Open Career Opportunities to Empower Local Farmers, Oxford Study Reveals Positive Impact of the Culinary Industry

JAKARTA - The need for labor in the food and beverage service sector continues to increase in line with the growth of the culinary industry in Indonesia.

A number of studies show that this sector not only opens up employment opportunities directly, but also creates job opportunities in various other sectors that are connected in the supply chain, from agriculture to distribution.

One of the studies conducted by independent research firm Oxford Economics shows that the operation of a fast food restaurant chain in Indonesia, McDonald's Indonesia has a fairly wide impact on the culinary industry ecosystem to labor.

The analysis assesses the company's contribution in terms of employment, supply chain, and social activities. Based on the study results for the period April 2024 to March 2025, every 100 employees directly employed by the restaurant chain are able to support around 330 additional jobs in other sectors.

The impact comes from economic activities involving suppliers of raw materials, logistics distribution, to various supporting services.

In addition to the chain effect on the labor market, the study also found a multiplier effect on economic activity. Every Rp1 million of economic value generated directly by the company is able to trigger around Rp4.9 million of additional economic activity in various sectors.

"Our research shows that the company's operations make a real contribution to the business world and the local community, particularly through job creation and partnerships with domestic suppliers," said Associate Director of Oxford Economics, Stephen Foreman.

In Indonesia, the restaurant chain has been operating for more than three decades and now has more than 300 outlets spread across 94 cities. In its development, the company also adopts various local elements, both in terms of menu and business partnerships with domestic business players.

The company's management representative said that business development in Indonesia is aimed at strengthening collaboration with various parties, from suppliers to local labor.

"We want to ensure that every business step not only focuses on company growth, but also has a relevant impact on the local economy through partnerships and employment opportunities," said a management representative.

The economic contribution in the Indonesian culinary industry is also seen from the strengthening of the domestic supply chain. The study notes that around Rp3.8 trillion or around 86 percent of the total spending of the company's suppliers is allocated to local partners, including business actors in the agricultural, livestock, and manufacturing sectors.

Around 76 percent of restaurant raw materials are sourced domestically, including chicken, vegetables, eggs, rice, chili, and cooking oil produced by local suppliers.

One of the supplier partners said that long-term partnerships with the restaurant chain helped business development and expanded economic impact to the agricultural sector.

"The collaboration that has been established for decades gives us room to grow. From a small business, we can now involve hundreds of farmers in several areas to supply the raw material needs," said Made Gunada, one of the supplier partners.

Apart from the supply chain, the study also highlights the role of the culinary industry as one of the entry points for young people into the workforce.

Overall, the company's business ecosystem is estimated to support around 48,700 jobs in various sectors. Of that number, around 11,000 are direct employees working in restaurants and company operations.

As many as 43 percent of the workforce are in the age range of 18 to 24 years old, making this sector one of the starting places for young people to get to know the world of professional work.

"For many young people, the first job is often a place to learn discipline, teamwork, and responsibility before stepping into the next stage of their careers," said Nurlaila, one of the restaurant's employees who is 22 years old.

The study also noted that women's representation reached around 40 percent of the total workforce, with a number of leadership positions filled by women.

In addition, the company also opened employment opportunities for people with disabilities through an inclusive employee program. One of the participants in the program, Yanto, said that equal employment opportunities gave him room to grow and be independent.

"I was given the trust to carry out work like other employees. With the training and support available, I can continue to grow," he said.

Apart from economic and employment aspects, the company also carries out various social programs in various regions. Throughout the study period, these activities include distributing assistance to orphanages, schools, and various community social activities.

Other programs are also run through social foundations that provide a shelter for families of children who are undergoing medical treatment at the hospital.

Company management said these various initiatives are part of efforts to build long-term relationships with the community.

"We believe that success in this industry is also measured by the benefits that can be felt by the surrounding community," said a management representative.