The last year 2017, the food and beverage industry became the most significant contributor to the national gross domestic products (GDP), with a contribution of 30%, precisely 34.33%. Annually, a contribution of this sector was increasing by 0.77%, from 8.46% in 2016 to become 9.23% in 2017.

For this year 2018, PT. Visi Globalindo Data Utama predicts that the food and beverage industry will remain as the most significant contributor to the national GDP. The industry will only grow by 8.71% this year or decreasing from 2017. The weakening rate of Rupiah against US dollar becomes the primary influencing factor for the decrease. It is a fact that the increasing rate of Rupiah to above IDR 14,000 per US dollar will make the sales price of consumption goods increasing. It is eventually will worsen the purchasing power of the people, particularly low-income people.

In another side, as stated by Director General of Agro-Industry of the Ministry of Industry, Mr. Panggah Susanto, the national food and beverage industry will remain increasing positively in 2018, in a condition that there are favorable policies or regulations to support the increased production of the industry. The Ministry of Industry predicts that this year, the national food and beverage industry will grow by 8-9% as the average target.

According to the Ministry of Industry, several factors are influencing the development of the national food and beverage industry. The factors include the increasing target of investment and some deregulations to ease the supply of raw material for the industry. Moreover, because this 2018 is a political year, so the increasing circulation of money is expected to also increase the consumption of food and beverage products this year.

Meanwhile, investment in the food and beverage sector is still dominated by the local players. Based on data from Badan Koordinasi Penanaman Modal (BKPM), the domestic investment (PMDN) recorded 60.04% of the total realization of investment in 2017.