opportunity supplement indonesia

Indonesia’s State of Health and Investment Opportunities in Food Supplement Business

  • InCorp Editorial Team
  • 25 May 2021
  • 4 minute reading time

The Indonesian economy has been growing at a staggering pace in the past decades, but the country’s state of health is currently facing complex problems.

Due to the lack of national reformulation agenda by the government, the majority of consumers depend on the food industry for healthier products. Therefore, they have a pivotal role to play in restructuring national health by providing more healthy products to Indonesian citizens.

Supplement Indonesia: Market Landscape

According to Statista, Indonesia’s revenue in the Vitamins & Minerals segment is expected to clock USD 325.66m in 2021 and is set to grow at 2.80% annually (CAGR 2021-2025). The segment only comprises over-the-counter natural and synthetic food supplements.

In addition, World Bank data also show that Indonesia’s health expenditure per capita is on the rise, from US$27 US dollars in 2004 to US$112 US dollars in 2018, growing at an average annual rate of 11.52%.

This increase is mainly due to higher demand from the younger population; Indonesians’ standard of living is rising due to better-paying jobs, which increases the size of the middle class, which in turn spends more on health products, including food supplements. 

Supplement Indonesia: Prospective Consumers

From fulfilling the demand for cereals to diversifying diets towards more balanced nutrition, Indonesia is leaving no stone unturned in bolstering the Health and Food Supplement market. Following are some key market drivers for food and nutrient supplements in Indonesia.

The Middle Class

Over the past 15 years, Indonesia has witnessed its middle class grow from 7% to 20% of the population. Subsequently, their consumption has also been growing at 12% annually. Accompanied by a high rate of urbanization, the dietary patterns have shifted towards more balanced nutrition. Access to the latest information has led middle-class consumer demands towards healthier and more diversified food. 

The Covid-19 Pandemic

As per a survey by Rakuten Insight conducted in July 2020, 84% of respondents from 25-34 years old and 83% respondents from 35-44 years old stated that their intake of dietary supplements like herbal or botanical substances, minerals, and vitamins have increased after the outbreak of the coronavirus disease. As suggested by these figures, the younger demographic is also inclined towards the use of dietary supplements, making this industry a promising prospect for investment.  

The  Elderly Population

Life expectancy in Indonesia has risen phenomenally from 45 to 69.2 for males and 73.6 for women. Furthermore, the birth rate has also declined dramatically, making Indonesia the fifth-largest country to have an elderly population in the world. 

As the elderly body’s capacity to absorb nutrition from food often gets reduced, it renders them rely majorly upon vitamin supplements to balance their diet. 

The culmination of all these market drivers coupled with the fact that most supplements are imported (according to Ministry of Health data in 2017) has set the stage for foreign investors to capitalize on untapped potential opportunities available in the market.

Registering Food Supplement Indonesia

For starting a business in Indonesia as a foreigner, company establishment is required to proceed to product registration. The two common types of legal entities are PT PMDN (Local Company) and PT PMA (Foreign Company), each has its own advantages.

After setting up, the company also must have an Indonesia Import License – locally known as Angka Pengenal Impor (API) in order to become an importer in Indonesia.

Subsequently, it is also mandatory to go through The Standard Procedure of Food Supplement Registration to start a venture in the food supplement industry. One must go through the stretch of processes including pre-assessment of required documents and assessment of the actual products by the Agency of Drug and Food Control Republic of Indonesia.

Also, since the majority of the population in Indonesia follows Islam, investors should certainly care about halal certification issued by Indonesia Ulema Council (MUI) as well.

How Cekindo Can Help You

Complying with the local regulations of product registration, import-export, company establishment, and halal certification may be challenging to investors. Thus, it is always viable to have an outsourcing entity like Cekindo consult you through the stretch of these processes. Cekindo can also act as your Importer of Records provider in Indonesia handling all aspects of importing, including documentation, payments of duties, and delivery of your product. 


Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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