The Trade Ministry and the Indonesian Employers Association (Apindo) have agreed to work together to boost exports and strengthen the domestic market by mapping out obstacles to the countryâs trade
he Trade Ministry and the Indonesian Employers Association (Apindo) have agreed to work together to boost exports and strengthen the domestic market by mapping out obstacles to the country's trade.
Speaking during the signing of a cooperation agreement on Monday, Trade Minister Rachmat Gobel said the ministry and the business lobby group would team up to identify issues hampering export potentials within one month.
The ministry has set an ambitious goal of pushing up exports three-fold to US$468 billion by 2019, a tough job considering the weak demand from overseas amid a global economic downturn in recent years.
'We must act quickly to respond to the market. Only in that way can we still thrive in the current worldwide slowdown,' Rachmat said, adding that being pro-active would be the best way to tap available potentials.
He said the government would follow up any information on trade potentials in specific markets gathered by overseas trade representatives through marketing intelligence.
Aside from the global slowdown, Indonesia also faces the problem of low international reception as most of its merchandise sold overseas only grabs a tiny share of the global market.
Shipments of handicrafts, for instance, only amounted to less than $700 million last year, taking only 2 percent to 3 percent of the world market.
Furniture exports from the country, which totaled $1.7 billion, were outpaced by ones from Vietnam, which amounted to $5.1 billion, the statistics from the ministry reveal.
High-cost logistics, poor infrastructure and lack of export financing are among the major bottlenecks that have long hindered manufacturers and exporters from expanding their reach.
Currently, exports are still less significant to spur growth in Indonesia compared to domestic consumption and direct investment, which are the top drivers of economic expansion.
Another concern to address is the building up of the capacity of small and medium enterprises to increase their competitive edge over tighter competition from foreign goods, particularly from regional peers in Southeast Asia, according to Rachmat.
The challenge is getting closer as the 10 members of the ASEAN are on their way to embrace a single market early next year.
As of last year, Indonesia had constantly recorded a deficit of nearly $1 billion in the non-oil and gas trade with its neighbors, excluding the Philippines, Cambodia and Myanmar.
'The nearest challenge is to increase our [export] role at least within ASEAN. This is our homework and with the quite low deficit we must be able to post a surplus as soon as this year,' said Apindo chairman Hariyadi Sukamdani.
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