Emerging Indonesian Middle Class Creating Opportunities for Australian Food Producers

The Indonesian Middle Class is increasingly demanding premium food choices, this can be a boon for Australian food producers.

In November 2011 my business partners and I travelled to Indonesia to test the market demand for South Australian premium food and agricultural produce. I touched upon this trip in an earlier blog last week, where I talked of the food security needs currently facing Indonesia and its policy makers. As I described last week the demand we received from Indonesian importers, distributors and producers was exceptional. The message was received loud and clear that Indonesia was seeking premium Australian and South Australian food produce.

Our success and the market demand was illustrated by the sheer volume of meetings we had while in Jakarta and Bali. In five days in Jakarta we had 30 meetings, and a further 10 meetings were held in Bali, with importers, distributors and food producers. The main concerned raised in these meetings was not how much would it cost, but more how much can be supplied! The Indonesian premium food market is expanding rapidly, with new supermarkets, mini markets and specialty food grocers catering to the emergent wants of the Indonesian middle class. These food outlets are modelled upon the same format as many high end and premium grocers from the west. The brands and products on the shelves are a good match for similar lines found in supermarkets across Australia, UK and the US. The Indonesian middle class is arriving and they want our food!

The success of this trip in awakening the awareness of Indonesian importers and distributors to the vast food offering in South Australia was demonstrated soon after our return to Australia in late November. An inbound trade delegation from Indonesia was hosted by my AsiaAustralis business partner Todd Shone in Pt Lincoln and the Eyre Peninsula where our Indonesian guests were able to view firsthand the market potential to supply across multiple product lines. These two trade trips, the Outbound to Indonesia and the Inbound to South Australia ultimately has resulted in new export opportunities for a couple of South Australian food producers, while additionally generating new interest for business partnerships across complimentary agricultural industries.

The main message to take from these experiences is that Indonesia with a growing population growing beyond 250 million, and with a middle class of 80-130 million, the Indonesian market provides a substantial market opportunity for Australian food producers. It is time government and business leaders acknowledged this opportunity and put in place strategies to access this market opportunity.

If your company is looking to tap into the increasing demand for food in the Indonesian market, please feel free to send me an email (nathan@asiaaustralis.com), and we can have a chat about how AsiaAustralis can assist your company meet the needs of the Indonesian market. Alternatively come along to the Australia Indonesia Business Council Business Forum – “Identifying opportunities for primary industries in the Indonesian market”  in Adelaide on Friday 30th March, to learn more about the opportunities for food exporters in Indonesia.

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About Nathan H. Gray
Nathan H. Gray is Managing Partner of AsiaAustralis. AsiaAustralis is a stategic consulting service partnership established by experienced international management consultants to assist private and public organisations achieve their strategic objectives in trade, investment and government relations throughout the Australasian region with a particular focus on SE Asia. Based in Adelaide, South Australia, AsiaAustralis has a network of associates throughout Australia and Asia that can be called upon to assist and facilitate major projects, business opportunities and government to government trade and investment facilitation. To Contact AsiaAustralis check out the website: www.asiaaustralis.com or send Nathan an email: nathan@asiaaustralis.com

One Response to Emerging Indonesian Middle Class Creating Opportunities for Australian Food Producers

  1. Pingback: Tapping into Western Beverage Success Stories in Indonesia « Nathan H. Gray

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