SMALL BUSINESS ADVISED TO PROBE ON EXPORT MARKET

National businesspeople called out small-and­-medium business [UKM] at home not to be over-as­tounded by local market potential which was reputa­bly enormous. Apparently many local businesspeople seemed to have high expectation of local market potentials. Moreover to consider people's increasing purchasing power in the regions for buying household needs.

No doubt at national scale, household consumption was high so it was most regretful if they were untapped and be benefited by foreign producers. Today Indonesia was planning to promote marketing of 10 commodities from domestic resources, which were fresh food, processed food, culinary products, cosmetics, footwear, household instruments, garments, textile, utensils, an jamu herbals.

However, the Indonesian Chamber of Commerce KADIN warned national businessplayers, especially UKM, not to be enchanted by the domestic market and be keen eyed enough to look at overseas market opportunities. Achmad Widjaja of the Perma­nent Committee of KADIN, Product Standardization Division stated in Jakarta on Thursday 110/41 great market potentials at home did not mean that market­ers only focused attention inward. The point was that toward the AEC era next year, competition would heighten. Overseas producers were eyeing on Indo­nesia's market opportunities.

Widjaja did not deny that market maximizing at home was an important thing especially in antici­pation of various global crisis trends that happened. He reminded that various circles predicted growth of market demand in 2014 would increase against previ­ous year. The growth would be especially in basic needs, textile industry and electronics. Such was on account of contraction in many countries and many producer countries were stepping up export in high amount to all the world.

           

Indonesia was one of the favorite export des­tinations among exporter countries. Achmad stated that if the domestic industry was unable to supply, national trade deficit would widen. For that matter he urged the Government to grab the market opportunity by producing highly competitive products.

Meanwhile the Ministry of Cooperatives and UMKM set target for export of small-and-medium business to reach 20% of total export in 2015 to keep imported products from flooding the domestic market especially in consumers' product. Most of the export-orientated products were handicraft products like footwear, leatherwork, and electronic spare parts. Beside handicraft products other products, there were other products being developed based on export stan­dards like food, fruits and vegetables.

The product was expected to compete against same product from China and Thailand which already penetrated the market sooner. However, there were some points to be observed that the products ex­ported could compete against same products of other countries. To step up business capacity UKM play­ers could benefit from the People's Business Cred­it [UKM] and rolling fund to be channeled through LPDB. Syamsuddin rated that chandelling of PLDP was right as NPL as only below 25%, which means there had been fund used for productive purpose. UKM players were also being guided to step up their skill and capacity for better performance. (SS)

Business New - April 16, 2014