"We have to target non-traditional countries. This is very suitable for MSMEs," Trade Minister Zulkifli Hasan stated at the Legendary Brand Festival event here on Saturday.
Hasan explained that exports in American and European countries are currently slowing down due to the geopolitical conditions and the threat of global recession.
Nevertheless, non-traditional countries, such as those in the South Asian region, like Bangladesh, Pakistan, and India, have huge trade potential for business players in Indonesia.
The minister explained that Indonesia had recorded a surplus in trade transactions with Bangladesh of US$2 billion, a US$3-billion surplus with Pakistan, and a US$9-billion surplus with India.
Apart from South Asian countries, African and Middle Eastern countries also have the potential to become trade partners.
Hasan remarked that the total population of those non-traditional countries reached almost 3.5 billion, thereby opening up vast opportunities for Indonesia's local products.
"The purchasing power there is high. It is quite a big loss if business players from Indonesia do not make the most of it," he emphasized.
He further noted that in general, those non-traditional countries do not apply tough conditions to be fulfilled in terms of trade agreements, akin to what is usually followed by countries in the US or Europe.
For instance, countries in South Asia do not demand to conduct goods export transactions to Indonesia despite their countries importing goods from Indonesia.
Hasan noted that his ministry also supports opening export access to those countries to keep the logistics costs low.
The effort is made through trade cooperation with several countries that serve as hubs for export goods that will then be forwarded to destination countries.
"(For export) to the Middle East, it can be carried out via the United Arab Emirates and then possibly to South Asia or Africa," he remarked.
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Translator: Adimas Raditya, Raka Adji
Editor: Azis Kurmala
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