The Ministry of Trade encouraged businesspeople to grab the opportunity in the vast domestic market as the world market was low. The Director General of Domestic Trading Sri Agustina stated in Jakarta on Monday (10/8) that in a situation where export market as the world market was low. The Director General of Domestic Trading Sri Agustina stated in Jakarta on Monday (10/8) that in a situation where export market was low, the Government aimed at the domestic market as sustainer of business; amounting others by developing small business (UMKM).
Sri stated that today UMKM products was getting more varied and ready to compete, but it was necessary to educate local consumers about local products. She said that Indonesia had great opportunity to market innovative products, at home and abroad. “The point now is how we could grab the opportunity, we are optimistic that export expansion of 300% could be met by 2019.”
Sri remarked further that Indonesia’s premium export product today was only palm. In pursuing national export target, Indonesia should not just rely on one premium product but must develop other products through product innovations. People’s purchasing power must be strengthened.
Innovation of products would increase sales of UKM and promote economy of the nation. To promote product innovation, the Ministry of Trade was now building a Regional Design Center in Jakarta. She expected that products based on cultural heritage must be developed and rural people must be supported in developing traditional products, especially toward AEC.
To grab opportunity in the domestic market, the role of provincial Governments was vital and badly needed, especially in Semester 1 of 2015 when export of non oil-gas commodities was showing downturn against same period last year. The Director General of National Export Development Nus Nuzilla Iskak stated that she would call out provincial Governments to foster coordination and synergy in developing national export.
Nus stated that the Central and local Government must share the same perception in promoting national export. Local producers of traditional products were now facing hard challenges especially in strengthening competitiveness. The crucial hindrance in strengthening competitiveness of UMKM was production cost including cost of raw materials, wages, energy, and illegal collections.
Data of the Ministry of Trade had it that accumulatively Indonesia’s export value through January-June 2015 was posted at USD 78.29 billion or down by 11.86% against Semester 1 of 2014. Value of non oil-gas export in Semester 1 came to USD 68.30 or down by 6.62% against Semester 1 last year. In terms of product’s origin, the province being the highest contributor to national export was West Java, contributing 16.55% to total export, followed by East Kalimantan 12.58% and East Java 11.63%. (SS)
Business News - August 14, 2015