President Joko Widodo Accompany by CMEA Darmin Nasution and Trade Minister Enggartiasto Lukita at the Opening TEI 2018 on Oct. 24 - Photo by President Office

TANGERANG (TheInsiderStories)Trade Expo Indonesia (TEI) booked value transaction Rp126.77 trillion (US$8.5 billion) during the five days event, said one senior official. Previously the trade ministry targeting around 68 trade agreements valued $5.19 billion will be signed during the exhibition.

“The achievement of TEI 2018 is a positive indication from the buyers on Indonesian products amid global economic uncertainty,” expressed by the Minister of Trade Enggartiasto Lukita at the closing ceremony of TEI in Tangerang, on Sunday (28/10).

He explained, the total transaction value consists of investment transactions of $5.55 billion, tourism $170.5 million, and products $2.73 billion.

Lukita revealed, the products that were in great demand from buyers were information and technology, processed foods, chemical products, crude palm oil, fishery products, as well as paper and paper products. Meanwhile, the highest transaction come from Saudi Arabia, Japan, Britain, Egypt and the United States.

“The achievement of TEI 2018 is a positive indication from the buyers of Indonesian products at amidst global economic uncertainty, “said the minister.

Director general for export Arlinda added, during the TEI 2018 event, 78 MoUs had been signed with importers from 30 countries, with Chinese importers valued at $4.50 billion in the form of investment in information technology development in the Belitung Special Economic Zone and Thailand $243.16 million related to the development of the plantation industry. Meanwhile, the MoU in the trade sector reached a value of $811.08 million.

At the opening of TEI on Oct. 24, President Joko Widodo has complained the Indonesia’s Current account deficit (CAD) is charged responsible for Rupiah exchange rate slump. He highlighted the years-swelling of current account deficit due to the slow growth of export revenues.
In 2017, Indonesia has $17.3 billion of CAD and in the third quarter (3Q) of this year has reached $13.75 billion. Export value until September just increased by 9.2 percent worth of $134.9 billion while import rose 14.18 percent to $16.84 billion.

Lukita is optimistic that Indonesian export growth throughout 2018 could reach 11 percent compared to 2017. He said, to boost export, Indonesian government targeted to finalized 13 bilateral trade negotiations next year.

“I am sure this year can be up to 11 percent, in the midst of an uncertain global atmosphere,” he said.

Meanwhile, Bank Indonesia believed by the end of this year the CAD could lowered to 2.5 percent of GDP with the series of policies that were designed by the government to put a brake on import growth and to encourage the country’s export.
To boost Indonesian export Widodo attempt the exporter to enter unusual market countries. He suggested exporters to widen its export to unsaturated market countries such as South Asia and Africa.
Besides, he also recognized the potency of ASEAN market as well. Widodo also wished Indonesia to use United States-China trade war as an opportunity, by entering the market left by the trading countries.
Furthermore, he said, to increasing the competitiveness, Indonesia must innovate its products and expand promotion by attending exhibition and advertise online. Especially, the technology grows in fast-paced and Indonesia must follow to not be left out.
An international TEI held in Tangerang from Oct. 24th to 28th. More than a thousand Indonesian companies participated in the exhibition.
Written by Staff Editor, Email: theinsiderstories@gmail.com

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