Indonesia Cold Chain Industry
In 2023, Indonesia’s cold chain industry experienced notable growth, despite a more gradual global economic recovery . The industry faced challenging disruptions from the 2020-2021 pandemic, which escalated freight costs and strained food supplies due to extreme weather events.
The pandemic disruptions have led the government and logistics stakeholders to prioritize the enhancement of supply chain infrastructure and food storage capabilities over investments in road infrastructure tailored for passenger vehicles. This strategic shift aims to fortify the resilience and efficiency of the cold chain sector, crucial for maintaining food quality and security amidst ongoing economic uncertainties and environmental challenges.
The food supply chain plays a pivotal role in calculating logistics costs affecting Indonesia’s Gross Domestic Income. With non-refrigerated household and office products dominating market competition, property developers have turned their attention to the cold chain sector, recognizing its potential to bolster national food security initiatives. The demand for robust infrastructure and connectivity in this sector has surged, driven by persistent challenges in efficiently transporting food from producers to consumers.
This has led to opportunities for companies to collaborate on the development of cold chain facilities, aiming to optimize the supply chain and mitigate risks associated with large-scale food imports. As the industry evolves, strategic partnerships and collaboration in cold storage and distribution networks are poised to enhance the resilience and efficiency of food supply chains. Attention to policy engagement is also important, with many in the industry advocating for clearer policies that balance environmental concerns with economic viability.
The growth of cold storage facilities is unequal across Indonesia, led by greater Jakarta due to urbanization and lifestyle changes prompting high demand for quality fresh food. Cold chain in the Jakarta region also benefits from ample energy sources. In contrast, areas outside Java, Bali, and Sumatra face considerable challenges with energy availability, despite various solar panel options. The adoption of environmentally friendly and energy-efficient refrigerants remains low, partly due to limited awareness among stakeholders and delayed regulatory guidance. New demands such as increased vaccine distribution create additional growth considerations.
More background and trends can be found through the Indonesia Cold Chain Association (ARPI) secretariat website: www.arpionline.org
For more information for U.S. firms and help to pursue these commercial opportunities, please contact the U.S. Commercial Service in Indonesia via Commercial Specialist Helda Sitorus at helda.sitorus@trade.gov.