EXPORT PROMOTION TO BE IN TANDEM WITH PRODUCT CERTIFICATION

The Ministry of Trade was planning to consolidate to meet export target of 300 percent until 2019 by way of playing International product certification. Standardization would include proper labeling, packaging, and good agricultural practice (GAP) and Good Manufacturing Practices (GMP) in the Provinces. The products exported must meet international standard but it did not imply that Indonesian products automatically comply with standardization in export destination countries.

For example in terms of fishery products, Indonesia had adopted the Cognitive Disorders Examination (codex) although Indonesian Products had not fulfilled requirements of the private sector.

Other conclusion was that supply of raw materials, auxiliary materials and energy was most important. Electricity output up to 35,000 megawatt. Electricity was part of infra structure of investor’s concern beside complex bureaucracy in many areas. BP2KP also proposed the need to reform the logistics system, including storage, distribution, terminal handling and shipping.

Export platform would be focused more on manufacturing, reducing primary industry. This was in line with the analysis of BP2KP of the Ministry of Trade. The effort must be more on changing of export platform, i.e. 65% for manufacturing industry. “We are only presenting analysis outcome. It’s manufacturing industry needed by the world”.

The Minister of Trade Rachmat Gobel remained optimistic about meeting target of 300% export increase. The Minister of Trade and the Minister of Foreign Affairs had agreed to step up the role of ITPC and Trade Attache. The ITPC must be able to unmarked intelligence in the country where they were located. BP2KP would simultaneously map out several points related to export penetration. “To be frank, today only export to America increased slightly. To meet the 300% increase target is not easy. We have to grab someone else’s market”

Export should be national target to be jointly pursued by all stake holders: the Government and businessplayers, at home and abroad. The Ministry saw that the effort to increase market share in the world needed favorable trading climate. Space planning, labor And wages system must be developed to promote national productivity. “In CPO export we are synchronizing effort target, but there must be synchronization of the upstream and downstream industry. Export should be national commitment, not just out home work at the Ministry of Trade.”

Indonesia had planned to set up trade attaché in 24 countries, ITPC officials operated in 19 cities of the world. With good approach to Principal Agent we could jack up export of products like automotive and electronics. “We made a visit to Japan to drum up Japanese buyers”.

In automotive sector, the objective was to make Indonesia a production center. “So the hub for automotive industry for Southeast Asia is Indonesia, not Thailand, Malaysia, or Vietnam. There would be fighting over market share”

Approach to principal agent begins with collaboration of ITPC and trade attaché. They would give information about who the Principal was to be approached. This was once done by BP2KP i.e., to conduct a meting with associations.

In the market opportunity there would always be a niche for Indonesia to export, as the market was not saturated yet. He upstream and downstream sectors must be synchronized. A clear example was application of SLVK. “We have certified our wood and we sell the”.

Indonesia’s export depended on demand from buyer countries. For example Indonesia’s export was most potential when China increased import. This was the general rule. Indonesia could learn a lesson from South Korea’s success. South Korea increased their exports by ten fold the period of 1960 – 1970. The strategy adopted by them was setting up trading companies in potential buyer countries. A concept as such was once proposed by KADIN i.e. the Indonesia Incorporated concept. “Support is sought after from all institutions including the Ministry of Industry, agriculture, maritime and fishery. (SS)

Business News - February 6, 2015