Can't find what you're looking for?
View all search resultsCan't find what you're looking for?
View all search resultsIn cooperation with the Indonesian Employers Association (Apindo), the Indonesian Chinese Entrepreneurs Community (Permit), the Indonesian Chamber of Commerce and Industry: China Committee (KIKT) and the Indonesian Business Association of Shanghai (IBAS), the Centre for Strategic and International Studies (CSIS) organized a visit of a 50-member SMEs group to Shanghai and Nanjing from July 26 to 30, with a view to exploring possible ways of cooperation
n cooperation with the Indonesian Employers Association (Apindo), the Indonesian Chinese Entrepreneurs Community (Permit), the Indonesian Chamber of Commerce and Industry: China Committee (KIKT) and the Indonesian Business Association of Shanghai (IBAS), the Centre for Strategic and International Studies (CSIS) organized a visit of a 50-member SMEs group to Shanghai and Nanjing from July 26 to 30, with a view to exploring possible ways of cooperation.
This visit was one of the programs to commemorate the 60th anniversary of Indonesian-Chinese diplomatic relations.
The ASEAN-China Free Trade Area (ACFTA) will only be fruitful if there is a win-win situation where both sides will benefit. As I see it, the most important instrument to reach that goal is to empower Indonesian SMEs, which are instrumental in our efforts to create equity in our economic developments.
If growth is the goal of big companies, equity is mainly the goal of the SMEs.
As a first attempt to create the opportunity for the SMEs of Indonesia and China to meet, the visit was considered a success. The three sectors represented in the Indonesian group — namely garments, handicrafts and food and beverages — met with their counterparts from China, both in Shanghai and Nanjing. The most successful encounters were in Shanghai where the Indonesian SMEs not only managed to introduce themselves and their products, but some even found prospective buyers. One of the most interesting features of the Indonesian group was that two-thirds of its members were women.
From the cordial contacts between the two groups of SMEs, however, there are some obstacles that need further efforts to overcome. The main obstacle is size, because the Chinese SMEs are much bigger and are substantially supported by the government. Hence, when they are interested in some of our SMEs products, their demands in quantity are also high.
A case in point is an exporter of coconut shell coal who received an order for two million tons, but her average annual export was only 6,000 tons. This case should give us food for thought. Either our SMEs have to get bigger or the government and our big companies should support and assist them, like Apindo and Permit are doing now. As a matter of fact, our SMEs were selected and trained by Apindo with the help of the Norwegian and Dutch Embassies, as well as several international organizations.
Another obstacle is language, which can constitute a serious barrier not only in communication, but also in all printed materials such as directories, labeling and product descriptions on packaging. Here, Apindo and KIKT have been called on for assistance. In addition to tackling the language problem, they should also be able to provide information on China’s rules and regulations, customs and traditions, and matchmaking for companies from both sides.
Apindo, Permit and KIKT deserve to be applauded for their pioneering efforts to send the Indonesian SMEs to Shanghai and Nanjing, opening up great opportunities for them to see some developments in China, and to meet with and learn from their Chinese counterparts. Hopefully their experiences will give them the impetus to do more and to be more. On the Chinese side, they should also appreciate the role of those three intermediary organizations in promoting the Indonesia-China trade and investments.
In Indonesia-China trade, the balance is more in China’s favor because of the restructuring of its economy, and some real efforts have to be made to return its balance to even. Here, SMEs have a role to play beyond the government, which has to invest more in infrastructure and labor intensive manufacturing, and not only in the extractive fields such as coal, minerals and palm oil. The exchanges between SMEs therefore have to be continued and expanded in other sectors and in other cities, both in China and in Indonesia.
During the visit, the Indonesian SMEs group also had an opportunity to visit the Shanghai Expo. The Indonesian Pavilion is a very beautiful introduction to Indonesia’s history, art and culture. On display are exquisite pieces of weaving, batik and songket, kris, wood-carvings and a campaign for Komodo island to be recognized as one of the Seven Natural Wonders of the World. The architecture of the building is also beautiful, original and functional, with an open concept for the hot climate.
However, the pavilion does not project the image of Indonesia’s present and future. There are no demonstrations of high tech products, no advanced industries and no future image or projection of present-day Indonesia.
What is also lacking is a portrayal of the diversity of ethnic groups, religions and cultures that make up a plural Indonesia. With more than 80 percent of its population of Muslim faith, Indonesia’s Islam is the best example of a tolerant religion that augurs well for the unity of the nation and for maintaining a plural society. Maybe it is not too late to add photos and figures or a videorama to the pavilion in the last three months of the Expo.
In the absence of an Indonesian Consulate General in Shanghai, the Indonesian Business Association of Shanghai (IBAS) under the leadership of Adi Harsono has, in modest but useful ways, played an important role in serving Indonesia’s interests in business, social, culture, arts and cuisine. With the exception of official matters such as issuing visas, IBAS in reality is a combination of a little bit of a consulate general and a chamber of commerce.
The success of the Indonesian SMEs’ visit to Shanghai was attributed to the good offices of IBAS and its able personnel.
The writer is the vice chairman of the CSIS foundation’s board of trustees.
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.
Quickly share this news with your network—keep everyone informed with just a single click!
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Get the best experience—faster access, exclusive features, and a seamless way to stay updated.