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Siân Yates

Siân Yates

4 November 2024

Will Indonesia's proposed nutrient labelling system shake up the industry?

Will Indonesia's proposed nutrient labelling system shake up the industry?

Indonesia is poised to implement a new nutrient labelling system, called Nutri-Level, which aims to provide consumers with clearer nutritional information on food and beverage products.


This initiative mirrors Singapore’s Nutri-Grade system and reflects a growing trend among consumers who prioritise transparency regarding nutritional content.


According to recent research from GlobalData, 84% of Indonesian respondents indicated that easy access to ingredient and nutritional information – such as through QR codes on packaging – significantly influences their purchasing decisions.


What is the Nutri-Level system?


The Nutri-Level system is Indonesia's forthcoming nutrient labelling initiative designed to enhance consumer awareness regarding the nutritional quality of food and beverage products.


Modelled after Singapore’s Nutri-Grade system, Nutri-Level aims to provide clear, standardised nutritional information that empowers consumers to make healthier dietary choices.


As part of a broader global trend towards transparency in food labelling, Nutri-Level will categorise products based on key nutritional components, including sugar, saturated fat, sodium and overall energy content.


This system is particularly relevant in Indonesia, where diet-related health issues, such as diabetes and hypertension, are on the rise. Recent health surveys indicate alarming prevalence rates, with diabetes affecting approximately 10.9% of the population and hypertension impacting 34.1%.


Mani Bhushan Shukla, a consumer analyst at GlobalData, said: “The purpose of nutrition labelling systems, including daily intake guidelines, warning indicators, traffic light systems, star ratings and nutrition scores, is to facilitate informed consumer choices and encourage a shift towards healthier food selections. These systems classify food and beverages by assessing their sugar, fat, sodium and energy levels in their compositions."


He continued “The use of standardised grading systems featuring colours, symbols and vectors enhances readability for consumers, offering a clearer understanding than the detailed ingredient lists on product packaging. In addition, as these gradings/rankings are defined, they are more straightforward than the myriad of health and natural claims that food manufacturers often use. Some of these claims can be deceptive; for instance, a product labelled as ‘no-added sugar’ may still contain ingredients high in natural sugars like fructose.”


Deepak Nautiyal, GlobalData's consumer and retail commercial director for the Asia-Pacific and Middle East, added: “The prevalence of diet-related diseases, particularly diabetes and hypertension, is notably high in Indonesia, which underscores the potential benefits of the Nutri-Level system for public health. The 2018 Basic Health Research (Riskesdas) reveals that diabetes prevalence stands at 10.9%, while hypertension affects 34.1% of the population."


He commented: "Nutri-Level in Indonesia will implement a rating label that evaluates sugar, saturated fat and various nutritional components. The finalisation of the draft regulation is anticipated to occur by the end of 2024.”


The initiative is part of Indonesia's commitment to public health and nutrition, seeking to align with international best practices in food labelling. However, its success hinges on collaboration between the government, food and beverage manufacturers, and consumers.


The government will play a crucial role in educating the public about the new system, while manufacturers are encouraged to innovate and reformulate products to meet healthier standards.


Address implementation challenges


However, the introduction of the Nutri-Level system is not without challenges. Resistance from the food and beverage industry is a significant concern, particularly among large manufacturers whose products may be adversely affected by the new ratings, especially those high in sugar and saturated fats.


For the system to succeed, collaboration between the government and industry stakeholders will be essential to balance regulatory objectives with the interests of manufacturers.


Moreover, public education will be crucial in familiarising consumers with the new labelling system. Many Indonesians may not be aware of how to interpret the Nutri-Level ratings, making effective communication and outreach imperative. The government will need to actively promote the system to ensure that consumers can leverage this information to make healthier choices.


The successful rollout of Nutri-Level will depend on a concerted effort among government bodies, industry players, and the community.


The government is tasked with establishing effective regulations and educational initiatives, while manufacturers must adapt their product offerings to align with the new standards. Community acceptance and use of the system will further amplify its impact on public health.


An eye to the future


With similar systems already in place in Singapore, Malaysia and Thailand, the potential for a cohesive approach across the Asia-Pacific could streamline operations for food and beverage manufacturers.


However, the presence of multiple systems may also lead to increased costs in compliance and production, underscoring the need for regional harmonisation of food labelling regulations.


Indonesia's Nutri-Level system represents a significant step towards enhancing consumer awareness and public health. While the path forward may be fraught with challenges, the potential benefits for both consumers and the food and beverage industry are considerable, setting the stage for a healthier future in one of Southeast Asia's largest markets.


#Indonesia #labelling #nutrition #health

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