A total of 32 Indonesian companies displayed various products and services, such as food and beverage as well as health products, bird nests, palm oil and derivatives, biodiesel, furniture, paper, recycled plastic seeds, investment potential, and tour and travel services.
The Ministry of Commerce deemed it important to participate in the exhibition, in which over 130 exhibitor countries participated and which drew over 150 thousand visitors, as ample knowledge was disseminated on the potential of Indonesian products and services.
The question arises as to the reason behind Indonesia participating in the CIIE exhibition even though China has become Indonesia`s main non-oil and gas export destination to outperform non-oil and gas exports to the United States, Japan, and European countries.
Data from the Central Statistics Agency indicates that Indonesia`s non-oil and gas exports to China continued to rise, from US$13.26 billion in 2015 to $15.12 billion in 2016, and rose to $21.35 billion in 2017.
Indonesia`s non-oil and gas imports from China also tended to increase, from $29.22 billion in 2015 to $30.69 billion in 2016, and to $25.05 billion in 2017.
When viewed from the aspect of trade balance, Indonesia has, in the last three years from 2015 to 2017, always experienced a deficit of $15.96 billion in 2015, $15.57 billion in 2016, and $14.16 billion in 2017.
In the first nine months of 2018 from January to September, Indonesia`s non-oil and gas exports to China had amounted to $18.52 billion, up from $14.60 billion in the same period of the previous year.
Likewise, non-oil and gas imports from the United States also rose to $32.48 billion, from $25.05 billion. Thus, in the first nine months of 2018, Indonesia had experienced a deficit of $13.96 billion.
Minister of Commerce Engartiasto Lukita stated that this was an opportunity for Indonesia to increase exports to China after Chinese President Xi Jinping vowed to reform his country`s economy.
The minister`s aspiration was voiced after he heard President Xi express keenness to reform the economy, simplify trade licensing, and guarantee investment. President Xi made the statement while opening CIIE 2018.
The minister of trade noted that China`s commitment to opening up the market for imported products was also conveyed by President Xi, who will pay greater attention to issues of intellectual property rights, which had often been questioned by several countries, including Indonesia.
For Indonesia, the existence of CIIE must be fully utilized, so that China and other countries are aware of the potential of Indonesian products that are ready to enter the export market.
Indonesia must be involved and must seize this opportunity, especially as it is ready to export to China and other countries.
If Indonesia is not involved in knowing China and other countries, the potential of Indonesian products would remain untapped. Hence, Indonesia`s participation in CIIE is strategic and important.
Quoting President Joko Widodo`s statement that Indonesia must open itself up in the trade sector and open new markets, Indonesia`s participation in the CIIE was in line with Xi`s statement that was also increasingly open to imported products, including from Indonesia.
Ministry of Trade`s Director General of National Export Development Arlinda noted that Indonesia will continue to look for the slightest loopholes in promoting various export products by participating in international trade fairs spread across various countries.
"We will not stop promotion in one country but will continue to look for opportunities, so that Indonesian products will become more well-known, which in turn will increase non-oil and gas foreign exchange," Arlinda stated.
The Ministry of Commerce, while inviting or organizing trade shows, seeks to find potential countries but have not been optimally exploited so far.
He cited as an example Indonesia`s recent participation in trade shows in New Zealand and Bangladesh, and it turned out that entrepreneurs in both countries were positive in conducting trade transactions.
In New Zealand, for instance, although developed countries had not focused much on promotion there, they could record transactions worth $9 million some time ago while participating in the exhibition.
Likewise in Bangladesh, several Indonesian products -- buses, railroad cars, and spices -- promoted have trade contracts amounting to $279.19 million.
Speaking in connection with the participation in the 2018 CIIE held for the first time, Arlinda views it as an opportunity for Indonesia to increase exports to that country.
Bird`s nest in demand
During the CIIE, one of the Indonesian commodities that Chinese entrepreneurs took notice of was bird`s nest, considering that several quality and health requirements were taken into account, so they were deemed safe for consumption.
At the Export Forum, which is a follow-up agenda for CIIE, Indonesian and Chinese bird`s nest entrepreneurs have successfully signed a 20-ton business contract worth $44 million for sales from November 2018 to November 2019.
Chairman of the Indonesian Bird Nest Entrepreneurs Association Boedi Mranata admitted to the difficulties in supplying bird`s nests to China, since in 2010-2011, the entry of Indonesian bird`s nests was banned following the spread of bird flu.
It was said that the Indonesian bird nest industry was originally a home-based business, which during that time had not paid much attention to hygiene and could not be exported directly to China but still through a third country.
However, with the increasing demand for bird`s nests to China, the Ministry of Trade considers the need for clear rules, especially in terms of quality.
Not only the Ministry of Commerce, but the Quarantine Agency is also involved in encouraging health and hygiene of the products ready for export.
Currently, 21 bird nest companies in Indonesia have export rights, with 1,105 tons of annual production. The association continues to encourage the number of exporters to increase, so that it can meet the export demand.
T. E002/INE
Reporter: Eliswan Azly
Editor: Andi Abdussalam
Copyright © ANTARA 2018
