• UD Padi leads the organic segment in Indonesia with a market share of 19.0% in 2021, followed by Kampung Kearifan Indonesia PT with a share of 16.4%.  
• With a low market size ranking, accompanied by a single digit forecast growth and negligible per capita expenditure, the market of organic products in Indonesia is still to emerge, as only a handful of categories dominate the majority of sales for packaged food and beverages.

• Organic products in Indonesia represent 0.03% of global demand, with a per capita expenditure of US$0.06 in 2021. 
• With a growing number of consumers interested in organic products and an emerging economy in Indonesia, the potential for organic products seems positive in the long term, leading to a forecast value CAGR of 6.1% for the period 2021-2026.

• Organic packaged food and beverages in Indonesia continue to grow; the category has registered a value growth of 7.9% in 2021 to reach a value of US$16.2 million. 
• Organic packaged food sales consist almost exclusively of organic rice, and the category recorded value growth of 8.7% in 2021 to reach US$14.7 million.
• Organic coffee is currently the only major organic beverage category in Indonesia; it is expected to show flat growth over the period 2021-25.

• "High in vitamin C" remained a strong imperative of product labels in 2021 to denote the health benefits of the products amidst the Covid-19 pandemic. Vitamin C is regarded as an essential ingredient for strengthening the immune system and reducing the risk of a severe case of Covid-19. Manufacturers explicitly highlighted vitamin C content in new products and amended the labels of old products to gain the interest and attention of consumers. 
• Covid-19 led to the emergence of two health and wellness benefits that consumer sought – improved overall health and a strong immune system. Fortified/functional beverages and naturally healthy beverages were the categories in which products were most likely to be promoted, depicting a high level of vitamin C – manufacturers have launched numerous products associating vitamin C fortification with health and immunity.

• UD Padi remains the organic packaged food category leader, with 20.9% of the market in 2021. The organic beverages category is dominated by Kampung Kearifan Indonesia PT, with 21.7% market share in 2021. 
• Kampung Kearifan Indonesia PT was an undisputed market leader in organic category till 2018, thanks to its famous brand Javara – a pioneer brand in organic rice. The company lost its number one position to UD Padi in 2019.
• Kampung Kearifan PT remains a leader in organic coffee with its brands – Javara Aceh Gayo and Javara Flores Bajawa. The company leverages the Javara umbrella brand's strong position and the high number of specialist coffee stores under the name Javara Cultere Cafe. Javara Cultere Cafe is Indonesia's first major player in organic foodservices, all of its products are cultivated and produced in Indonesia.
• As the country is recovering from the impact of the pandemic, the pursuit for healthier and cleaner products among the local population will encourage the manufacturers to widen their portfolio of health and wellness products and increase reach by adopting digital and e-commerce channels, indicating that the presence of organic packaged food and beverages is expected to further expand beyond organic rice and organic coffee.

• There is a rising consumer awareness regarding the health benefits of better for you beverages. However, the category is not expected to register dynamic growth during the forecast period. It is also anticipated that leading manufacturers might not engage with the significant development of new products during the forecast period due to the muted positive performance of the category.
• E-commerce is expected to grow as an important distribution channel for better for you products during the forecast period. Although e-commerce registered only a marginal value share in the category in 2021, it presents a solid opportunity for leading manufacturers in the category to expand their presence across e-commerce channels. Covid-19 has made consumers realise the benefits of e-commerce, further pushing its more substantial growth. Also, E-commerce presents a strong opportunity and improved visibility to the products of less prominent brands, which is critical to sustain their growth.
• Consumers in Indonesia are concerned about high sugar intake and its impact on health, especially in the case of children. The rising concerns raged a debate in Indonesian society about the danger of excessive sugar consumption - an excise tax may be introduced on products that contain sugar during the forecast period. However, the topic has been under discussion for many years, and it has not yielded any results or a roadmap so far. Depending on how any proposed sugar tax would be structured, leading players are expected to reformulate products with reduced sugar content. Therefore, it is anticipated that better for you reduced-sugar beverages will register a strong sales growth.

• The health and wellness category in Indonesia is expected to record positive sales growth. However, it is essential to consider that the influence of Covid-19 will remain in action for some years, and it is expected to present challenges and opportunities to players across all categories.
• Fortified/functional will show strong growth in the health and wellness category during the forecast period. The category is expected to continue on its growth trajectory owing to increased demand for products fortified with vitamin C, as observed during the peak of Covid-19 in 2020. Naturally healthy is another category expected to show strong growth during the forecast period. The category is likely to benefit from increased distribution reach and the proliferation of new premium products in juice.

Economy: 

• Real GDP growth in Indonesia rebounded to 3.7% in 2021 and is forecast to accelerate to 5.0% in 2022, around the range it will remain through 2030.
• The real value of private consumption grew by 3.2% in 2021, and it is expected to improve to 5.2% in 2022.
• Inflation registered 1.6% in 2021 and is forecast to rise to 3.2% in 2022, before stabilising around 3.5% 2023-2030.

Population demographics: 

• The population of Indonesia reached 276.4 million in 2021, increasing by more than 50 million from 2005. 
• Indonesia enjoys the benefits of a primarily youthful population, as the median age in 2021 was 30 years, increasing by 4.4 years since 2005. 
• The proportion of the population over 65 years totalled 17.9 million in 2021, representing 6.5% of the total population. This figure is expected to rise to 7.6% by 2025.

Income & expenditure: 

• The savings ratio reached 6.5% of disposable income in 2021, and it is expected to remain the same through 2026, before it slightly increases to 6.6% in 2027.
• Consumer expenditure per capita amounted to US$2,344.7 in 2021 and is predicted to increase by 2.1% in 2022 to reach U$2,441.8. Overall, consumption is expected to witness a cumulative increase of 45.7% for the period 2021-2030, averaging an annual rate of 4.3%. 
• Disposable income per capita reached US$2,481.2 in 2021, and it is expected to grow by 4.1% in 2022 to reach about US$2,585.

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To Indonesia

Note : Total organics is the sum of all exports in a particular year 

Authorized Government Agency(s):

National Accreditation Committee (KAN) provides accreditation service and advice to the National Standardization Agency of Indonesia (BSN), which handles standards development at the direction of the Ministry of Agriculture.

Agency(s) Contact Information:

Republic of Indonesia - Ministry of Agriculture
Jl. Harsono RM No.3
Ragunan PS. Minggu
Jakarta 12550
Telephone: +62 (0) 812-9293-7867
Fax: +62 (0)21 780 4237
Email: humas-ip@pertanian.go.id
Website

National Standardization Agency of Indonesia (BSN):
Telephone: +62 (0)21-3927422
Email: bsn@bsn.go.id 

Name(s) of Regulation and/or Standard:

Indonesian National Standards were updated in 2016: Standar Nasional Indonesia (SNI  6729:2013) Sistem pertanian organik (.pdf in Indonesian)

February 2017: Indonesia repealed National Agency for Drug and Food Control (BPOM) Regulation No. HK 00.06.52.0100 of 2008 on the Control of Organic Processed Food, and added new regulations for organic processed food (Regulation of the Head of NA-DFC No.1 of 2017 on Organic Food); the update includes a chart of materials allowed for use in processed organic foods.

Organic inputs must be registered with the Indonesian Ministry of Agriculture. They must meet the Minimum Technical Requirements for Organic Fertilizers, Biological Fertilizers and Soil Improvements (Kepmentan No.261/2019). Producers who have complied can use the ORGANIK Indonesia logo on the packaging of their organic inputs.

Date of Implementation: 2002

Regulation and/or Standard Scope:

The standard establishes a system of organic food production for the following products: fresh plants and plant products, livestock and livestock product production; processed agricultural and livestock products for human consumption.

A draft standard on organic seafood has been prepared by the Ministry of Fisheries and Maritime.

Imported organic foods and fresh organic foods for processing must be accompanied by a certificate from an institution in the country of origin that is accredited by an authority recognized by Center for Standardization and Accreditation in Ministry of Agriculture of Republic of Indonesia.

Certification:

Type of assurance system: Third party Certification Bodies and second party guarantee systems (NGO, trader)

National Accreditation Committee (KAN) provides accreditation service and advice to the National Standardization Agency of Indonesia (BSN), which handles standards development at the direction of the Ministry of Agriculture. National Accreditation Committee (KAN) recently accredited domestic certifiers; check with your international certifier to see if they are accredited.

The majority of organic farmers in Indonesia are small scale farmers for whom it is difficult to obtain third party certification. For this reason, the Indonesian Organic Alliance (IOA) decided, following a participatory workshop in November 2008, to set-up alternative certification system called PAMOR Indonesia (Penjaminan Mutu Organis Indonesia). The PAMOR system functions according to the Participatory Guarantee System (PGS) model. PAMOR certification is allocated for organic products from small scale producers, marketed at the local, regional, and national level in Indonesia. The product range includes fresh and processed products from food plants and horticulture, as well as livestock and fisheries.

Accreditation Method:

Government

Accreditation:

National Accreditation Committee (KAN) provides accreditation service and advice to the National Standardization Agency of Indonesia (BSN), which handles standards development at the direction of the Ministry of Agriculture.

Reference Standards:

SNI Pangan Organik was drafted to follow the Codex Guideline for production, processing, labeling and marketing of organically produced food and IFOAM basic standards 2005.

Additional Information:

U.S. International Trade Administration

USDA's GAIN Report Indonesia Retail Foods Retail Foods Update (2023)
USDA's GAIN Report Retail Chain Overview and Product Survey (2021)
USDA's GAIN Report Indonesia Food Service - Hotel Restaurant Institutional (2023)
USDA's GAIN Report Indonesia Food Processing Ingredients (2022) 
USDA's GAIN Report Guide to Re-selling Containerized Cargo After Arrival (2020)
USDA's GAIN Report Indonesia Food and Agricultural Import Regulations and Standards - Narrative (2020)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2021)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2021)
USDA's GAIN Report Indonesia Halal Overview (2021)
USDA's GAIN Report Clarifications on Decree 748 on Type of Product Required to be Halal Certified (2022)
USDA's GAIN Report Indonesia Exporter Guide (2024)
USDA's GAIN Report Retail Product Registration Guide for Imported Food and Beverages (2018)
USDA's GAIN Report Updated Requirements for Indonesia's Electronic Prior Notice System (2022)