News Focus: Indonesia’s interest in participating in a trade exhibition in China by eliswa

Jakarta (ANTARA News) – Indonesia recently concluded its participation in the world’s largest import fair “The 1st China International Import Expo” (CIIE) in Shanghai, China from November 5-10, 2018.

A total of 32 Indonesian companies presented various products and services, such as food and drink as well as health products, bird nests, palm oil and its derivatives, biodiesel, furniture, paper, recycled plastic seeds, investment potential, and sightseeing and travel services.

The Ministry of Commerce considered it important to participate in the exhibition, which was attended by more than 130 exhibiting countries and which attracted more than 150,000 visitors, as a lot of knowledge was disseminated about the potential of Indonesian products and services.

The question arises as to why Indonesia took part in the CIIE exhibition, even though China has become the main destination for Indonesian non-oil and gas exports to surpass non-oil and gas exports to the United States, Japan and European countries.

Data from the Central Statistics Agency indicates that Indonesian non-oil and gas exports to China continued to increase, from US $ 13.26 billion in 2015 to US $ 15.12 billion in 2016, and are increased to $ 21.35 billion in 2017.

Indonesian non-oil and gas imports from China have also tended to increase, from $ 29.22 billion in 2015 to $ 30.69 billion in 2016 and to $ 25.05 billion in 2017.

From the point of view of the trade balance, Indonesia has, during the last three years from 2015 to 2017, always experienced a deficit of 15.96 billion dollars in 2015, 15.57 billion dollars in 2016 and 14, $ 16 billion in 2017.

In the first nine months of 2018, January through September, Indonesia’s non-oil and gas exports to China were $ 18.52 billion, compared to $ 14.60 billion in the same time of year. former.

Likewise, non-oil and gas imports from the United States also increased to $ 32.48 billion, from $ 25.05 billion. Thus, in the first nine months of 2018, Indonesia experienced a deficit of $ 13.96 billion.

Trade Minister Engartiasto Lukita said this was an opportunity for Indonesia to increase exports to China after Chinese President Xi Jinping pledged to reform the economy of his country.

The minister’s aspiration was expressed after hearing President Xi express his desire to reform the economy, simplify business licensing and secure investment. President Xi made the statement during the opening of CIIE 2018.

The trade minister noted that China’s commitment to open up the market for imported products has also been conveyed by President Xi, who will pay more attention to intellectual property rights issues, which have often been questioned. by several countries, including Indonesia.

For Indonesia, the existence of the CIIE must be fully exploited, so that China and other countries are aware of the potential of Indonesian products ready to enter the export market.

Indonesia must be involved and must seize this opportunity, especially since it is ready to export to China and other countries.

If Indonesia is not involved in the knowledge of China and other countries, the potential of Indonesian products would remain untapped. Therefore, Indonesia’s participation in the CIIE is strategic and important.

Citing President Joko Widodo’s statement that Indonesia must open up in the commercial sector and open up new markets, Indonesia’s participation in the CIIE was in line with Xi’s statement which was also increasingly open. imported products, including from Indonesia.

The Director General of National Export Development of the Ministry of Commerce, Arlinda, noted that Indonesia will continue to seek the smallest gaps in the promotion of various export products by participating in international trade fairs spread across various countries.

“We will not stop the promotion in a country but will continue to look for opportunities, so that Indonesian products become more famous, which in turn will increase non-oil and gas foreign exchange,” Arlinda said.

The Ministry of Commerce, while inviting or organizing trade shows, seeks to find potential countries but has not been optimally exploited so far.

He cited as an example Indonesia’s recent participation in trade shows in New Zealand and Bangladesh, and entrepreneurs from both countries were found to be positive in conducting business transactions.

In New Zealand, for example, although developed countries weren’t very focused on promoting there, they could register transactions worth $ 9 million some time ago while participating in the event. ‘exposure.

Likewise in Bangladesh, several Indonesian products – buses, wagons and spices – promoted have commercial contracts amounting to $ 279.19 million.

Speaking as part of the participation in the CIIE 2018 organized for the first time, Arlinda sees it as an opportunity for Indonesia to increase its exports to this country.

Wanted bird’s nest

During the CIIE, one of the Indonesian products that Chinese entrepreneurs noticed was the bird’s nest, considering that several quality and health requirements were taken into account, so they were considered safe for consumption.

At the Export Forum, which is a follow-up program for the CIIE, Indonesian and Chinese bird nest entrepreneurs successfully signed a 20-ton trade contract worth $ 44 million for sales of November 2018 to November 2019.

The president of the Indonesian Bird Nest Entrepreneurs Association, Boedi Mranata, admitted the difficulties of supplying bird nests from China, because in 2010-2011, the entry of Indonesian bird nests has been banned due to the spread of bird flu.

It has been said that the Indonesian bird nest industry was originally a home based business which during this period did not pay much attention to hygiene and could not be exported directly to China but always via a third country.

However, with the growing demand for bird nests in China, the Ministry of Commerce considers the need for clear rules, especially in terms of quality.

Not only the Ministry of Commerce, but the Quarantine Agency are also involved in promoting the health and hygiene of products ready for export.

Currently, 21 bird nest companies in Indonesia have export rights, with an annual output of 1,105 tons. The association continues to encourage the number of exporters to increase, in order to be able to meet the export demand.

T. E002 / INE


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