Horticultural Producers and Supermarket Development in Indonesia

By Natawidjaja, R., T. Reardon., and S. Shetty, with T.I. Noor, T. Perdana, E. Rasmikayati, S.  Bachri, and R. Hernandez.

World Bank/Indonesia, June 2007

Research co-funded by the Regoverning Markets programme

The value of fresh fruits and vegetables (FFV) output doubled in Indonesia over 1994-2004, to become a 10 billion dollar industry. While FFV expenditure was 50 percent of Indonesian rice expenditure in 1994, it had risen to 75 percent of rice outlays by 2004 - and in urban areas, was at 100 percent that is, urban Indonesians, nearly half the population, spend the same on rice and FFV. Nearly all of the FFV market is domestic: while imports of FFV nearly tripled over that decade, but by today are still very minor, accounting for about 3 percent of FFV consumption in Indonesia (the same as the developing country average).

This study focuses on the main vector of globalization change on it, via the rapid rise of supermarkets, in particular in the past five years. Supermarkets occupied a tiny niche in the foodmarket through the 1980s.

Paper attached and also available for download at http://siteresources.worldbank.org/INTINDONESIA/Resources/Publication/280016-1168483675167/Holtikultura_en.pdf