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
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