Sunday, 3 June 2012


            Observing the current trend, it seems that some economists have signal and warning about deficit in trade balance in the next quarter. If the warning is proven correct, it means that import will be higher than export. Such a situation is not expected and the government should respond to it by applying an appropriate policy. This statement was told by Industry and trade policy observer, Fauzi Aziz, to Business News.

            Like it or not, import must be controlled and supervised, especially import of consumption goods. The country has such authority in the framework of supporting of investment activities. Export should be applied on non-locally-made ingredients should be made easier.

            In this case, public policy makers should not be in the import0based mainstream, but should be in the domestic resource-based mainstream so that the strength of the national economy will still be managed properly and supported by effective monetary, fiscal and administrative policy. In this connection, control over circulating goods must be intensified and the implementation is not limited to fire extinguishing, but it should include elimination of illegal import.

            In the framework of procurement of government’s goods and services, it is time to consider so that procurement of locally-made goods with 40% or more local content (TKDN) could be done by direct appointment like the one applied on procurement of motor vehicles (the important thing that the price is reasonable and the goods have been verified). With a potency of 134 millions of middle-class people in Indonesia who are potential buyers that have specific lifestyle and consumption pattern, they become the target of marketing of imported goods.

            Therefore, Fauzi explained, demand of those goods must be sufficed by local products. It is a joint responsibility of the government including regional government, business community and society which is in the same mainstream to make Indonesia a country who is able to maintain national economic sustainability and growth. Surplus in capital balance, surplus in current transactions balance, and finally, payment balance will be safe and invulnerable. The Trade Ministry is preparing an Inter-regional Potency Exhibition.

            Vice Minister of Trade, Bayu Krisnamurthi, during a talk opportunity in Bali, said that one of the attempts to increase consumption of domestic product and to revive potency of regional products, the Domestic Trade Directorate will simultaneously arrange exhibition to promote domestic products.

            The Trade Ministry has designated 5 regions which will be started in May this year in Semarang and will be continued with other regions such as Sumatera, Kalimantan and Sulawesi. The approach taken is domestic market optimalization because the domestic market is becoming stronger to become stimulator of national economic growth. Moreover, with a potency of 30 millions of middle-class people, the domestic market must be filled with qualified domestic products.

            The middle-class people need products whose class is more qualified, and they will seek products whose market is filled by imported products. Producers and exhibition participants should create a new market. Therefore, the approach taken is different from the old one. In the old approach, if an exhibition is held in Semarang, the participants are Semarang citizens, and the products exhibited are to fulfill demand of Semarang citizens.

            Now, we changed the orientation where those who participate in the exhibition in Semarang must be citizens from other provinces or regions. But, the participants who are from outside Semarang are invited to fulfill demand of their products in Semarang. The products exhibited are culinary products, prepared foods, snack foods, including garments, shoes, footwear and furniture because those products are believed to be the leading products, Bayu explained.  

Business News, May 9, 2012

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