INDONESIA'S TRADE EXPO EYES LONG-TERM BUSINESS TIES by Fardah

   Jakarta, Oct 13, 2016 (Antara) - The 31st Trade Expo Indonesia (TEI), the country's largest trade exhibition, held on Oct. 12 to 16, aims to establish business ties that will lead to long-term cooperation, rather than just direct business transactions.

           This year, the expo's theme is "Indonesia: Source of Natural and Creative Products." 
   At the opening alone, the expo recorded business commitments worth Rp2.6 trillion (nearly US$200 million) from 14 countries.

          The ministry had set a business transaction target of $800 million for the expo. In total, it hopes to see service and investment transactions worth some $1 billion during the expo.

         Last year, TEI recorded transactions worth $909 million.

         As many as 1,100 sellers, including SMEs, and 15,562 buyers from 152 countries, are taking part in the expo, where the country's prime products, such as furniture, creative economy items, fishery and agricultural products, and food and beverages, are on display.

       Countries such as China, Nigeria, Malaysia, India, Saudi Arabia, Thailand, the United Arab Emirates, Papua New Guinea, and Bangladesh have sent large delegations to participate in the event.

         The presence of such a large number of foreign buyers could help open up new markets for the export of Indonesian products.

        Penetrating the African and Indian markets, among other things, would be ideal for Indonesian products in the long term.

         "Pay attention to penetrating new markets that we have so far ignored such as India and African countries that have populations of more than 60 million," President Joko Widodo (Jokowi) said at the opening of TEI 2016at the Jakarta International Expo (JI-Expo), Kemayoran area, Jakarta.

          He noted that there are opportunities for Indonesian products to enter African and Indian markets, as well as those in Bangladesh, Iraq, and Latin American countries.

          For that purpose, Trade Minister Enggartiasto Lukita  has encouraged domestic exporters to enter into trade contracts with foreign buyers and explore international markets.  
     "Business relations established (during the expo) are a precious asset. In addition to direct transactions, TEI (can bring in) long-term investment,"  Lukita remarked.

         "We have received courtesy calls from various countries to discuss long-term trade cooperation," he said.    
     In the meantime, SMEs are considered a key asset in boosting the country's exports, so the government is offering assistance to develop them further.   
    Jokowi has lauded the initiative of the trade and creative economy ministry for helping SMEs in various regions by arranging attractive designs and packaging for their products for export.

          Further, Industry Minister Airlangga Hartarto has called on small- and medium-scale industries to improve their capacity and access to funds to explore new markets for export.

        Improved capacity and greater access to funds, equipment and technology will help them explore potential markets in Africa and Latin America, the minister said.

         The minister also urged the country's small- and medium-scale entrepreneurs to be more innovative in production and strategy so that they can explore new export markets.

          While Africa and Latin America both need products such as garments, furniture, pulp and papers, Indonesia could import agricultural items such as beef and soybean from Latin America, Hartarto said.

         The Ministry of Foreign Affairs, which helped promote the expo, has invited 1,200 offshore companies from 72 countries to attend the TEI.

        In Addition to, the ministry also invited 669 companies from the Indonesian non-traditional export markets, including South America, the Middle East, Africa, Central and Eastern Europe, South and Central Asia, Afghanistan, Palestine, and Fiji.

          Aside from attending the TEI, the companies will also participate in a number of meetings to discuss economic issues, coordinated by the Ministry of Foreign Affairs.

           "There will be a number of economy-related trips, including the Economic Field Trip to Bandung; the Indonesia Middle East Update in Gorontalo, North Sulawesi; and the business meeting between Indonesia and Palestine," Foreign Affairs Minister Retno LP Mursadi said.

         The minister is confident that this event will give Indonesia the opportunity to strengthen its economic diplomatic relations with other countries.

          The exhibition space covers 50 thousand square meters and is divided into six zones: manufactured products, furniture goods, home decor, food and beverages, fishery and agricultural products, and creative industries and investment.

         The first day of the TEI 2016 recorded US$178.7 million in total transactions, generated from the Trade Ministry's buying mission program.

         "Transactions have started accumulating during the first day of the expo and are not limited to those generated by the buying mission. Some transactions were made at the expo by those who attended the event and were interested, bringing the total to $200,000," said National Export Directorate General from the Trade Ministry Arlinda.

         Arlinda noted that other than trade contracts being signed between Indonesia and potential international buyers, direct sales has also been made each day.

    (f001/INE  )
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(T.F001/A/BESSR/F. Assegaf) 13-10-2016 12:58:23