JAKARTA (TheInsiderStories) – Indonesian Government is pushing for a scheme to develop exports to Africa, South Asia and the Middle East by providing financing facilities. Funds allocated amounted to Rp1.6 trillion (US$114.28 million), said director general of National Export Development Arlinda in Jakarta, on Friday (02/01).
The facilities, she explained, is in the form of financing, guarantees and insurance for the export of goods and services as long as they fulfill domestic contributions. With this facility, it is expected to further improve Indonesia’ export performance in the future.
Arlinda said that Africa, South Asia and the Middle East are potential markets for Indonesian products. The total trade value between Indonesia and Africa in the January to November 2018 period was US$10.38 billion, up 30.15 percent compared to the same period the previous year.
While Indonesia’ total trade value with the countries of South Asia in the same period worth of $22.28 billion, an increase of 7.04 percent compared to the same period the previous year. With the Middle East in the same period and year reaching $12.63 billion, rose 16.61 percent compared to the same period in 2017.
She revealed, support for financing facilities is needed by export-oriented business actors, especially in terms of fulfilling raw materials from suppliers, promotion and marketing, as well as the ease of obtaining access to easier export financing and more competitive interest.
“This facility is expected to increase the competitiveness and added value of Indonesian products, support the growth of the domestic industry, as well as increase and develop long-term exports to Africa, South Asia and the Middle East,” said Arlinda.
Exporters who can utilize this facility are all business entities, both in the form of legal entities or not in the form of legal entities, including individuals who carry out export activities.
Meanwhile, Director of Export Development Cooperation, Marolop Nainggolan, said that business people who are interested in utilizing these financing facilities can go through the Indonesian Export Financing Institution and NED. In addition to export financing facilities, he added, the support provided includes export training, information on export market opportunities, and product design development.
“This is intended to improve export performance and build an Indonesian brand image into non-traditional markets,” he stated.
Earlier, the Head of the Investment Coordinating Board Thomas Lembong revealed the pressure of global trade, especially trade war, affected investment in developing countries, including Indonesia. Investors tend to hold back even to withdraw their investment.
Therefore, Indonesia needs expansion in countries that have potential as partners in exports and investment. Lembong explained, potential countries for export purposes and added investment to the country, among others, Bangladesh and Sri Lanka.
In line with that, the government is also studying Indonesian commodities that have potential exports to these countries, one of which is palm oil. Furthermore, he said, Indonesia’ textile, wood and pulp products also had the opportunity to penetrate the African, South Asian and Middle Eastern markets.
Written by Lexy Nantu, Email: firstname.lastname@example.org