Kemenperin Prepares Permenperin on the Provision of Incentives for IKM in the Food Sector

The Ministry of Industry (“Kemenperin”) is currently preparing a Regulation of the Minister on the provision of fiscal and non-fiscal incentives for small and medium industries in the food sector. Reni Yanita, Director General of Small-, Medium-, and Miscellaneous Industries (Industri Kecil, Menengah, dan Aneka - “IKMA”) at the Kemenperin, stated that the regulation is intended to implement Regulation of the President No. 81 of 2024 on the Acceleration of Food Diversification Based on the Potential of Local Resources (“Perpres 81/2024”).

Reni stated that the Regulation of the Minister will provide a range of support measures, including facilitated access to financing, technology subsidies, accelerated certification processes, facilitation of Business-To-Business (“B2B”) market access, as well as support for product standardization.

“With regard to fiscal incentives, it will essentially formalize existing practices, most of which are related to investment,” Reni said to Hukumonline.

According to Reni, in formulating the implementing regulations under the Perpres, Kemenperin is collaborating with the National Food Agency (“Bapanas”) on the diversification of carbohydrate-based products. “Whether the outcomes will be set out in separate Ministerial Regulations is still under discussion,” she added.

Reni expressed her hope that the provision of these incentives would support the development of small,- and medium-scales food processing industries, while also expanding market access for domestically produced processed food products.