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Indonesia to divert exports to new markets amid languid global demand
The Indonesian Trade Ministry has announced to refocus export of goods to non-traditional markets in a bid to offset the risk of reduced demand from major trade partners.
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Belawan’s domestic container terminal general manager Indra Pamulihan (third left) talks with state port operator Pelindo I vice president of public relations Fiona Sari Utami (third right) during the welcoming of two ship-to-shore (S2S) cranes at the Belawan port dock in North Sumatra. (The Jakarta Post/Apriadi Gunawan)
T
he Trade Ministry has announced that it will refocus on the export of goods to nontraditional markets in a bid to offset the risk of reduced demand from major trade partners.
In a keynote speech to open the annual Indonesian Trade Expo, Trade Minister Zulkifli Hasan stated that the government would increase export volume to several regions, including Africa, South Asia, Central Asia and the Middle East.
Statistics Indonesia (BPS) data show that from the top 10 export destination countries in September, only India came from these regions, while the rest came from North America, East Asia, Europe and Southeast Asia.
“We could even explore [export possibilities in] Eastern Europe, and if we want to take things further, to Latin America,” Zulkifli told expo participants on Wednesday.
The need to refocus on nontraditional export markets stems from the risk of a global economic slowdown, as diversifying means less exposure to economic turbulence in destination countries.
The African continent's and Indian subcontinent's huge populations are a must target for exports. In both markets he estimates total populations of around 1 billion and 1.5 billion people, respectively, meaning a big pool of consumers to purchase clothes and food.
The government will also find opportunities to deliver more goods to the Middle East, and in particular Saudi Arabia.
