New overseas markets for RI can replace falling exports

Abdul Khalik, The Jakarta Post, Jakarta   

While Indonesian exports to traditional markets like the United States, Europe and Japan show some signs of slowing down due to the global financial crisis, buyers from other countries representing potential new non-traditional markets have expressed interest in buying more Indonesian goods. 

Businesspeople from several countries in the region have also expressed willingness to put their money into Indonesia. 

Barry Helberg of the New Zealand Retailers Association and David J. Catty, the director of the ASEAN (Association of Southeast Asian Nations) and New Zealand Combined Business Council, expressed their amazement during a discussion at the recent 23rd Jakarta International Trade Exhibition, on the quality and design of Indonesian furniture. 

"These are top quality goods. It is the kind of furniture New Zealand top end consumers are looking for," Catty said. 

Barry, meanwhile, expressed his optimism that Indonesia's furniture, footwear and apparel products would be accepted by his country's consumers. 

"You see, New Zealanders, who have money to spend, are placing increased emphasis on quality and durability. I think Indonesian products still have potential to penetrate New Zealand markets," he said. 

Total two-way trade between Indonesia and New Zealand currently reached US$2 billion, the Indonesian Ambassador to New Zealand Amris Hassan said. 

New Zealand's furniture, apparel and footwear markets, worth a total of $1.4 billion, were dominated by China and Vietnam. Indonesia's total exports to New Zealand for the three sectors was only $30 million last year, he said. 

"How can we lose to Vietnam?. I think we can no longer view New Zealand markets as a leftover from Australia's. That's why we have proposed that we should have our own trade office in Auckland to increase our exports. I will do my utmost to help our businesspeople willing to export their products to the country," he said. 

Meanwhile, President Susilo Bambang Yudhoyono's special envoy to the Middle East Alwi Shihab said that there was a surplus of $1.6 trillion among the Middle Eastern countries. Indonesia could look to these countries as markets for its products and also seek to attract investment funds. 

He said that some investors from the Middle East, including the Emar Group and the Capital Investment Group, have now entered Indonesia to set up businesses. 

Alwi said that Emar was ready to build tourism sites worth up to $1 billion in Lombok, West Nusa Tenggara while investors from Oman would sign an MOU worth $400 million on a joint investment in an oil and gas field with an Indonesian business group. 

In addition, Capital Investment Group from the United Arab Emirates just launched its branch office in Jakarta, ready to invest in real estate, sea ports and other infrastructure sectors, he said. 

Alwi, however, criticized the country's bureaucrats who have held up permit processes for foreign investment, pointing to the example of a two-year delay in negotiations between investors from Qatar and Bahrain with a local state-owned company. 

Rector of Paramadina University Anies Baswedan said that the crisis had provided momentum for Indonesia to look to alternative markets and sources of investment in Asia and the Middle East to reduce dependence on Western countries and to lessen the negative impact of the financial crisis on Indonesia.