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Govt aims to boost SME exports to African countries
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Indonesian Foreign Minister Retno LP Marsudi (left) hands an official invitation for the upcoming Indian Ocean Rim Association (IORA) Leaders' Summit to South African President Jacob Zuma (center) in Cape Town, South Africa, on Monday. (Foreign Affairs Ministry/file)
T
he Trade Ministry is looking to diversify its export market to African countries to reach the targeted 5.6 percent increase in non-oil and gas exports to US$138.7 billion in 2017.
These export destinations are deemed suitable for small and medium enterprises (SMEs) to tap as they are still in the early stages of industrialization, despite their rich natural resources.
“Almost all the products used in Africa are imported. And, the standards it sets are not as high as in Europe or the United States,” Ari Satria, the Trade Ministry’s secretary-general for export development, said on Thursday.
Thus, the government is planning to form free trade agreements (FTAs) with South Africa, Kenya, Nigeria and Mozambique this year.
“One of the challenges is that for our goods to enter African markets, we have to pay tariffs ranging between 30 to 40 percent,” Ari said.
President Joko “Jokowi” Widodo said previously that Indonesia needed to look into other export markets aside from the top five countries, namely the US, China, Japan, India and Singapore. (ags)
