Food Industry In Indonesia Research Articles

Indonesian Halal Food Industry: Development, Opportunities and Challenges on Halal Supply Chains

This paper aims to determine the development, opportunities and challenges of the halal supply chain in the Indonesian halal food industry. The method used is descriptive qualitative method. A qualitative approach is a procedure that produces descriptive data in the form of written or spoken words from people and the observed behavior of giving a comprehensive picture. The type of research is descriptive with the aim that researchers can reveal facts, phenomena, and conditions present. Research results show in the era of the halal food chain and halal science as it is today, competition for halal food needs is higher than overseas, therefore halal food companies must maintain production, with the application and other technology companies must respond to consumers faster. The market potential for the halal food industry in Indonesia is developing rapidly. Over the past few years, Indonesia is ranked first as Halal food consumers in the world. Nevertheless, the market potential is very the amount has not been able to be used optimally by the government to improve Indonesia's economy. Maintaining the quality of halal food products is one way to compete with other countries in the halal food industry.

Analysis for Development of Mocaf-Based Functional Food Industry in Indonesia

Indonesia is a country having abundant natural resources, including nutritious plants as a source of food and medicine. Along with the increasing public awareness of the importance of healthy living, there is a great shift in the demand of food. At present, people do not only want foods that have good nutritional composition as well as attractive appearance and taste, but also the ones that have certain physiological functions for the body. The foods that have such functions are known as functional foods. One ingredient that has the potential to be developed into functional food is mocaf flour. It is made from cassava which is made from the fermentation principle by modifying the cassava cells. This study aims to reveal the conditions for the development of the functional food industry made from mocaf flour in Indonesia using the value chain approach. This study was a qualitative research by using multiple case studies along the value chain. The data were collected from review of secondary data, in-depth interviews, and observations in each case study. The case study locus was the center of the mocaf-based food industry in West Java. The results showed that (i) the mocaf-based functional food industry in Indonesia was not developed; (ii) the development of mocaf-based industries was constrained by the high cost of cassava raw materials; (iii) the productivity of cassava plants was still low; (iv) the role of R & D institutions was very much needed; and (v) government intervention is needed.JEL Classification: L88, O00, Q18

Determinants of Micro and Small Enterprise Food Industry Market Expansion in Indonesia

One of the indicators that might upgrade micro and small enterprise is the ability to expand their market target outside their location or district. The objective of this article was to analyze the determinants of market expansion for small and medium enterprise especially in the food industry in Indonesia. Market expansion is defined as selling products or services outside the district where the enterprise is located. Secondary data were utilized in the research by using the Micro and Small Enterprise Survey conducted by Statistics Indonesia in 2014 with the data of 21,380 firms. Two analysis were conducted, firstly using the logit analysis in order to differentiate between enterprises selling their products inside and outside the district. The second analysis used Tobit analysis of which the dependent variable is the share of product sold outside the district. Independent variables used in both equations are similar. The results indicated that higher education level, number of labor, value of production, number of enterprise with external finance, number of enterprise located in Java and male-owned firms resulted in higher probability of selling their product outside the district. Moreover, the same variables will also increase the share of product sold outside the district. From the two equations, it can be concluded that the government policy must be addressed in two aspects in order to upgrade the small and medium enterprises, the first is increasing the scale of the enterprises and secondly, fostering financial inclusion for these enterprises.Keywords: micro and small enterprise, logit analysis, tobit analysis, food industry, market expansion

Drivers of Industry Convergence: The Case of Functional Food Industry in Indonesia

<p>Food industry has been considered as industry with low-intensity research and low R&D-to-sale ratio. However, changes in the environments of food industry; changes in society’s lifestyles; the rise of world’s food consumption; a shrinking food production base; and changing perspective of society toward the consequences of the food system’s sustainability have forced food industry to innovate. Functional food is the form of innovation in food industry, where the food processing involves new scientific and technical approach. As the 4th highest-population country with rising level of life expectancy and increasing number of high-middle-income people, there is a question whether Indonesia can be a big market and player in functional food industry. This paper first presents the overview of functional food industry in Indonesia. It analyzes the prospect of Indonesian functional food industry from demand, supply, and regulation perspective. The result of this study is Indonesia should have a good prospect as both the market and the player in functional food industry. Currently, baby and toddler are Indonesia’s biggest market of functional food for baby formula milk and baby food. Another functional food market segment prospective to be penetrated is elderly who have bigger risk of disease, such as hypertension and arthritis. Player who enter this industry must have strong financial and research capacities. Research about functional compounds in local Indonesian food conducted in preliminary stage and they need to be proven on animal and human studies. Regulation about labelling and advertisement of processed food with special claim and processed food for special nutrition needs is already sufficient to ensure food safety. However, law enforcement is still weak.</p><p>Keywords: functional food, healthy food, research capacity, labelling, food safety.</p>

Consumer Satisfaction on Mocaf (Modified Cassava Flour) Based Food Products in Supporting Industrial Revolution 4.0: SEM Approach

The increase in the snack food industry in Indonesia is one of the effects of improving the current lifestyle. Along with the progress of the digitalization era, technology and marketing strategies that take advantage of the industrial revolution 4.0 demand for snacks is also felt to grow rapidly. Likewise with the growth of culinary tourism provides an opportunity for small industries in the food sector to innovate in developing their products to be attractive to tourists. Mocaf (modified cassava flour) is local flour produced from cassava through a fermentation process, in the long-term it can be used as a substitute for wheat flour. This study aims to determine the variables that affect consumer satisfaction with mocaf-based food products. Purposive sampling technique was applied as a method for determining the sample, with a sample size of 145 people. The analytical method used is structural equation model with the help of warp-PLS software using two exogenous variables namely product quality variable (X1) and price variable (X2) also satisfaction endogenous variable (Y). The results of the analysis show that product quality variables have no significant effect on customer satisfaction, while the price variable has a significant positive effect on customer satisfaction. This shows that in the consumption of mocaf-based processed products, consumers consider product prices more than product quality to influence satisfaction.

PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM PADA PERUSAHAAN INDUSTRI MAKANAN DAN MINUMAN DI BURSA EFEK INDONESIA

The present study aims to investigate the influence of financial performanceof the stock prices on food and beverage industries in the Indonesia StockExchange that are Current Ratio (CR), Debt to Equity Ratio (DER), TotalAssets Turnover (TATO), and Net Profit Margin (NPM).This study usedsecondary data that obtained from the financial statements of IndonesianCapital Market Directory (ICMD) based on the publication of the IndonesiaStock Exchange. The sample used in this study were enterprises food andbeverage industries listed in the Indonesia Stock Exchange in 2011 – 2015.The data were analyzed by using multiple linear regression analysis.Theresults of this study indicated that there was significant effect simultaneouslybetween financial performance [Current Ratio (CR), Debt to Equity Ratio(DER), Total Assets Turnover (TATO), and Net Profit Margin (NPM)] towardthe stock prices on food and beverage industries in Indonesia stockExchange in 2011 - 2015. While partially showed that of the fourindependent variables, which indicated the presence of significant influencewere Current Ratio (CR), Total Assets Turnover (TATO), and Net ProfitMargin (NPM) to the stock prices on food and beverage industries inIndonesia stock Exchange in 2011-2015.

Indonesian red chilli (Capsicum annuum L.) capsaicin and its correlation with their responses to pathogenic Fusarium oxysporum

Red chili is a commercial crop for the food industry in Indonesia. There are some categories of red chili based on their pungency. The hot chili usually has more capsaicin than the sweet chili. Some cultivars may have more resistance to pathogen infection than the others. This research aimed to analyze the disease resistance of red chili cultivars from Indonesia against pathogenic Fusariumoxysporum and the correlation with capsaicin contents. Disease resistance was examined by determination of the Disease Severity Index (DSI) 15 dpi (days post inoculation). The correlation was analyzed by the regression coefficient. The result showed that the most resistance cultivar against F. oxysporum was Branang, while Lembang-1displayed the contrary. There was not a correlation of capsaicin content with the chili resistance to F. oxysporum.

PENGARUH KEMAMPUAN INOVASI PRODUK TERHADAP KINERJA PEMASARAN : PERAN DIFERENSIASI PRODUK (Studi pada Industri Pangan Lokal Enbal di Kabupaten Maluku Tenggara)

Local food industry in Indonesia has become the belle of the uniquenessor distinctiveness of each region of the country's remote areas. Of course, byintroducing diverse cultures based on local wisdom, local food as one partregardless separated from the increase in the country's economy, especially in thevarious regions in Indonesia. The purpose of this study was to determine andanalyze the effect of product innovation capabilities on product differentiation andproduct differentiation influence on the performance of marketing. This type ofresearch is inferential with a quantitative approach. Sampling was done by usingNon-Probability or purposive sampling a total of 120 samples. Collecting datausing questionnaires as research instrument. Data analysis using descriptiveanalysis and test equipment used is Path Analysis.Hypothesis testing using the Ftest and t test. The results showed that (1) there is a significant and positive effectof product innovation capabilities on product differentiation; (2) there is a positiveand significant effect on the performance of product differentiation marketing.The values R2 is found to be 0.934, which means the amount of exogenousvariables on endogenous variables by 93.4%.

Competitiveness and Factors Affecting Indonesian Food Industry’s Export to Regional Comprehensive Economic Partnership

Regional Comprehensive Economic Partnership (RCEP) is regional cooperation between ASEAN, Australia, China, India, Japan, South Korea and New Zealand. The vast potential of the RCEP provides an opportunity for the improvement of the Indonesian economy. This study aims to analyze the comparative advantages and dynamics export of Indonesia’s food industry as well as the factors affecting exports. The methods used Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD), and panel data. The results indicate that food industry generally has strong competitiveness in the RCEP market except in Australia, Cambodia, Japan, Korea and Laos. Meanwhile, the dynamics position of food industry exports is rising star in ten countries, and the rest are in the position of falling star and retreat. Factors that influence food exports are economic distance, real GDP per capita of the destination country, the population of the destination country, price export, trade openness and tariff.DOI: 10.15408/etk.v17i2.7239

Analysis of Scraps Cause of Noodle Production in PT. Indofood CBP Success Makmur Tbk. using Fault Tree Analysis Methods

Food industry can survive when they can improve the productivity to meets the customer needs. PT Indofood CBP Sukses Makmur Noodle Division is one of food industry in Indonesia. Based on the production data of PT Indofood CBP Sukses Makmur Noodle Division Cibitung plant 3, found that the number of scrap noodles is almost always above the company minimum limit. This condition causes the company losing a profit of about 1.3 million per day per line. Based on these problems, this study aims to find the root causes of scraps of noodles production, then provide the advice on prevention of high amount of scrap of noodle production. The method used in this research is Fault Tree Analysis (FTA) and Five Step Plan analysis. The result of FTA analysis shows the cause of the high scrap of noodle production is the number of blocks noodles that fall as it passes through the conveyor in the frying and packing process, and because the operator less observant in connects the spice etiquette, less thorough to set the speed of the autoloader engine, less careful in case of handling the noodles. Suggested solutions include the implementation of 'seiri' by sorting reject spice oil and spices; 'seiton' by placing rolls of etiquette in easily reach place by the operator; 'seiko' by discarding etiquette, spices, and spiced oils into their respective containers; 'seiketsu' which is the division of responsibility for cleanliness of each operator; and 'shitsuke' ie routine briefing based on schedule.

Measuring Organizational Performance: A Case Study of Food Industry SMEs in Surabaya-Indonesia

The concept of the Balance Scorecard is premised on the need for financial and non-financial indicators that enable a holistic measurement of performance of the organization. The food industry in Indonesia is experiencing positive and significant growth in their performance, however in terms of quality is still not satisfactory. Although performance measurement research has gain great interest, but the effectiveness of the Balance Score Card as a performance measurement tool for food industry SMEs in Surabaya-Indonesia were not widely studied. This research objective was to determine the performance of food industry SMEs in Surabaya-Indonesia by using the Balance Scorecard as a performance measurement tool. This study was designed as a cross-sectional survey of the SMEs food industry in Surabaya-Indonesia. The population was 112 food industry SMEs in Surabaya from which 88 SMEs were used as a sample in this research. Primary data was collected using questionnaires which were administered to managers or owners in the firms. Data was analyzed using descriptive analysis and presented in tables. The study found that on average the respondents agree that they have good organizational performance. Organizational Performance based on Customers Perspective rated as the highest performance, followed by Learning and Growth Perspective; and Internal Business Process Perspective. The Financial Performance Perspective is rated relatively lower.

Factors Affecting Consumers’ Decision in Purchasing MUI Halal-Certified Food Products

As the largest Muslim population in the world, Indonesia has a promising potential of halal food industry in terms of economic and market values. This research aims at analyzing factors affecting consumers’ decision in purchasing MUI halal-certified food products by employing survey method and descriptive analysis approach. Three hundred respondents are selected using non-probability convenience sampling technique and are analyzed using multiple regression. The criteria of the respondents are Muslim and have bought Indonesian halal-certified food products in the last one-month. While the dependent variable in this study is purchasing decision (Y), the four independent variables are cultural and religious factors (X 1 ), social factor (X 2 ), personal factor (X 3 ) and psychological factor (X 4 ). This study finds that the four independent factors significantly influence consumers’ decision in purchasing MUI halal-certified food products. However, social factor are negatively related with the consumers’ purchasing decision. This study is expected to deliver the information on the halal food purchasing decisions from the perspective of the customers in order to provide recommendations to develop halal food industry in Indonesia.

Pineapple peel wastes as a potential source of antioxidant compounds

Indonesia is a large pineapple (Ananas comosus) producing country. Food industries in Indonesia processed this fruit for new products and further resulted wastes of which cause an environmental problems. Approximately, one pineapple fruit total weight is 400 gr of which 60 g is of peel wastes. In order to reduce such pineapple peel wastes (PPW), processing to a valuable product using an environmentally friendly technique is indispensable. PPW contained phenolic compound, ferulic acid, and vitamin A and C as antioxidant. This study aimed to PPW using ethanol and water as well as to analyze its chemical properties. Both dried and fresh PPW were extracted using mixtures of ethanol and water with various concentrations ranging from 15 to 95% (v/v) at room temperature for 24 h. The chemical properties, such as antioxidant activity, total phenolic content (Gallic acid equivalent/GAE), and total sugar content were determined. The results showed that the range of Inhibition Concentration (IC)50 value as antioxidant activity of extracts from dried and fresh PPW were in the range of 0.8±0.05 to 1.3±0.09 mg.mL-1 and 0.25±0.01 to 0.59±0.01 mg.mL-1, respectively, with the highest antioxidant activity was in water extract. The highest of total phenolic content of 0.9 mg.g-1 GAE, was also found in water extract.

Managing supply chain uncertainty with emerging ethical issues

Purpose The purpose of this paper is to empirically investigate effective management strategies for 14 sources of supply chain uncertainty, with a particular emphasis on uncertainties or strategies that involve ethical issues. Design/methodology/approach Manufacturing strategy theory, underpinned by alignment and contingency theory, is used as the theoretical foundation. Multi-case study data are collected from 12 companies in the Indonesian food industry, including four focal manufacturers, four first-tier suppliers, and four first-tier customers (retailers). Findings Within the context of appropriately aligned management strategies to address 14 sources of uncertainty, three ethical issues are empirically identified: first, collusion amongst suppliers to ration supplies and increase prices; second, unethical influences on government policy; and third, “abuse” of power by large retailers at the expense of smaller competitors. Joint purchasing is argued to be a key strategy for combatting the first of these ethical issues. Research limitations/implications The study is limited to the Indonesian food industry, and so further research is needed in other cultures/contexts. Practical implications Management strategies that aim to reduce an uncertainty at its source lead to better overall supply chain performance than strategies that merely cope with uncertainty, which only have an impact on firm-level performance. Social implications The ethical issues identified have implications for fair negotiations between customers and suppliers. Originality/value This study is unique in its in-depth case study-based empirical investigation of the management of multiple supply chain uncertainties; and in its discussion of ethical issues in this context.

Corporate social responsibility diffusion by multinational subsidiaries in Indonesia: organisational dynamic and institutional effect

Purpose– The purpose of this study is to explore the extent of relational and institutional pressures’ influence on both the motivation for and diffusion of corporate social responsibility (CSR) practices of multinational corporation (MNC) subsidiaries in the food industries in Indonesia.Design/methodology/approach– This study uses qualitative approach, and the data were collected by interviewing CSR managers and investigating the CSR practices and the annual reports of six subsidiaries of food-manufacturing MNCs in Indonesia.Findings– This study found that internal pressures within MNC organisations are the main drivers of their CSR practices. These finding were, then, refined to account for local cognitive and normative institutional pressures. It was also found that while regulation in a host country was critical to its subsidiary compliance, it did not contribute appreciably to the precise types of CSR practices. The (isomorphic) similarity of CSR patterns had less to do with the institutional pressures but more with sector- or field-level pressures in food manufacturing. Most MNC subsidiaries focused on issues such as agricultural or rural development (related to their supply chain) or health and nutrition (related to their core business).Research limitations/implications– This study focuses on a specific industrial sector (food and beverage manufacture); therefore, the isomorphic patterns could not be concluded as an influential effect of the institutional context of Indonesia; rather, they are due to sectoral- or field-level pressure in food and beverage manufacturing. To confirm this study results, a multi-sectoral involvement in future studies is suggested.Originality/value– This study uses organisational dynamics and institutional theory to explore CSR adoption in multinational subsidiaries in Indonesia.

An Overview of The Traditional Use of Sago for Sago-based Food Industry in Indonesia

<p>The use of sago had been practiced traditionally since ancient times by people who live in sago producing areas in Indonesia, and it had been able to gradually create sago-based food industry. As a result, sago has become an important raw material. Nevertheless, most sago-based food industry occurs naturally without an integrated comprehensive plan. The processing skills are inherited from the ancestors and handed down to the next generation continuously. In addition, there are many descriptions of the traditional way to prepare foods from sago. Surely, the wider utilization of sago can be a catalyst for rural industrial development. Thus, this paper is intended to deliver information about the diversity of traditional use of sago for sago-based food industry from all the major sago-producing areas in Indonesia in order to focus the farmers`, entrepreneurs’, and Indonesian government`s attention. It is predicted that sago demands in the future will increase. The sustainability of sago as a raw material for sago-based industry, however, will not be discussed in this paper. Further studies on that is needed</p><strong>Keywords:</strong>Sago-based food Industry, Sago Palm, Sago Starch, The use of Sago. <p> </p>

Compressed Air System Optimization: Case Study Food Industry in Indonesia

Compressors and compressed air systems was one of the most important utilities in industries or factories. Approximately 10% of the cost of electricity in the industry was used to produce compressed air. Therefore the potential for energy savings in the compressors and compressed air systems had a big challenge. This field was conducted especially in Indonesia food industry or factory. Compressed air system optimization was a technique approach to determine the optimal conditions for the operation of compressors and compressed air systems that included evaluation of the energy needs, supply adjustment, eliminating or reconfiguring the use and operation of inefficient, changing and complementing some equipment and improving operating efficiencies. This technique gave the significant impact for energy saving and costs. The potential savings based on this study through measurement and optimization e.g. system that lowers the pressure of 7.5 barg to 6.8 barg would reduce energy consumption and running costs approximately 4.2%, switch off the compressor GA110 and GA75 was obtained annual savings of USD 52,947 ≈ 455 714 kWh, running GA75 light load or unloaded then obtained annual savings of USD 31,841≈ 270,685 kWh, install new compressor 2x132 kW and 1x 132 kW VSD obtained annual savings of USD 108,325≈ 928,500 kWh. Furthermore it was needed to conduct study of technical aspect of energy saving potential (Investment Grade Audit) and performed Cost Benefit Analysis. This study was one of best practice solutions how to save energy and improve energy performance in compressors and compressed air system.

Influence of Intuition and Capability on Accelerated Product Development in Big-Medium Scaled Food Companies in Indonesia

To face the pressure of competition, more and more companies perform accelerated product development by shortening the product development time so that the product will arrive at the market at the shortest time. Food industry has also performed accelerated product development. Using evolution theory, contingency theory, market-based view, and resource-based view a research model has been built. Results of the research’s initial identification show that food industry in Indonesia is in growth level towards maturity level. Meanwhile, competition in the food industry is in moderate level towards hypercompetition level. Tactics of accelerated product development often carried out is by simplifying the product development steps to eliminating the product development steps. The innovation type used is incremental innovation since it is fast and easy. Results of the research give information that intuition and capabilities are the main motivating factors for big-medium scaled food companies in Indonesia to accelerate product development. 

Analysing Parallel Interaction in Supply Chains: A Supply Chain Network Perspective

Supply chain management refers to managing a serial chain of businesses which typically consists of retailer, distributor, manufacturer and supplier. However, the businesses in each tier also interact with other channels in the supply chain. These interactions are called parallel interactions and they can directly affect the traditional, serial interactions of a single supply chain. Serial and parallel interactions in a supply chain increase levels of complexity and uncertainty. As a result, it is important to move analysis from dyadic to supply chain network perspective to understand the issues better. The main objective of this study is to investigate parallel interaction issues and how it affects supply chain performance. An empirical study has been conducted in the food industry in Indonesia with inter-related companies. A two stages semi-structured interviews, with top executives from sampled companies have been conducted. The result of analysis helps to clarify previous studies and provide a better understanding of parallel interaction as a genuine source of uncertainty at supply chain level. Three strategies were also identified to effectively manage the issues caused by parallel interaction. DOI : https://doi.org/10.21632/irjbs.6.3.171-184 Keywords: Supply Chain, Parallel Interaction, Food Industry, Uncertainty Management

Analysing Parallel Interaction in Supply Chains: A Supply Chain Network Perspective

Supply chain management refers to managing a serial chain of businesses which typically consists of retailer, distributor, manufacturer and supplier. However, the businesses in each tier also interact with other channels in the supply chain. These interactions are called parallel interactions and they can directly affect the traditional, serial interactions of a single supply chain. Serial and parallel interactions in a supply chain increase levels of complexity and uncertainty. As a result, it is important to move analysis from dyadic to supply chain network perspective to understand the issues better. The main objective of this study is to investigate parallel interaction issues and how it affects supply chain performance. An empirical study has been conducted in the food industry in Indonesia with inter-related companies. A two stages semi-structured interviews, with top executives from sampled companies have been conducted. The result of analysis helps to clarify previous studies and provide a better understanding of parallel interaction as a genuine source of uncertainty at supply chain level. Three strategies were also identified to effectively manage the issues caused by parallel interaction.