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By CNBC Indonesia
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Get instant insights and key takeaways from this YouTube video by CNBC Indonesia.
Macroeconomic Data vs. Field Reality
📌 Both the Manufacturing Industry Index (IGI) and Purchasing Managers' Index (PMI) showed improving trends since July/August.
📉 A key concern is the production parameter, which slightly decreased from 46.84 in July to 44.8 in August.
🍲 The Food and Beverage sector showed exceptional demand growth (around 14.5% for processed food up to June) despite economic uncertainty.
🛋️ Demand is heavily skewed towards primary sector needs (e.g., instant noodles, bottled drinks), while secondary/tertiary sectors face stagnation due to reduced purchasing power for non-essential goods.
Challenges and Mitigation Strategies in F&B
💰 The main challenge for the industry is consumer purchasing power.
🔗 Companies in the secondary sector are adapting by seeking cheaper alternative raw materials or substitutes to maintain affordability.
🌏 Global geopolitical instability is feared as it can disrupt supply chains, increase logistics costs, and prolong shipping times.
🏭 A major goal is reducing reliance on imported raw materials by increasing the utilization of local resources, requiring strong government support for the upstream sector.
Impact of Exchange Rates and Business Scale
🤝 Large corporations counter fluctuating global prices and currency risks by entering into long-term procurement contracts during price dips and using currency hedging.
📉 Small and Medium Enterprises (SMEs) are highly vulnerable, often holding minimal stock (daily or weekly), forcing them to immediately adjust selling prices when raw material costs rise.
📏 SMEs often resort to 'shrinkflation' (e.g., reducing the size/quantity of products like tempeh or tofu) to maintain the same retail price point.
Key Points & Insights
➡️ The upstream sector (raw material supply) is the biggest bottleneck, exhibiting slower growth, leading to increased reliance on imports.
➡️ Large businesses use long-term contracts and hedging to absorb shocks, while SMEs are forced to pass costs to consumers or reduce product size.
➡️ Stabilizing the global geopolitical environment is crucial for the F&B industry to manage logistics and material costs effectively.
📸 Video summarized with SummaryTube.com on Nov 07, 2025, 05:49 UTC
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Full video URL: youtube.com/watch?v=naS0ugoUgJw
Duration: 7:12
Get instant insights and key takeaways from this YouTube video by CNBC Indonesia.
Macroeconomic Data vs. Field Reality
📌 Both the Manufacturing Industry Index (IGI) and Purchasing Managers' Index (PMI) showed improving trends since July/August.
📉 A key concern is the production parameter, which slightly decreased from 46.84 in July to 44.8 in August.
🍲 The Food and Beverage sector showed exceptional demand growth (around 14.5% for processed food up to June) despite economic uncertainty.
🛋️ Demand is heavily skewed towards primary sector needs (e.g., instant noodles, bottled drinks), while secondary/tertiary sectors face stagnation due to reduced purchasing power for non-essential goods.
Challenges and Mitigation Strategies in F&B
💰 The main challenge for the industry is consumer purchasing power.
🔗 Companies in the secondary sector are adapting by seeking cheaper alternative raw materials or substitutes to maintain affordability.
🌏 Global geopolitical instability is feared as it can disrupt supply chains, increase logistics costs, and prolong shipping times.
🏭 A major goal is reducing reliance on imported raw materials by increasing the utilization of local resources, requiring strong government support for the upstream sector.
Impact of Exchange Rates and Business Scale
🤝 Large corporations counter fluctuating global prices and currency risks by entering into long-term procurement contracts during price dips and using currency hedging.
📉 Small and Medium Enterprises (SMEs) are highly vulnerable, often holding minimal stock (daily or weekly), forcing them to immediately adjust selling prices when raw material costs rise.
📏 SMEs often resort to 'shrinkflation' (e.g., reducing the size/quantity of products like tempeh or tofu) to maintain the same retail price point.
Key Points & Insights
➡️ The upstream sector (raw material supply) is the biggest bottleneck, exhibiting slower growth, leading to increased reliance on imports.
➡️ Large businesses use long-term contracts and hedging to absorb shocks, while SMEs are forced to pass costs to consumers or reduce product size.
➡️ Stabilizing the global geopolitical environment is crucial for the F&B industry to manage logistics and material costs effectively.
📸 Video summarized with SummaryTube.com on Nov 07, 2025, 05:49 UTC
Find relevant products on Amazon related to this video
As an Amazon Associate, we earn from qualifying purchases

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