The Government set for export to non-traditional destination countries at around 25% in 2012. For that matter the Ministry of Trade planned to probe for export opportunities to non-traditional countries. The Director General of International Trading, the Ministry of Trade Deddy Saleh in Jakarta (Monday 2/4/2012) that he was determined to promote export volume by launching intensive promotion campaign to countries which had never been buyers of Indonesian products. The objective was that export diversification plan would expand export volume to non-traditional destination countries to 25% of total export.
Deddy stated that export diversification, country wise or product wise and strengthening command over the domestic market was the Government’s strategy in the effort to balance export downturn. In case of diversification of destination countries the focus was on Africa and Latin America. In case of the domestic market, the Government planned to protect the domestic market by controlling import. “We have set growth target of export to non traditional markets at least 25%” Deddy underscored.
Deddy furher elaborated that the Government planned to speed up diversification of export market from the present traditional market to new market destinations. Diversification was aimed at some African countries like Nigeria, Oswana and other countries. In addition to that expansion was also to be aimed at Central America like Mexico and Latin American countries like Brazil, Argentine, Chille, Columbia, Peru and some East European states like Hungary, Rumania, Bulgaria and some markets in Central Asia and the Middle East.
Deddy stated that in 2012 the Government was not over ambitious about setting export target but he believed that export realization of USD 200 billion could be attained. To quote data of the Central Statistics Board (BPS) Indonesia’s total export through 2011 was posted at USD 203.62 billion, up by 29.05% against the previous year. Data of the National Development Planning Board (Bappenas) had it that total export to the traditional markets constituted 49.5% of total export: five main destination countries were among other China, Japan, India, Singapore and the USA.
Deddy admitted that so far the Government had not maximized efforts in approaching non traditional buyer countries like countries in Latin America and Africa. For that matter, Deddy was determined to enhance program of export diversification. This program according to Deddy was designed to anticipate the impact of global economic slowdown on Indonesia’s export growth. He believed that market diversification and strengthening of product competitive edge should run in tandem because both were the key factors to penetrating overseas market and promoting sustainable trade relationship. Competitive products were more easily acceptable at the international market which might serve as road opener to greater export.
All efforts to diversify the market by exploring non-traditional markets, Deddy said, could serve as solution to economic uncertainty in the usual export destination countries like the USA and Europe and the effect on Indonesia’s export performance. Indonesia, according to Deddy, planned to explore the emerging markets in Asia, Africa, the Middle East and Latin America to market national products. In addition to that, planned to reform rules and regulations, so they could create an economic climate which was conducive to progress. This was necessary because they were aware of the so many handicaps and hindrances which stagnated business activities like slow infra structure development, high logistics expenses and inefficient services at seaports.
Business News - April 9, 2012