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View all search resultsIndonesian F&B exporters must adapt to make it big in Australia
According to Statistics Indonesia (BPS), the archipelago’s food and beverage exports to Australia jumped to US$333.3 million last year, up 44.6 percent from around $230 million in the previous two years.
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Antonius Auwyang, managing director at Sony Trading Pty Ltd, stands on Nov. 17 in front of his warehouse in Sydney, Australia. (JP/Aditya Hadi)
M
achinery, steel, oil and gas and fertilizer still dominate Indonesian exports to Australia, but data shows a notable jump in shipments of food and beverages, and Australian importers see much untapped potential, but only if Indonesian producers improve compliance with local regulations and adjust packaging and ingredients to Australian tastes.
According to Statistics Indonesia (BPS), food and beverage exports to Australia, logged under Harmonized System (HS) codes 16 to 22, jumped to US$333.3 million last year, up 44.6 percent from around $230 million in each of the previous two years.
The trend has continued into this year, with another 12.8 percent year-on-year (yoy) rise through September, driven by cocoa and cocoa-based goods.
Antonius Auwyang, an Indonesian-born Australian who founded import firm Sony Trading Pty Ltd in 2004, said Indonesian producers must meet several key conditions to succeed in the Australian market.
Those include getting their products onto the shelves of major retailers across cities, keeping prices competitive and crucially, complying with Australia’s “really strict” rules on labeling and ingredients.
He noted that many exporters had assumed regulations would be relaxed after the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) took effect in 2020, but Canberra, he stressed, had never been willing to compromise on safety and compliance.
“Honestly, there are many products from Indonesian micro, small and medium enterprises (MSMEs) that I just can’t support, because they don’t meet Australian standards,” he said at his office in Sydney on Monday.
