Indonesian food industry: Prospects in turmoil

The fluctuation of international commodities prices, including food and fuel, has triggered big worries in the domestic food industry over whether the industry will able to survive and pass the turbulence.

As the commodities prices in the international market fluctuate, most producing countries are holding their crops to protect their domestic supply. This condition creates raw material shortages in the food industry and it raises the price of imported raw materials.

The challenges Indonesian manufacturers also have to face are high electricity and fuel prices, increasing labor costs and lack of infrastructure.