Ensuring access to nutritious food and maintaining high standards in food supply is essential for the expanding population of Indonesia, as outlined in Law No. 18 of 2012. Within the framework of the National Industrial Development Master Plan (RIPIN) for the years 2015–2035, the meat processing industry plays a pivotal role. The surge in income levels, changes in dietary habits, and the growth of modern retail outlets have increased the demand for processed meat products in the country. However, the industry faces obstacles such as low levels of meat intake and a heavy dependence on imported raw materials, highlighting the need for a well-rounded strategy to boost competitiveness, encourage consumption, and tackle nutritional issues. This literature review delves into the Indonesian meat processing industry’s competitiveness, addressing the need for strategic enhancements to meet domestic and global demands. It identifies key challenges, including the reliance on imported raw materials and limited export market expansion. Through a comprehensive literature review, it explores strategic frameworks and innovative approaches, emphasizing the Industrial Competitiveness Index (ICI), SWOT analysis, and the Analytic Hierarchy Process (AHP) for strategic decision-making. Recommendations include investment in technology and innovation, enhancing supply chain sustainability, market diversification, skill development, and regulatory support. The paper concludes that a multifaceted strategy integrating these elements can significantly boost Indonesia’s meat processing industry’s competitiveness and sustainability.