The Minister Of MSMEs Has Spoken Out About Food And Beverage Outlets Flooding The Indonesian Market

JAKARTA - Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurahman responded to the wave of expansion of MSMEs in the food and beverage sector (F&B) from China that flooded Indonesia. Brands such as Mixue, Wedrink, Heytea and Chagee that appear dominant are considered to be able to erode the MSME market.

Maman claims the government has made efforts to limit the invasion of foreign products, including from China. One of them is through regulations. Currently, his party is coordinating with the marketplace to make several incentives for MSME players, especially in the food and beverage sector.

"We have also tried to limit it, in many ways through regulations and policies. Now from the Deputy for Small Businesses (Ministry of MSMEs) we are calling several marketplaces to make several incentives," Maman told reporters at the Smesco Building, Jakarta, Wednesday, July 23.

Maman explained that many MSMEs have sold their products in the marketplace, including food and beverages. According to him, food and beverage products sold from MSMEs should receive different incentives from F&B products from outside.

"If food and drinks are local, they are produced locally, the incentives are certainly different from food and drinks from outside," he said.

However, Maman has not been able to confirm what kind of incentive will be given. Currently, his party is still reviewing. He emphasized that this step is an effort so that there is a difference between local products and goods from abroad.

"What is certain is that one of them is, for example, the percentage fee and so on. We are still reviewing what and how. So, so that there is a differentiation between local goods and goods from outside. So, it is a form of incentive," he said.

Based on research by a research institute from Singapore, Momentum Works, released in January 2025, the Chinese F&B has made a massive expansion into the Southeast Asia (ASEAN) region.

In the last three years, from 2022 to 2025, more than 6,100 Chinese F&B outlets have flooded the Asean market. The surge in expansion was driven by the sluggishness of the domestic market in China.

The study did not describe in detail the number of outlets in each country. However, around 4,000 outlets are spread across Indonesia and Vietnam.