The Importance of Trade For MSEs in The Indonesian F&B Sector

Abstract

ABOUT THE CENTER FOR INDONESIAN POLICY STUDIESCenter for Indonesian Policy Studies (CIPS) is a strictly non-partisan and non-profit think tank providing policy analysis and practical policy recommendations to decision-makers within Indonesia's legislative and executive branches of government. CIPS promotes social and economic reforms that are based on the belief that only civil, political, and economic freedom allows Indonesia to prosper. We are financially supported by donors and philanthropists who appreciate the independence of our analysis. KEY FOCUS AREAS:Food Security & Agriculture: To enable low-income Indonesian consumers to access more affordable and quality staple food items, CIPS advocates for policies that break down the barriers for the private sector to openly operate in the food and agriculture sector. Education Policy:The future of Indonesia's human capital need to be prepared with skills and knowledge relevant to the 21st century. CIPS advocates for policies that drive a climate of healthy competition amongst education providers. Such competition will drive providers to constantly strive to innovate and improve education quality for the children and parents they serve. In particular, CIPS focuses on the improvement of operational and financial sustainability of low-cost private schools who serve the poor.Economic Opportunities: CIPS advocates for policies that expand economic involvement and opportunities for Indonesian entrepreneurs and businesses; as well as for policies that open wider opportunities for lowincome Indonesians to access decent incomes and create wealth.

Examining the Influence of CEO Characteristics and Brand Image on Performance of Food and Beverages MSMEs in Indonesia: The Mediating Role of Competitive Advantage

“…According to the data published by LPPM UI, Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in Indonesia, contributing to a substantial portion of the country's GDP, accounting for approximately 61% in 2018 and employing 97% of the workforce. Notably, the food and beverage sector within this segment makes the largest non-oil and gas industry contribution to Indonesia's GDP, growing at an average rate of 7.78% annually (Gupta, 2023). To measure the performance of Food and Beverages MSMEs in Indonesia we use several indicators such as financial performance, innovative performance, production performance, and marketing performance.…”

“…The food and beverage (F&B) industry in Indonesia stands as a vital pillar of the nation's economic landscape, constituting over 60% of the GDP and serving as the primary contributor to the non-oil and gas sector (Permana et al, 2016. ).Moreover, the F&B industry is a significant employer, with MSMEs employing more than half of the workforce within this sector (Gupta, 2023). The industry displayed commendable resilience during the pandemic, showcasing a notable growth of 0.2% in revenue yearon-year during the second quarter of 2020, attributed in part to the digital presence of F&B MSMEs (World Bank, 2020).…”