Economist: Indonesia Has Potential to Supply Food Raw Materials to South Korea, Here's the Challenge

Bisnis | Ekonomi - Posted on 24 May 2025 Reading time 5 minutes

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Economists have stated that Indonesia now holds new opportunities in producing Korean-style food, as well as becoming a supplier or exporter of processed food ingredients to South Korea. Moreover, halal-certified products from South Korea also present unique prospects for Indonesia.

 

Andry Satrio Nugroho, Head of the Center for Industry, Trade, and Investment at Indef, emphasized that the government must encourage Indonesia’s processed foods not to be exported as standalone products. Instead, Indonesia should aim to be part of the supply chain of various Korean food products. He explained that South Korean consumers generally prefer to buy local or traditional Korean foods.

 

“We can supply raw materials that are then used to make processed Korean food. So the goal is to integrate into that system,” Andry told Bisnis, as quoted on Thursday (May 22, 2025).

 

However, Andry acknowledged that some Indonesian products have already penetrated the South Korean market—such as instant coffee, instant noodles, and seafood-based items. He believes that Indonesia can further expand by aligning with South Korean consumer preferences.

 

“I think Korean food is a space we can explore. We can manufacture it in Indonesia and export it to South Korea. It doesn’t always have to match Indonesian tastes—we need to cater to Korean preferences as well,” he added.

 

On the other hand, Andry highlighted the challenges involved, especially regarding food safety regulations. He pointed out that exporters must comply with requirements set by the Korea Food & Drug Administration (KFDA) and the Hazard Analysis and Critical Control Points (HACCP).

 

He also sees opportunities in halal-certified Korean products. “In my opinion, this is a significant opportunity—halal-certified processed foods and halal raw materials can be pushed into the Korean market,” he said.

 

Indonesia’s Strategy to Enter the South Korean Market

According to an official Instagram post by the Ministry of Trade (Kemendag) on Thursday (May 22, 2025), Indonesia’s processed food exports have grown by 6.8% over the past five years, reaching a total of US$5.22 billion in 2023.

 

The Ministry revealed six key strategies that Indonesian food and beverage businesses can adopt to enter the South Korean market. These include enhancing product quality and hygiene throughout the raw material selection, production, and packaging processes.

 

“Exporters must also ensure their product packaging is creative and appealing. Environmentally friendly materials are particularly favored by South Korean consumers,” the Ministry stated.

 

Another strategy involves offering natural and organic products, considering the South Korean public tends to lead healthy lifestyles and prefers low-salt, low-sugar, and organic processed foods.

 

Additionally, exporters are encouraged to participate in exhibitions, have websites available in both English and Korean, and collaborate with Indonesian trade representatives in South Korea.

 

However, Kemendag cautions that exporters must also comply with several South Korean regulations before exporting, including:

  1. The Food Sanitation Act, ensuring comprehensive product hygiene.

  2. The Plant Quarantine Act, to prevent pest and disease transmission.

  3. The Positive List System, banning imports containing agrochemical residues.

  4. Coal Reduction Policy, requiring exporters to minimize coal-based energy use.

  5. The Special Act on Imported Food Safety Management, mandating health certificates for animal-based products.

Source: bisnis.com

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