Gap In Indonesia's Food Export Industry Amid The COVID-19 Outbreak

Public discussion on the polemic of the corona virus (Mery Handayani / VOI)

JAKARTA - Since the world health organization (WHO) increased the status of the corona virus or COVID-19, the spread of this disease has become a global problem. A number of industrial and tourism sectors have also been affected by the outbreak of this virus.

One of them is the food and beverage sector. This is important related to the distribution of imported raw materials from other countries.

Even so, the General Chair of the Indonesian Food and Beverage Entrepreneurs Association or Gapmmi, Adhi S. Lukman said that until now the production of the food and beverage industry in the country has not been disturbed by the outbreak of the virus. According to him, Indonesia still has sufficient raw material supplies, so that production can still go on.

"There is no problem, domestic production is not disturbed. Only exports are disrupted," he said, after speaking in a discussion entitled 'Measuring the Corona Effect: Are We Ready?' in Central Jakarta, Saturday, February 29, 2020.

According to Adhi, Indonesia has the opportunity to increase exports of processed food and beverage products to China following the outbreak of the COVID-19. Because, currently, the supply of packaged food ingredients there is starting to run low.

"There is news that we can get opportunities to increase exports because processed food is being attacked in China. The local government urges its citizens not to consume fresh food, so many processed products are purchased," he explained.

Adhi admitted that his party had received direct requests from buyers in China to immediately send packaged food products, such as noodles and beverages such as aloe vera and juices. In fact, some buyers asked for the volume of shipments from Indonesia to be increased.

According to Adhi, this potential increase in export volume could reduce the trade balance deficit for processed food products by up to 50 percent by the end of the year. Based on 2019 data, Adhi noted that the trade balance deficit for processed food products in Indonesia reached 400 million US dollars.

This deficit, said Adhi, came from the realization of imports that were greater than exports. The realization of imports of Indonesian processed food products in 2019 touched 850 million US dollars. Meanwhile, the export realization for the same product was only 450 million US dollars.

However, currently, said Adhi, ports and airports in China are still closed. So, they cannot send logistics to China. Adhi hopes that in the near future the Chinese government will open access to shipments there.

"Hopefully March will run smoothly and there will be no problems," he said.