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
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