Indonesian Instant Noodle Exports Enter Non-Traditional Markets, IEB Institute: The Trend Is Increasing

JAKARTA - The COVID-19 pandemic has prompted various countries to implement strict social activity restrictions policies to suppress mobility and people's activities outside the home. This further encourages people's tendency to save food as a form of anticipation of the extension of social restrictions, one of which is instant noodles which are very popular with the world community.

The results of observations made by the IEB Institute (Indonesia Eximbank Institute) as the research unit of the Indonesian Export Financing Institute (LPEI) stated that based on the World Instant Noodle Association, global instant noodle consumption reached 116.56 billion servings, and Indonesia was ranked second by consuming 12.6 billion servings. billion portions or equivalent to 10.84 percent of world consumption in 2020.

The increasing consumption of instant noodles was also confirmed by the results of a survey conducted by the Trailer Park Group Variety (TPG)/Variety Intelligence Platform Covid Impact Study which noted that people of productive age in the US watch more TV, movies and other digital media during the pandemic, which also boosted the consumption of instant noodles. consumption of instant noodles as a type of food that is easily processed and consumed when the time spent at home increases.

The Head of the LPEI IEB Institute Division, Rini Satriani said that Indonesia does not only consume domestically but Indonesian instant noodles has been exported with an increasing trend, including to non-traditional markets.

In 2020, Indonesia's total instant noodle exports reached 271.34 million US dollars, an increase of 22.96 percent year-on-year (yoy) from 2019 (220.7 million US dollars). The latest data shows the cumulative export value from January to September 2021 was recorded at 185.04 million US dollars," said Rini Satriani in a written statement, Thursday, December 9.

Indonesia's instant noodle exports in 2020 are mostly aimed at Malaysia (31.40 percent), followed by Australia (9.84 percent), Singapore (4.70 percent), the United States (4.51 percent) and Timor Leste (4.25 percent). percent). Indonesia's exports to these five destination countries in 2020 grew positively and on an increasing trend over the last five years (2016-2020), which is reflected in the annual growth rate over a certain period of time or reflects a positive Compound Annual Growth Rate (CAGR).

Based on the movement and observation of instant noodle export data for 2020-2021, the Head of the IEB Institute Division of the LPEI Rini Satriani explained, there are a number of Indonesia's main export destinations that have recorded an increase in demand for instant noodles from Indonesia.

These countries include Timor Leste (to 9.78 million US dollars), Cambodia (to 7.75 million US dollars), Taiwan (to 6.42 million US dollars), Vietnam (to 3.29 million US dollars). ) and Madagascar (to 1.98 million US dollars).

"This destination is a non-traditional market, so it gives a signal that market opportunities in the future are increasingly open not only for instant noodles but other processed food products," he said.

Based on Trade Map data, Indonesia is the fourth largest exporter of pasta products (HS-Code 190230) in the world in 2020 after China (17.55 percent), South Korea (16.75 percent) and Thailand (8.71 percent). Indonesia alone controls 7.48 percent of the world's export share of pasta products. Indonesia's largest export of pasta products (2020) is instant noodles with a portion of 88.49 percent, the rest are other types of pasta (11.12 percent), soun (0.27 percent) and vermicelli (0.11 percent).

"So it can be said that instant noodles and other pasta products from Indonesia have their own taste among noodle and pasta connoisseurs in the world, in accordance with LPEI's slogans #LokalyangMendunia and #SalamEkspor," concluded Rini Satriani.