INDUSTRY.co.id - Jakarta, The national food and beverage industry, especially the packaged beverage sector, continues to show resilience amid various global economic challenges. As one of the main contributors to the manufacturing sector and the support of domestic consumption, the industry is considered to still have growth prospects despite facing pressure from the weakening rupiah exchange rate, rising production costs, to the lack of optimal recovery of people's purchasing power.
The Data Center of Reform on Economics (CORE) Indonesia noted, based on Badan Pusat Statistik (BPS) data, Indonesia's economy in the first quarter of 2026 grew 5.61 percent year-on-year. The processing industry remains the largest contributor to the national Produk Domestik Bruto (PDB) with a contribution of 19.07 percent. From this figure, the food and beverage sub-sector contributed about 7.31 percent to the national PDB, strengthening its position as the driving force of national manufacturing.
Although macro shows a relatively solid performance, conditions at the industrial level still face a number of challenges. CORE Indonesia Senior Researcher, Muhammad Ishak Razak, assesses that the current market dynamics require serious attention, especially regarding the consumption ability of the community.
"The momentum of Ramadan, Eid, community mobility, and domestic consumption are still the main drivers of soft drink industry demand. However, the growth is still overshadowed by a number of structural challenges, including; the weakening of the rupiah which had penetrated Rp17,900 per dollar AS, rising production costs, inflationary pressures, and the weak purchasing power of the community which is a real challenge for industry players," he said.
These pressures are beginning to be reflected in industry performance throughout 2025. Industry data shows the beverage manufacturing sector recorded a 0.5 percent decrease in total growth volume. The most significant decrease occurred in the category ofnon-water beverages (excluding water) which contracted up to 11.6 percent.
On the other hand, the category of drinking water in (AMDK) bottles is still able to grow 4.4 percent. Overall, however, total industrial value growth contracted by 4.3 percent. This condition indicates increasing pressure on producer margins as well as changes in people's increasingly selective consumption patterns in shopping.
Ketua Umum Asosiasi Perusahaan Minuman Dalam Kemasan (ASRIM), Triyono Prijosoesilo, assessed that the industry has not fully returned to the ideal growth rate as before the pandemic.
“ASRIM considered that although the food and beverage industry still recorded positive growth throughout 2025 of 6.38 percent, the growth was still below the pre-pandemic level which could previously reach a range of 7-9 percent. A number of economists also consider that economic growth in the first quarter of 2026 is still largely supported by government spending and seasonal factors of Ramadan-Eid, while the recovery of people's purchasing power has not been fully strong," he said.
In addition to market demand challenges, businesses also face increased production cost pressures due to high dependence on imports of raw materials and packaging. Fluctuations in the rupiah exchange rate also increase the operational burden of the industry.
Inflation data as of April 2026 show that the food, beverage, and tobacco groups experienced inflation of 3.06 percent on an annual basis, higher than the national inflation rate recorded at 2.42 percent.
Responding to these conditions, the government through the Ministry of Industry affirms its commitment to maintaining a conducive manufacturing business climate. These efforts are carried out through strengthening industrial structures, accelerating downstreaming, and increasing the competitiveness of the food and beverage sector.
The representative of the Ministry of Industry, Merrijantij Punguan Pintaria, said "The processing industry sector contributed about 19% to the national PDB in Q1-2026, with the food-beverage industry as the main subsector supporting national manufacturing growth. We understand that global economic pressures also pose challenges for the food and beverage industry to continue to grow. For this reason, the government continues to be committed to encouraging the strengthening of industrial structures, downstream development, and improving the daytime power of the mamin sector. We will also continue to strengthen synergies with business actors in maintaining industrial sustainability and job creation amid the dynamics of the global economy."
ASRIM positively welcomes the government's commitment and hopes that the implementation of the policy can be carried out adaptively without increasing the burden on the business world. According to the association, regulatory certainty and a healthy business climate are important factors to maintain investment and sustainable employment.
In closing, Triyono Prijosoesilo emphasized the importance of continuous collaboration between the government and industry players to strengthen the resilience of the national packaged beverage sector.
“The packaged beverage industry sees growth opportunities remain open, but it needs continuous strengthening to be more resilient going forward. We encourage adaptive and consistent policies, including strengthening domestic raw materials, regulatory certainty, and a balance between people's purchasing power and business sustainability. ASRIM puts forward a constructive dialogue with the government and all stakeholders to evaluate various industrial policies, including customs and import duties, in order to maintain industrial stability, investment sustainability, and national labor protection," he concluded.
