Melamine case in China (2008)
PDMS and TBHQ (anti-foaming agent) Mc-nugget in China (2010)
Nitrite milk scandal in China (2011) Nitrite milk scandal in China (2011)
TREND INFORMATION ERA
With digital/communication technology development will make the world to be more
connected
9/17/2011 33
Nitrite milk scandal in China (2011) Nitrite milk scandal in China (2011)
EHEC cucumber in Germany (2011) EHEC cucumber in Germany (2011)
DEHP in Food Products Taiwan (2011) DEHP in Food Products Taiwan (2011)
EE- -purchase, e purchase, e--procurement & e procurement & e- -trade change marketing system trade change marketing system accelerating accelerating
order process & sales order process & sales
Digital promotion , website, Hoax ,etc Digital promotion , website, Hoax ,etcboosting sales & knowledge boosting sales & knowledge . But, . But,
sometimes also spread misleading information (black campaign) quickly and will sometimes also spread misleading information (black campaign) quickly and will
impact to sales impact to sales
EDUCATION, SOCIAL STATUS & LIFE STYLE, HEALTH CONSCIOUS & RELIGIOUS: EDUCATION, SOCIAL STATUS & LIFE STYLE, HEALTH CONSCIOUS & RELIGIOUS:
More educated, well More educated, well--knowledge knowledge higher desire higher desire
Higher social status & lifestyle Higher social status & lifestyle
higher demand of high end product higher demand of high end product
new consumerism new consumerism
More health conscious More health conscious promotion claim: promotion claim:
High fiber, High fiber,
Education changed lifestyle
9/17/2011 34
High fiber, High fiber,
Low cholesterol, Low cholesterol,
Added vitamin, mineral, Omega Added vitamin, mineral, Omega- -3, etc 3, etc
Nutrition Facts Nutrition Facts
Functional food Functional food
Higher Higher awareness of religiosity awareness of religiosity Hallal, etc Hallal, etc
Awareness of Food Safety Awareness of Food Safety
Then, food business is regulated more strict in all over the world. More developed Then, food business is regulated more strict in all over the world. More developed
the country, more strict the regulation the country, more strict the regulation
Newconsumerism
Willingness to pay little extra for quality as a force
that encourages product differentiation and
thereby feeds investment in production and thereby feeds investment in production and
marketing of new goods
Murphy, Shleifer and Vishny (1989)
Source: The Rise of Asias Middle Class
Educated Consumers are more aware of Packaging label
9/17/2011 36
Nutrition
Facts
Hallal
Waste
concerned
Even though
Delicious
High Nutrition
If Not Safe
No Value
Challenges on Food Quality and Safety
37 37
Food Safety
Quality Standard
Healthy & Functional Food
Back to Nature
Food Additives concern
Label
Hallal/ Khouzier
Convenience
Local & Global
Trade
consideration
garbage
Concerning about Quality & Food Safety Integrated System
(Traceability)
HACCP
Production
facility
Farming
Post
Harvests
handling
Processing
Distribution Market
Consumer
FROM FARM
FROM STABLE
TO FORK
TO TABLE
38 38
Notes : HACCP = HAZARD ANALYSIS CRITICAL CONTROL POINT
GFP = Good Farming Practices GDP = Good Distribution Practices
GHP = Good Handling Practices GRP = Good Retailing Practices
GMP = Good Manufacturing Practices GCP = Good Catering Practices
handling
GFP
GHP
GMP GDP GRP GCP
Harvest
Post Harvest
Mutual Recognition Arrangement (MRA)
Pre Harvest
Low quality raw material Low quality raw material
Low quality Low quality
Careless handling, etc Careless handling, etc
Low processing cond. Low processing cond.
choosing low material choosing low material
bad sanitation bad sanitation
low processing, handling,etc low processing, handling,etc
Food Safety Critical Point
Management
SAFE VS COST
39 39
Bad packaging Bad packaging
choose wrong pack choose wrong pack
bad packaging process,etc bad packaging process,etc
Bad storage/ distribution/ retail Bad storage/ distribution/ retail
bad temperature control bad temperature control
bad humidity control bad humidity control
bad handling,etc. bad handling,etc.
Food Safety
SAFE VS COST
Food Safety
Peoples Welfare
Food Safety is important with higher Socio
Economic Status
Developed Countries have talked about Food Safety , while some other Underdeveloped
Countries still talking about Food Availability
Transformation of the
social status will
encourage the
business potential
Indonesia status?
ASEAN status?
Food Availability
Food Acceptability
Food Accessibility
business potential
Indonesian Middle Class has grown 50 million since 2003 to
become 131 million people in 2010
Class
Expenditure 2003 2010
(US$ per day) (%) population (%) population
Low
<$ 1,25 21.9 14.0
$ 1,25 $ 2 40.3 29.3
Middle
$ 2 -$ 4 32.1
37.6
36.5
54.5
$ 4 -$ 6 3.9 11.7
$ 6 -$ 10 1.3 5.0
$ 10 -$ 20 0.3 1.3
High >$ 20 0.1 0.2
"The Rise of Asia's Middle Class 2010" by ADB : within last 10 years, middle class growth very
fast from 25% or 45 millions in 1999 to become 42.7% or 93 millions in 2009.
While poor people decreased from 171 millions to 123 millions.
By 2025, Indonesia will be among six major emerging economies to account for more than half
of all global growth, says a new World Bank report. Other emerging economies include Brazil,
China, India, South Korea, and Russia, and as economic power shifts, these countries will help
drive growth in lower income countries through more commercial and financial transactions.
With a growing middle class in developing countries, consumption trends are likely to
strengthen, and eventually become a source of sustained global growth
Source: Susenas, BPS, World Bank report 2011
High >$ 20 0.1 0.2
DISTRIBUTION, CONVENIENCE : DISTRIBUTION, CONVENIENCE :
Consumers demand more quick services, comfortable & convenience store Consumers demand more quick services, comfortable & convenience store
Growth of modern market is higher than traditional Growth of modern market is higher than traditional
Young family , small family, & working people Young family , small family, & working people changing habits of changing habits of
consumption consumption
Changing Changing style & size of packaging style & size of packaging
Lifestyle changes demand a change in product, services
and distribution system, etc.
9/17/2011 42
Indonesia market is dominated by traditional stores and
both are growing in numbers
Shop type Universe 2010
Hypermarket 154
Supermarket 1,076
Minimarket 16,922
Impulse 108,567
Provision stores 2,297,592
Pasar Food Prep 12,936
Pasar RTC 6,134
Semi Retailer 55,120
Source: Nielsen Indonesia
82.9 82.1
81.5 80.7 80.4 80.8
79.8
76.2
74.5
Trade Channel Contribution | Total 56 Categories including cigarette
However in term of sales value, modern contribute to about
25% of the market
17.1
17.9 18.5
19.3 19.5 19.3
20.2
23.8
25.5
2002 2003 2004 2005 2006 2007 2008 2009* 2010*
Traditional Stores Modern Stores
17.1%
25.5%
*55 Cats (Jaguar) + Cigarette (Legacy)
Source: Nielsen Indonesia
YTD 2011 modern channel is still driver of the growth
of total market
11.1
Total
Indonesia
Trade Channel Value (Rp) Growth | Total 55 Categories | YTD 2011 vs. YA
8.2
15.6
Modern
Trade
Traditional
Stores
Source: Nielsen Indonesia
Modern Trade/Mini Market
Traditional Market
FMCG is shifting to modern distribution
9/17/2011 46
Traditional Market
Old Style
Traditional Market
New Style
Modern Market
However for fresh food, the wet market is still a preferred
channel by consumer
9/17/2011 47
The art of purchase with bargain
Interaction Seller -Buyer
More hygienic, convenience Fixed Price
Some of Modern Super Market/ Hypermarket in Indonesia
Foreign
investor enter
to Indonesian
market because
of potential
market.
Indonesia is #4
largest
9/17/2011 48
largest
population in
the world.
Soon, Metro
Germany will
enter to
Indonesia
market
Traditional Modern / Global
Modern premise may influence but not necessary eliminate
traditional
Lifestyle
for
modern
Young
generation
9/17/2011 49
generation
24 hours Mini Market is combined
24 hours Gasoline Station with Mini
A New Trend, new demandmore convenient &services for
Consumers
9/17/2011 50
24 hours Mini Market is combined
with Caf shop (upstairs)
24 hours Gasoline Station with Mini
Market
24 hours with
Wi-Fi services
INDONESIA REGULATION ,
RELATED TO FOOD INDUSTRY, QUALITY & FOOD SAFETY
UU No. 2/ 1966 : Hygiene Law
UU No. 2 /1981 : Metrology Law
Decree of Ministry of Health 722/Menkes/Per/88: Food Ingredients
UU No. 7 /1996 : Food Law
UU No. 8 /1999 : Consumer Protection Law
PP No. 69/1999 : Label & Advertisement
PP No.102/2000 : National Standard
UU No. 18 /2002 : National System for Research & Development and Technology Law
Decree of Ministry of Industry & Trade No.753/MPP/Kep/11/2002: Monitoring SNI
Local Government Decree DKI No.8/2004: Food Safety
PP No. 28/2004 : Food Safety, Quality & Food Nutrition
PP No. 68/2004 : Food Security
51 51
PP No. 68/2004 : Food Security
SK Ka. BPOM nomor 11/ 2004 : General Guidance for Food Labeling
Decree of Ministry of Industry RI 24/M-IND/PER/5/2006 : Production Monitoring & the Usage of
Hazardous Material for Industry
UU N0. 18/2009 : Livestock & Animal health
Per Ka BPOM No. HK.00.06.1.52.4011 28Oct09 : Determination Limit of Microbial and chemical
contaminants in food
UU No. 36/2009 : Health Law
Decree of Ministry of Industry24/M-IND/Per/2/2010: Tara Code on Food Label and Plastic
Packaging Recycling
Decree of Ministry of Industry 75/M-IND/PER/7/2010: Mandatory of GOOD MANUFACTURING
PRACTICES
SE Ka. BPOM HK.05.01.1.52.09.10.8502 : Application of Food Label Terms
Regulation from Ministry of Trade (Trade Goods Monitoring)RECALL
Regulation from Ministry of Agriculture, Ministry of Fishery & Marine Affairs (S & P, etc)
1. Liability to obtain Distribution Licenses from BPOM/NADFC* (before selling to market) :
A. No MD : For Domestic Product
B. No PIRT : For Domestic Product (SMEs)
C. No ML : For Import Product
2. Mandatory use Label in Bahasa Indonesia
3. HALLAL : Voluntary
4. Market Monitoring/Control:
A. BPOM (National) & Balai POM (Province & District)
B. Direktorat Pengawasan Barang Beredar (Ministry of Trade)
C. Tim Terpadu Pengawasan Barang Beredar (Tim TPBB) (Trade Minister Decree No:
780/M-DAG/KEP/10/2008. (Task Force to control Goods in Market)
Protection for Consumers
*NADFC =National Agency of Drug and Food Control
1. Trade Minister Decree No. 56/2008 , jo. No. 60/2008, jo. No. 23/2010 : Import Product
under Control (including Food Product) through Specific Port (Belawan ,Medan; Tanjung
Priok ,Jakarta; Tanjung Emas ,Semarang; Tanjung Perak, Surabaya; Soekarno Hatta ,
Makassar; Dumai, Dumai; Jayapura and InternasionalAirport). Expired 31 December 2010
and extended by
2. Trade Minister Decree No.57/2010 (expired 31 December 2012)
3. Trade Minister DecreeNo.54/M-DAG/PER/10/2009 , 45/M-DAG/PER/9/2009, 17/M-
DAG/PER/3/2010 (Import Requirement :API, IT, IP, etc)
Import Monitoring
Towards Global Market & AEC 2015
EVOLUTION OF TRADE IN THE WORLD
Global Condition of Food Trade:
Borderless
Less Tariff Barrier
More non-tariff barrier/measure on Food safety and quality
Food Regulation as a protection to Consumers & Local Industry
Product competitiveness is depend on how to manage Food Safety as an
advantage to the market
Global Condition of Food Trade:
Borderless
Less Tariff Barrier
More non-tariff barrier/measure on Food safety and quality
Food Regulation as a protection to Consumers & Local Industry
Product competitiveness is depend on how to manage Food Safety as an
advantage to the market
expanding to
Eastern Europe
Main Regional FTA
NAFTA
Population: 445 million
GDP: US$15.857 trillion
EU
Population: 491 million
GDP: US$ 14.38 trillion
CHINA
Population: 1.330 billion
GDP PPP: US$ 6.991 trillion
JAPAN
Population: 127 million
GDP PPP: US$ 4.29 trillion
FTA Canada Chile 1997
FTA : Chile Mexico 1999
FTA : USA Chile 2004
FTA : USA Singapore 2004
FTA : USA Australia 2005
FTA : Mexico Japan 2005
FTA : Chile Brunei NZ
Singapore 2006
NAFTA
U.S.A.,
Canada,
Mexico ASEAN-Japan
Comprehensive
Japan-Korea FTA
(under negotiation)
Japan-Mexico EPA
(signed agreement)
EU-MEXICO
FTA
EU
27 countries
ACP-EU
Countries in Africa
Japan-Korea-China FTA
(under negotiation)
expanding to
Latin America
Source : CIA Factbook
(2007)
ASEAN
Population: 575.5 million
GDP: US$ 3.431 billion
MERCOSUR
Argentina, Brazil,
Paraguay, Uruguay
FTAA
(by 2005)
under negotiation
SAPTA
Bangladesh, Bhutan,
India, Maldives,
Nepal, Pakistan, Sri
Lanka
China - ASEAN FTA
Comprehensive
Economic Partnership
(AJCEP)
Japans Bilaterals:
Japan-Singapore EPA
Japan-Philippines EPA
Japan-Thailand EPA
Japan-Malaysia EPA
Japan-Indonesia EPA
AFTA
Indonesia, Malaysia,
Philippines, Singapore,
Thailand, Brunei, Vietnam,
Laos, Myanmar, Cambodia
India - ASEAN FTA
II CECA
Countries in Africa
and the Caribbean
(approx. 70
countries)
Japan-
Mexico EPA
(signed agreement)
Australia-New Zealand-ASEAN FTA
Korea - ASEAN FTA
Source : CIA Factbook
(2007)
Bilateral Negotiation and Preparation (in progress)
1. Indonesia - EFTA
President RI and President
Switzerland, July 8
th
2008
2. Indonesia India
President RI President of India,
Jan 2011
1. Trade in Goods (TIG)
2. Rules of Origin (ROO)
3. Trade Remedies
4. Trade in Services (TIS)
5. Intellectual Property Rights (IPR)
56 56
3. Indonesia Australia
President RI and President of
Australia, Nov 2
nd
2010
4. Indonesia EU
President RI and President of EU
Commission, Dec 2009
6. Government Procurement
7. Technical Cooperation / Capacity
Building
8. Other Issues
9. Legal Text
AEC 2015
Single market
and
production
base
Highly
competitive
region
Region of
equitable
economic
development
Integration
into the global
economy
POPULATION 0F ASEAN PLUS
into one big region, will transform market to be a huge potential in the world
(more than 50%of population in the world)
Rank Country / Territory Population Date of estimate %of World population Source
4 Indonesia 237,556,363 May 2010 3.42% 2010 Indonesian Census
12 Philippines 94,013,200 Mid-2010 1.35% National Statistics Office medium projection
13 Vietnam 87,375,000 2011 1.26% Official estimate
19 Thailand 67,041,000 July 1, 2010 0.97% Key Statistics of Thailand, 2009,
(Population projections). National Statistics Office of Thailand
26 Myanmar 47,963,000 2010 0.73% UN estimate for 2010
44 Malaysia 27,565,821 2010 0.4% The 2010 Population and HousingCensus (Census 2010)
1 China
n2
1,339,724,852 November 1, 2010 19.3% 2010 China Census
2 India 1,210,193,422 March 1, 2011 17.44% Provisional 2011 Indian Census result
10 Japan 127,950,000 June 1, 2011 1.84% Official Japan Statistics Bureau
25 South Korea 48,988,833 2011 0.71% Statistics Korea
51 Australian5 22,688,987 August 26, 2011 0.33% Australian Official Population Clock
123 New Zealand 4,414,700 August 26, 2011 0.064% Official New Zealand Population clock
44 Malaysia 27,565,821 2010 0.4% The 2010 Population and HousingCensus (Census 2010)
69 Cambodia 13,395,682 March 3, 2008 0.19% Cambodian 2008 Census
104 Laos 6,230,200 2010 0.09% Official estimate
116 Singapore 5,076,700 June 30, 2010 0.073% Statistics Singapore
173 Brunei 399,000 2010 0.006% UN estimate for 2010
Rank Country
GDP
(millions of USD)
World 62,909,274
People's Republic of China 5,878,257
Japan 5,458,872
South Korea 1,007,084
ASEAN 1,843,846
1 Indonesia 706,735
2 Thailand 318,850
List of ASEAN countries GDP (nominal),
International Monetary Fund 2010 estimates.
Contribution of
ASEAN Plus:
29.60 % of the World GDP
9/17/2011 59
2 Thailand 318,850
3 Malaysia 237,959
4 Singapore 222,699
5 Philippines 188,719
6 Vietnam 103,574
7 Burma 35,646
8 Brunei 11,963
9 Cambodia 11,360
10 Laos 6,341
Huge
Potential
NEGARA
Total Jan -Des
2010
%
Total Jan -Juni
2010
%
Total Jan -Juni
2011
%
Perubahan total Jan -
Mei 2011 vs Jan - Juni
2010 (%)
SINGAPORE 18,594,124.95 8.61% 7,557,698.96 7.76% 8,885,102.96 7.89% 17.56%
MALAYSIA
36,560,417.14 16.92% 15,805,997.71 16.24% 27,817,515.12 24.70% 75.99%
THAILAND
34,263,024.06
15.86%
14,069,305.50
14.45%
11,470,218.87
10.18%
-18.47%
VIETNAM
806,493.46
0.37%
167,311.81
0.17%
1,444,108.13
1.28%
763.12%
PHILIPPINES 10,124,127.46 4.69% 5,254,819.12 5.40% 6,604,477.15 5.86% 25.68%
Import of Packaged Food Product through Special Port Zone.
Unfortunately, data showed that import value is increased
significantly
9/17/2011 60
PHILIPPINES 10,124,127.46 4.69% 5,254,819.12 5.40% 6,604,477.15 5.86% 25.68%
sub total 100,348,187.07 46.45% 42,855,133.10 44.02%
56,221,422.23
49.91%
31.19%
CHINA
31,121,990.92
14.40%
15,086,438.47
15.50%
14,506,477.82
12.88%
-3.84%
HONGKONG
8,073,001.67
3.74%
4,019,169.73
4.13%
-
0.00%
-100.00%
sub total 39,194,992.59 18.14% 19,105,608.20 19.63%
14,506,477.82
12.88%
-24.07%
NEGARA LAINNYA 76,508,033.60 35.41% 35382502.49 36.35%
41,910,527.14
37.21%
18.45%
TOTAL 216,051,213.26 100.00% 97,343,243.79 100.00%
112,638,427.19
100.00%
15.71%
Source : Kemendag
No. COUNTRY
Export Import
2010 Jan-May 2011 2010 Jan-May 2011
Value (US$) Value (US$) Value (US$) Value (US$)
1BRUNEI DARUSSALAM 10,058,998 5,481,151 0 0
2CAMBODIA 173,427,484 76,937,038 684,169 217,800
3LAO 0 0 0 0
4MALAYSIA 881,372,960 383,393,955 301,014,176 156,217,386
5MYANMAR 1,887,581 2,362,399 0 0
6PHILIPPINES 290,964,189 100,154,459 16,129,712 10,012,868
7SINGAPORE 280,046,449 101,187,340 68,544,628 29,956,561
Trade value is still very small compared to its potential
All F&B Trade between INDONESIA -ASEAN
9/17/2011 61
7SINGAPORE 280,046,449 101,187,340 68,544,628 29,956,561
8THAILAND 105,898,492 53,510,761 625,369,913 501,344,088
9VIET NAM 93,159,927 36,941,605 6,816,953 5,639,511
Total 1,836,816,080 759,968,708 1,018,559,551 703,388,214
Source: BPS, calculated by Ministry of Trade
Still plenty of ROOM to improve Trade and exploit the Potential
Keep developing new product & innovation to produce Added Value Product,
exotic, etc. Thus this kind of exhibition is valuable to be visited , exploring new
items , more competitive items substitution, etc.
PROCESSED FOODS ITEMS IMPORTED BY INDONESIA FROM ASEAN 2006-2011
(as of 23 Aug 2011)
Malaysia products dominate the products imported in Indonesia
Food Category PHIL MAL SIN THAI VIET TOTAL ASEAN*
1. Dairy products and analogues 34 187 47 44 2 314
2. Fats, oils and Fat emulsions - 39 68 4 - 111
3. Edible ices - 22 - 1 - 23
4. Fruits and vegetables 6 172 112 259 1 550
5. Confectionery 37 788 44 152 17 1,038
6. Cereals and cereal products 43 1,362 157 232 16 1,810
7. Bakery wares - 1 3 - 1 5
62
Source: BPOM, 2011
7. Bakery wares - 1 3 - 1 5
8. Meat and meat products - 90 19 - 8 117
9. Fish and fish products 1 186 33 76 2 298
10. Eggs and eggproducts - - - - - -
11. Sweeteners, includinghoney 11 9 3 2 - 25
12. Salts, spices, soups, sauces, salads, protein products 4 260 202 120 14 600
13. Foodstuffs intended for particular nutritional uses 15 35 5 17 - 72
14. Beverages, excludingdairy products 21 687 287 89 6 1,090
15. Ready-to-eat savouries 7 458 79 190 7 741
16. Composite foods 3 8 27 - 2 40
TOTAL FOOD ITEMSIMPORTED 182 4,304 1,086 1,186 76 6,834
PROCESSED FOODS ITEMS IMPORTED BY INDONESIA
From ASEAN & Other Countries 2006-2011 (as of 23 Aug 2011; BPOM, 2011)
ASEAN product take portion of 32.92 %
Food Category ASEAN Others Total
1. Dairy products and analogues 314 575 889
2. Fats, oils and Fat emulsions 111 383 494
3. Edible ices 23 27 50
4. Fruits and vegetables 550 1,453 2,003
5. Confectionery 1,038 1,841 2,879
6. Cereals and cereal products 1,810 3,035 4,845
7. Bakery wares 5 4 9
63
7. Bakery wares 5 4 9
8. Meat and meat products 117 101 218
9. Fish and fish products 298 159 457
10. Eggs and eggproducts - 4 4
11. Sweeteners, includinghoney 25 118 143
12. Salts, spices, soups, sauces, salads, protein products 600 1,283 1,883
13. Foodstuffs intended for particular nutritional uses 72 175 247
14. Beverages, excludingdairy products 1,090 3,816 4,906
15. Ready-to-eat savouries 741 744 1,485
16. Composite foods 40 209 249
Total Food Items imported 6,834 13,927 20,761
(%) 32.92 67.08 100.00
Trade
Value US$
2006 2007 2008 2009 2010
JAN-MAR
10
JAN-MAR
11
Export
5,100,866 9,201,490 8,318,669 10,183,313 20,961,439 3,473,220 3,476,354
Export Import F&B Product between Indonesia -China
Comparing with ASEAN. The trade value Indonesia -China is smaller than its
potential
9/17/2011 64
5,100,866 9,201,490 8,318,669 10,183,313 20,961,439 3,473,220 3,476,354
Import
59,304,091 65,719,433 84,002,073 45,095,424 60,183,481 12,699,837 9,963,402
Source: BPS (calculated by Data Centre Ministry of Trade)
During his visit to Indonesia last April, Excellency PM Wen Jiabao talked about trade relations between
Indonesia -China in the context of ACFTA:
Strengthen Good-Neighbourly Relations and Deepen Mutually Beneficial Cooperation. Entering the
new century, our two countries have enjoyed frequent high-level exchanges, deepening political mutual
trust and fast growing business cooperation. The establishment of the strategic partnership in 2005
brought our bilateral relations to a new stage. Last year, two-way trade approached 43 billion U.S.
dollars, making China one of Indonesias major trading partners and export markets
ASEAN Balance of trade with selected trading partner countries
ASEAN trade with China has always been in deficit, also with Japan before turning into a modest surplus in
2006 & 2007.
On the other hand, ASEAN has maintained trade surplus with theUSA,EU25,Australia,NewZealand,India,
Canada and Pakistan since 1998.
65
Source: ASEAN Secretariat (2010)
Intra and Extra Trade ASEAN
About 25% trade is Intra-ASEAN. Means , ASEAN is still more trade
dependence with Extra-ASEAN. Hope to bigger trade Intra-ASEAN after
AEC
66
Source : http://www.aseansec.org/22073.htm,
ASEAN Economic Minister Meeting
ASEAN Senior Economic Official Meeting(SEOM)
ASEAN Consultative Committee on Standards and Quality (ACCSQ)
WG 1 WG 2 WG 3 JSCEEMRA ACC PPWG PFPWG APWG TMHSPWG
To prepare Single Market & Production Base in AEC 2015, ASEAN
formed ACCSQ Structure to evaluate all aspect trade,
and PFPWG for food & foodstuff has been formed
WG 1
Working
Group on
Standards
and Mutual
Recognition
Arrangement
s (MRAS)
WG 2
Working
Group
Accreditatio
n and
Conformity
Assessment
WG 3
Working
Group on
Legal
Metrology
JSCEEMRA
Joint Sectoral
Committee for
ASEAN
Sectoral MRA
for Electrical
and Electronic
Equipment
ACC
ASEAN
Cosmetic
Committee
PPWG
Pharmaceutic
al Product
Working
Group
PFPWG
Prepared
Foodstuff
Product
Working
Group
APWG
Automotive
Product
Working
Group
TMHSPWG
Traditional
Medicines
and Health
Supplements
Product
Working
Group
WBPWG
Wood-Based
Product
Working
Group
RBPWG
Rubber-Based
Product
Working
Group
MDPWG
Medical
Devices
Product
Working
Group
9/17/2011 67
Aspect to be Identified:
Food Safety
Labeling
Registration
Hallal
Specific Requirements
HARMONIZATION & STANDARD IN ASEAN TOWARDS AEC 2015
1
st
Commodity Priorities 2
nd
Commodity Priorities
HS 1704; GSFA 05.2, 05.2.1,
05.2.2, 5.2.3, 05.4
HS 1904; GSFA 06.3, 06.7
HS 2007; GSFA 04.1.2.5
HS 1702; GSFA 11.2
HS 1704; GSFA 05.3
HS 1805; GSFA 05.1.1
HS 1903; GSFA 06.0,06.2.1, 06.2.2
HS 1905; GSFA 07.0, 07.1, 07.1.1, 07.1.1.1, 07.1.1.2,
07.1.2, 07.1.3, 07.1.4, 07.1.5, 07.1.6, 07.2, 07.2.1,
07.2.2, 07.2.3
HS 2001; GSFA 04.2.2.3, 04.1.2.3
1
st
& 2
nd
Commodity Priority have been decided to implement ASEAN Standards
9/17/2011 68
HS 2001; GSFA 04.2.2.3, 04.1.2.3
HS 2006; GSFA 04.1.2.6; 04.1.2.5 (except nuts), 04.1.2.7,
04.1.2.11
HS 2008; GSFA 04.1.2.2(Except nuts and sweetening
matter)
HS 2101; GSFA 14.1.5(excluding cocoa)
HS 2103; GSFA 12.6
Harmonization of Food Standard will impact to
Food Business (especially to SMEs) & Consumers behavior
Conclusion
Indonesia in AEC 2015
Actions to improve
Indonesia
Market
Potential
Indonesia is strategic, with stable economic growth.
Potential , with GDP growth and Population
Potential for investment , to optimize natural resources and produce Added Value
Product
F&B industry kept positive growing . In terms of number establishment, is
dominated by SMEs, but value by Big Medium enterprises
Market is dominated by Traditional market but Modern trade is growing faster
Middle class has grown fast
Business Potential
9/17/2011 70
Consumers
Consumers will potentially change to increase the business
More educated & changed Life style
New consumerism
More concerned about Food safety & Health
Hallal concerned (more religious)
AEC2015
Trade Intra-ASEAN is smaller than Extra-ASEAN
Huge potential because of natural resources, Population &
GDP (including ASEAN Plus)
Optimizing business & sources potential for mutual benefit
Expanding INVESTMENT to explore Huge Natural
Resources , combining with Advanced Technology owned
by ASEAN Countries to produce more VALUE ADDED
PRODUCT, as a basis production to be more competitive in
WHAT TO DO INDONESIA in ASEAN
9/17/2011 71
AEC2015
PRODUCT, as a basis production to be more competitive in
global market
Improving Trade Value and open for more MARKET ACCESS
Need more understanding and tolerance about standard &
procedures. Trying to harmonize & standardize to be a
Production base & Single Market
Cooperation
among
Need to build MRA to reduce Trade Barriers
Eliminating NON-TARIFF MEASURE as much
as possible , without ignoring FOOD SAFETY
Standard
Economic Partnership to minimize
constraint of social status differences/gap,
especially SMEs in the Country
WHAT TO DO INDONESIA in ASEAN
9/17/2011 72
among
Countries
especially SMEs in the Country
CAPACITY BUILDING for SMEs Industry to
understand about global market, standard,
and market integration
NEED A CLOSER COOPERATION
INDONESIA ASEAN towards
AEC 2015
73 73 9/17/2011 9/17/2011