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Empowering West Sumatra: LPEI-government partnership fuels global trade
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acked by its rich cultural legacy, the province of West Sumatra has great export potential, with products such as the much-beloved rendang, as well as varied crafts, fashion and spices, providing multiple opportunities for West Sumatra export-oriented firms.
According to Statistics Indonesia (BPS), West Sumatra exported US$193.53 million worth of goods in the January to October 2023 period, with crude palm oil (CPO), chemical goods and rubber among the most important exports. In the second quarter of 2023, Pakistan remained the top export destination for West Sumatra, with a share of 34.53 percent, followed by India and Bangladesh, with 31.80 percent and 9.71 percent respectively.
As part of a combined effort to drive greater export growth from West Sumatra, the Indonesian Export Financing Agency (LPEI) or Indonesia Eximbank and the West Sumatra provincial administration have entered into a memorandum of understanding (MoU) to collaborate on capacity development for small and medium industries (SMEs), cooperatives, village-owned enterprises (BUMDs), the village-owned enterprises development agency (BUMDESMA) and export-oriented SMEs in West Sumatra.
"I hope the implementation of this MoU can proceed swiftly because this collaboration will enhance West Sumatra's product exports abroad, thereby strengthening the local economy," said West Sumatra Governor Mahyeldi Ansharullah.
The Finance Ministry, through the head of the West Sumatra office of the Directorate General of the Treasury, Syukriah HG, also affirmed its commitment to supporting economic growth in the region. The MoU between LPEI and the West Sumatra provincial government aims to empower export-ready SMEs.
"Our collective dream is not just to make one nagari [village] exporter in West Sumatra, but many nagari, turning into cities and districts, contributing to export earnings in West Sumatra. Inshallah [God willing], it is possible," said Syukriah.
Chesna F. Anwar, executive director of Institutional Relations at LPEI, highlighted West Sumatra's significant potential for the export market. For instance, rendang has been recognized as one of the most delicious foods globally, exemplified through a satellite kitchen in Bulgaria that needs to produce 30 tons of rendang each month for distribution to various European countries.
LPEI will provide support to exporters in West Sumatra through the Coaching Program for New Exporters (CPNE), the Desa Devisa Program for the sustainable development of export and export income through village flagship commodities and the Marketing Handholding program to help businesses in West Sumatra access export markets.
"Certainly, supporting export-oriented businesses in West Sumatra cannot be done by LPEI alone. It requires excellent collaboration among all parties to build the foundation for export development programs to transform Desa Devisa in West Sumatra and successfully lift up the local economy," she said.
