President Jokowi: Indonesia’s Export Market Still Has Large Potential
Date 4 Desember 2020
Amid the current sluggish global economy, President Joko “Jokowi” Widodo expressed belief that wide export opportunities are open for Indonesian products.
“We have to look more closely at the export market opportunities that are still wide open in countries that are also currently experiencing a pandemic,” President Jokowi said at the Bogor Presidential Palace, West Java, Friday (4/12).
The President said that Indonesia’s export potential is still open, both in terms of the diversity of commodity products, creativity, and quality, as well as the volume and destination of export countries. “Our potential is still enormous. The key is to be proactive and not passive,” he said.
The President expressed his joy over Indonesia’s export performance for the January-October 2020 period which experienced a surplus of US$17.07 billion. However, he reminded related parties not to be complacent due to the achievement. He added that the untapped potential for the export market is still exceedingly large.
The President said that when compared to other countries, Indonesia is still lagging behind in capturing export opportunities. He also conveyed a number of facts about Indonesia’s export performance.
“I take the example from coffee exports. In 2019, Indonesia was the fourth largest coffee producer in the world after Brazil, Vietnam and Colombia. However, Indonesia is listed as the 8th largest coffee exporter in the world,” the President said.
The export performance is still behind the likes of Brazil, Switzerland, Germany, Colombia, and even Vietnam. “The portrait of Indonesia’s coffee export performance is still behind Vietnam, which in 2019 reached US$2.22 billion. Meanwhile, Indonesia’s coffee export performances in 2019 stood at US$883.12 million,” he said.
Furthermore, the President also listed other instances where Indonesia is still lagging behind in terms of exports such as in garments, home decor, furniture, and fishery products.
“There is no other way for us other than to take corrective steps, reform steps. We need major reform of the business ecosystem for our exporters,” he said.
President Jokowi also instructed that various problems that hinder export performances should be resolved one by one.
“Complicated regulations, I have stated this frequently, simplify them as soon as possible. Cut the red tape of bureaucratic procedures,” he stated.
The President reminded the need to accelerate the negotiation of the Comprehensive Economic Partnership Agreement (CEPA), especially with potential countries.
The various existing trade agreements must also be optimized while continuing to seek new markets in non-traditional countries.
“The Trade Attaché and the Indonesian Trade Promotion Center (ITPC) must be able to become market agents, perform market intelligence,” the President said.
The competitiveness of exporters, especially SMEs, the President went on to say, must also be improved. “Collaborate with SMEs throughout Indonesia to form a strong unit in order to fulfill buyer orders,” he said.
The President also emphasized the importance of strengthening cooperation with banks and the Indonesian Export Financing Agency (LPEI) to finance export-oriented SMEs.
“We have to fulfill what has become the global market standard, a strong brand with better packaging. This will increase our exports,” the President said. (FID/UN)(FI/MMB)