Homecoming Banned, Beverage Food Entrepreneurs Worry Demand Weakens

JAKARTA - Chairman of the Indonesian Food and Beverage Association (GAPMMI), Adhi S. Lukman said the demand for processed food products has now shown improvement. However, the announcement of a ban on Eid al-Fitr 2021 slightly weakens demand from retailers.

"Towards the end of March there was an announcement from the government there are travel restrictions, should not go home, and so on. This slightly weakens demand from retailers, which we worry will repeat like last year", he said in a virtual discussion 'Food Availability Ahead of Ramadan and Eid al-Fitr', Monday, April 12.

Adhi hopes that concerns about a decline in demand like last year will not occur in 2021. He is optimistic that Eid al-Fitr this year will be better than last year.

"Hopefully this doesn't (happen), and we hope the government starts to rethink what needs to be decided", he said.

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Adhi said the demand for processed food products has increased since January 2021. Overall food demand was 34 percent contributed by processed food products, and 66 percent from work food and household food.

Furthermore, he said many modern retailers have started to request the delivery of processed food stocks to meet the needs of Ramadan and Eid al-Fitr, as well as traditional markets. This shows that there is already a process of economic recovery.

"The food and beverage industry has increased since January. We feel very optimistic that Lebaran this year is better than last year", he said.