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SMEs make extra efforts to sell products overseas

A group of about 50 people looked busy with their belongings at Terminal 3 of Soekarno-Hatta International Airport in Tangerang, Banten, last Saturday

Bambang Nurbianto (The Jakarta Post)
Nanning, China
Thu, September 14, 2017

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SMEs make extra efforts to sell products overseas

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group of about 50 people looked busy with their belongings at Terminal 3 of Soekarno-Hatta International Airport in Tangerang, Banten, last Saturday.

They pushed airport carts loaded with large cardboard boxes and other packages to check-in, before boarding their plane to the city of Nanning, Guangxi province, China. They were small and medium entrepreneurs, hoping to sell their products at the annual China-ASEAN Expo (CAExpo), which was opened by Chinese Vice Premier Zhang Gaoli on Tuesday.

Their products included handicrafts, fashions, wooden and stone furniture, herbal medicines and various kinds of food, among many others.

“I have taken part in this expo several times. I still have unsold items here that I took to last year’s event,” Abdullah Bahanan said at his booth at the CAExpo’s Indonesian Pavilion at the Nanning International Convention & Exhibition Center (NICEC).

Abdullah is one of the 52 Indonesian participants in the event, organized for businesspeople, mostly small and medium enterprises (SMEs) from ASEAN.

They are not yet rich businesspeople. Some of them have to share their 6-square-meter booths with their friends to reduce costs. One of the participants said she could only afford to invest Rp 75 million (US$5,678), excluding their transportation and accommodation costs.

“I sell handicrafts here although I am known for my footwear products. My friends told me the market is good here for handicrafts,” said Vera, who shared a booth with her friend.

She said Indonesian participants got free booths last year, but this year each booth cost between Rp 8 million and Rp 12 million.

Siska Husein of the Indonesian Chamber of Commerce and Industry for SME affairs praised the spirit of the entrepreneurs, who were mostly small retailers and only hoped that their goods would be sold out, without expecting follow-up buyers after the event ended on Friday.

“They are small, but courageous. They have to shoulder all expenses here without any assistance from the government. Sometimes, they make nothing from their businesses here,” she said.

Participants told of different experiences from their participation at the event. Unlike Abdullah, for many participants it is their first time at the CAExpo. They said they had got information from their friends that the event promised good profits.

Some of the participants recounted success stories, while others shared less successful tales. Anwar Togar Lautan is an example of a successful SME. He said he had managed to create a market for his herbal products that he claimed could cure various illnesses or simply sustain people’s health.

“My customers don’t only come from Nanning, but also other Chinese cities, including Beijing and Shanghai. They will fly to meet me here,” said Anwar, who has taken part in CAExpo since it was organized for the first time 14 years ago.

But not all participants have such good luck. Abdullah said he took part in this year’s event not because he made money in last year’s event, but because of his unsold wooden furniture.

“I hope I can sell all of it, this year,” said Abdullah, pointing to several items displayed at his exhibition booth.

Another participant from Yogyakarta told a similar story, saying that he had to leave his unsold stone furniture in Nanning because taking it home would be too costly.

The Trade Ministry’s export development director general, Arlinda Imbang Jaya, revealed that the transaction value from last year’s event was about $4 million, a tiny amount compared to the Indonesian trade deficit with China, which was $14 billion, last year.

“Most of them are retailers. Their contribution is small in trying to reduce our trade deficit. But we appreciate their efforts,” she said, adding that Indonesian exports to China last year amounted to $16 billion, while Indonesian imports stood at $30 billion.

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