Analysis of organic food regulation and its impact on organic supply chains in indonesia

Abstract

The organic food business has been growing rapidly in Indonesia after the launch of Indonesia Go Organic 2010 in 2005. In line with the increased consumer awareness of food safety and the impact of pesticides and other chemical residues on human health, the consumer demand for various organic foods have increased. To protect the organic food consumer, the Government of Indonesia has introduced regulations pertaining to the production, labeling and marketing of organic food. How these regulations affect the organic supply chain in Indonesia are discussed in this paper. Five marketing models are applied to selling organic food in Indonesia. In order to convince the consumer of the organic status of the product, different producers take different approaches including; (a) certifying their product through third party certification; (b) certifying through a participatory guarantee system; (c) testing their product and put a pesticide free claim on the label; and (d) a self-claim of its organic status without any proof, but relying on consumer trust.