Indonesia: Policy Highlights and Opportunities
Each year, approximately 48 million tons of food in Indonesia is either lost or wasted along the supply chain, causing an estimated 213 to 551 trillion Indonesian rupiah (Rp), or US$15 to US$39 billion, in economic loss. Much of this food is still safe for human consumption and could be redirected to the 20 million people in Indonesia facing hunger.
Atlas Research: Indonesia
Indonesia research was published in September 2022 and was made possible with the advice and support of our on-site partners, including Food Cycle Indonesia and Scholars of Sustenance Indonesia.
Food Safety for Donations
Indonesia should amend the Food Law and Government Regulation No. 86/2019 to feature a donation-specific chapter or draft regulations related to the law that elaborate on food safety for donations.
The Indonesian government could also produce and disseminate clarifying guidance on food safety requirements relevant to donation.
Indonesia’s date labeling scheme mandates that all foods (with minor exceptions) have a quality-based date label denoted by “best before,” and prohibits the distribution of food past the date label.
Indonesia should amend the Food Law to establish a dual date labeling system that distinguishes between safety- and quality-based labels and permit the sale and/or donation of food past its quality-based date.
Policy Opportunities and Recommendations
Liability Protection for Food Donations
Indonesia does not provide explicit legal protections for food donors and food recovery organizations, which could contribute to public relations fears and ultimately discourage food donation.
Indonesia should enact national legislation that establishes clear and comprehensive liability protection for food donors and food recovery organizations.
Tax Incentives and Barrier
Indonesia’s Income Tax laws do not include a tax incentive specific to food donation, though they do offer a deduction for charitable contributions related to specific causes (e.g., natural disasters, education, etc.).
Additionally, Indonesia’s value-added tax (VAT) applies to food and requires the payment of an 11% tax at each stage of the supply chain including donation, which could create a financial burden on food donors and food recovery organizations.