• Healthy Choice Indonesia leads the organic segment in Indonesia with a value share of 91.1% in 2023, followed by Deoleo SA with a value share of 4.0% and Morinaga Milk Industry Co Ltd with a share of 1.0%. 
• Indonesia ranks 10th globally in terms of market size, with a value of US$1,154.1 mn in 2023, only trailing China and Japan for being the largest organic consumer market in the Asia Pacific region.

• Organic products in Indonesia represent 1.9% of global demand and 8.6% of the market in the Asia Pacific region, recording a per capita expenditure of US$4.0 in 2023. 
• The Indonesian market for organic products is projected to increase with a value CAGR of 7.8% for the forecast period 2023-2028 in 2023 constant prices with fixed USD exchange rates, reaching a value of US$1,677.8 mn by 2028.

• The Organic Packaged Food and Beverages category in Indonesia registered a value increase of 6.0% in 2023 in current prices to record a market size of US$1,154.1 million. 
• During the historic period of 2019-2023, the Organic Packaged Food category registered a CAGR of 8.9% in current prices. The category is expected to keep growing for the forecast period from 2023 to 2028, as growth is expected to reach a projected CAGR of 7.7% in constant prices.
• Organic Beverages also experienced an increase in value, growing historically at a 5.5% current CAGR. A continued increase is expected at a faster pace of 16.3% constant CAGR over the forecast period.
• Organic Packaged Food was primarily led by Organic Cooking Ingredients and Meals with a 13.1% current CAGR during the historic period. The category is expected to grow at a constant CAGR of 10.4% over the forecast period.
• Within Organic Beverages, Organic Soft Drinks grew US$2.7 million during the historic period. For the forecast period, both Organic Soft Drinks and Organic Hot Drinks are expected to increase at projected constant CAGRs of 14.9% and 19.8%, respectively.

• Rising health awareness is increasingly driving Indonesians to make dietary changes to improve their nutritional intake, lose weight and reduce the risk of certain diseases. According to Euromonitor International’s most recent Voice of the Consumer survey from January-February 2024, 73% of consumers in Indonesia look for products that contain healthy ingredients in their food and beverages, with 57% also claiming that they closely read the nutritional labels of food and beverages.
• Rising health-consciousness among Indonesians should continue to broaden the appeal of organic food and drinks. Increasing concerns about the hazards to human health and the environment posed by pesticides and chemical additives widely used in agriculture will likely encourage more people to choose organic options. Innovation, marketing activities and the growing presence of organic alternatives on the shelves of supermarkets, hypermarkets and small local grocers should also help to stimulate greater consumer interest in this claim.

• Healthy Choice Indonesia largely leads the Organic Packaged Food category with virtually no relevant competition. The company’s rapid rise is mainly due to the diversification of organic brand within its portfolio, including organic condiments, oats, snacks, soups and spices.
• Hipp GmbH & Co Vertrieb KG continued to lead Organic Beverages in 2023 with a 35.7% market share. The company has a variety of organic products made for babies, children, and pregnant women, including milk formula and weaning food.

• In addition to rising health awareness, people in Indonesia are becoming more image conscious. Most visible among younger demographics and fueled in part by the growing use of social media, this trend will continue to boost demand for health and wellness products with functional properties related to beauty and personal appearance over the forecast period. Most notably, consumers are likely to show greater interest in products that are naturally rich in or fortified with collagen, vitamins, minerals and other nutrients that can rejuvenate and help to maintain healthy-looking skin and hair.
• Across the forecast period, sales of Organic Cooking Ingredients and Meals are set to grow, with retail sales projected to rise at a 10.4% constant value CAGR to reach US$84.0 million in 2028. Across the forecast period, Organic Edible Oils will be the leading product in this market, reaching sales of US$74.6 million, supported by a forecast constant CAGR of 9.8%.

• Healthier alternatives for key staple foods in Indonesia are increasing in popularity, mainly present with rice and noodles made from konyaku, a gelatinous paste derived from the root vegetable konjac, which is native to Southeast Asia. Offered by brands such as Fukumi and Nishimoto, konyaku-based products are higher in fiber and lower in calories and carbohydrates than standard rice and noodles made from grains. These properties make them particularly attractive to figure-conscious consumers and those seeking to improve digestive function. Such products are also becoming more affordable and widely available in recent years as new entries have stimulated greater price competition and established players have stepped up investment in the expansion of their distribution networks.
• On July 2024, Indonesia enacted Government Regulation No. 28 of 2024 (GR 28) under the Health Omnibus Law, targeting high content processed foods. It imposes upper limits on sugar, salt, and fat (GGL) in pre-packaged and ready-to-eat products to curb non-communicable diseases such as diabetes and hypertension. The regulation mandates GGL disclosure on labels, introduces front-of-pack indicators, and restricts marketing of high-GGL foods by setting advertising, production, import, and distribution rules, with enforcement and specific thresholds pending further Ministry of Health regulations.

Economy: 

• Indonesia's economy is projected to grow in 2025, with real GDP growth expected to reach 4.8%, in line with a 5.0% growth in 2024. This growth is mainly due to robust macroeconomic policies, increase in investment and exports, and strict adherence to fiscal policies.
• Real GDP growth is anticipated to remain constant, reaching 4.8% in 2026 and averaging around 4.9% annually through 2028.
• Inflation closed 2024 at 2.2% and is expected to decelerate slightly to 1.9% in 2025.

Population demographics: 

• Indonesia's population reached 283.5 million in 2024 and is projected to increase by 0.8% to 285.7 million in 2025. Indonesia is slightly lower than the average for the Asia Pacific region by median age, with the percentage of the population aged 0 to 14 years old reaching 24.6% in 2024. 
• The median age in Indonesia was recorded at 31.1 years in 2024, an increase of 1.0 years from 2020.

Income & expenditure: 

• The savings ratio in Indonesia reached 9.8% of disposable income in 2024, with many Indonesians choosing to prioritize essential spending and experiences even if that means dipping into their savings or turning to alternative financing solutions.
• Consumer expenditure per capita grew by 7.1% in 2024 in current USD terms. In constant USD, it is projected to grow at an average annual rate of 3.3% through 2028. This growth is likely driven by increased spending on household goods and services, although food and non-alcoholic drinks is projected to remain the largest consumer spending category. 
• Disposable income per capita was US$2,951 in 2024. It is expected to grow at an average annual rate of 3.6% through 2028, in line with the Asia Pacific average.

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.

² Economic and Demographic Data has been updated to reflect final 2024 estimates, therefore using 2024 as the base year for exchange rates and prices. 

³ Historic current prices and forecast constant 2024 prices.

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)