The Ministry of Industry
set target growth of 8% for F & B industry this year, uplifted by public
consumption related to General Election 2014. Data of the Ministry had it that production
capacity of F & B industry in 2012 was posted at 63 million tons. Today
there were 1,952 companies being active in that sector. Total production of
2012 was posted at Rp 712 trillion, up by 8% compared to previous year at Rp 60
trillion.
The Secretary General of the Association of Indonesian F
& B Producers [GAPMI] Franky Subarani stated in Jakarta on Monday [24/2]
that he agreed on Government’s target. Franky was expecting that money
circulation during General Election might come to Rp44 trillion and could be
benefited by F&B traders. By year end, Franky was optimistic return of
F&B industry could break through Rp789 trillion or increasing by 6% against
returns of 2013 at Rp745 trillion.
GAPPMI estimated that F&B consumption would be much
absorbed by events run by the political parties. The activities were expected to
help to increase sales of F&B products. However, Franky said that many
challenges had to be faced by the F&B industry this year. He showed as an
example increase of Basic Electricity Tariff of I.3 category which came to
38.9%. Price of gas would increase too while Dollar was still strong. “This is
a challenge we all have to face. How to keep all obstacles from lowering
performance of the F & B industry” he said.
Therefore Franky said, players of the F & B industry
might increase their product price by 10% - 15% due to increased production
cost. Franky said that the challenge of election year was increase of
production cost, which was on account of several factors like increased BI’s
benchmatk rate which had come to 7.5%. Increase of production cost might jack
up selling price of the F & B products would think twice before reducing
the content of product.
The same was disclosed by Tryono Priyosoesilo, Chairman
of the Association of Light Drink Producers [ASRIM]. He believed that the 2014
political year would jack up demand of fast food products by up 9% against
2013. Producer of light drink products estimated consumption of fast food
products in Indonesia might come to 24 billion litres due to demand for fast
food products.
Drinks for fast food restaurant included among others
packaged tea, carbonated or soda drinks, packaged drinking water in the form of
juice, coffee, milk and isotonics. Triyono estimated the projected profit from
F & B industry was too measly. Electricity tariff increase and depreciation
of Rupiah had their impact on the industry. He was expecting that the
Government realized that the condition of domestic was unfavorable due to many
factors. The recommended step to be taken, Triyono said was to suspend increase
of electricity tariff which would be in effect gradually per May 2014. (SS)
Business News - February 28, 2014
No comments:
Post a Comment