Boycott of Pro-Israel Products Hampers in Indonesian Food and Beverage Industry, Layoffs on the Horizon?

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boycott of pro-Israel products in Indonesia

LIPUTAN6 EN – The recent surge in the boycott of pro-Israel products in Indonesia has begun to impact the food and beverage (F&B) industry. The decline in demand and sales of F&B products, especially from Arab countries, raises concerns about potential layoffs in the sector.

According to data from the Association of Indonesian Soft Drink Industries (ASRIM), sales of soft drinks in Arab countries have experienced a drastic decline of up to 50% since the boycott began. This has certainly affected the production and operations of F&B companies in Indonesia, most of which export their products to Arab countries.

“The impact of this boycott is quite significant for the F&B industry. The decline in demand and sales of F&B products, especially from Arab countries, will certainly put pressure on companies’ performance and could lead to layoffs,” said ASRIM Chairman Rachmat Hidayat in a press conference in Jakarta on Wednesday (March 14, 2024).

Rachmat predicts that if the boycott continues, there will be a wave of layoffs in the F&B industry in the near future. He estimates that at least 10% of the total 1.5 million workers in the F&B sector are at risk of losing their jobs.

“If this boycott is not stopped immediately, we will see a wave of massive layoffs in the F&B industry in the near future. This will certainly worsen the economic situation and increase the number of unemployed people in Indonesia,” Rachmat emphasized.

In line with Rachmat, Secretary General of the Indonesian Food and Beverage Entrepreneurs Association (GAPMMI), Franky Sibarani, also expressed his concern about the impact of the boycott on the F&B industry. He said that F&B entrepreneurs are currently struggling to survive and find solutions to avoid layoffs.

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“F&B entrepreneurs are currently struggling to survive. We are looking for solutions to minimize the impact of this boycott, such as finding new export markets and increasing sales in the domestic market,” explained Franky.

Franky appealed to all parties to work together to find the best solution so that the boycott does not further worsen the situation of the F&B industry and the national economy. He called on all parties to prioritize dialogue and diplomacy in resolving this issue.

“We appeal to all parties to work together to find the best solution so that this boycott does not worsen the situation. Let us prioritize dialogue and diplomacy in resolving this issue,” said Franky.

Government Intervention Requested

In response to this situation, Rachmat and Franky asked the government to intervene and help the F&B industry in dealing with the impact of the boycott. They hope that the government can take various measures, such as:

  • Conducting diplomacy with Arab countries to resolve the boycott issue.
  • Promoting Indonesian F&B products in new export markets.
  • Providing incentives and facilities for F&B entrepreneurs to increase production and sales in the domestic market.

“We hope that the government can intervene and help the F&B industry in dealing with the impact of this boycott. Government assistance is urgently needed to prevent massive layoffs in the F&B sector,” concluded Rachmat and Franky.

The boycott of pro-Israel products in Indonesia has begun to impact the F&B industry. The decline in demand and sales of F&B products raises concerns about potential layoffs in the sector.

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The government is expected to intervene and help the F&B industry in dealing with the impact of the boycott by taking various measures, such as diplomacy with Arab countries, promoting F&B products in new export markets, and providing incentives for F&B entrepreneurs.

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