Indonesia aims to boost exports to Taiwan

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The government is aiming to increase the value of its export to Taiwan to US$10 billion annually, from a current $7 billion, in three years as part of efforts to lower the current-account deficit, according to a government official.

Deputy Trade Minister Bayu Krisnamurthi said Taiwan was a large potential market for Indonesian products.

Last year, Indonesia saw a surplus in its trade with the East Asian island nation.

“Last year, we saw a $2 billion surplus in our trade with Taiwan. This year, up until the next three years, we are looking to further increase our exports to Taiwan,” Bayu told reporters on the sidelines of a seminar on Monday.

Bayu went on to say that by increasing exports to Taiwan the trade surplus with the country could increase to $4 billion in three years’ time.

According to the deputy minister, during his visit to Taiwan last week, the Taiwanese government and local businesspeople requested Indonesia increase exports of several products.

“Their main request from us is to increase exports in furniture, mainly pieces made of solid wood; Indonesian specialty coffee; lifestyle products, such as home decor and fashion products; and consumer products such as instant noodles, chili sauce and soy sauce,” he said.

According to Bayu, Taiwan had one of Asia’s largest per capita gross national incomes (GNI) based on purchasing power parity (PPP), higher than several other developed Asian countries such as South Korea and Japan.

“Taiwan’s GNI per capita at PPP is about $39,000 to $40,000. Also, there are about 220,000 Indonesian nationals in Taiwan who are either migrant workers or students,” he said.

“This is why we have decided to make Taiwan one of our main focuses this year. Taiwan is a friendly and safe market with high purchasing power.”

Aside from increasing exports, Bayu said that several Taiwanese companies had expressed interest in investing in Indonesia.

He declined to give specifics, saying only that discussions were still underway.

Based on data provided by the Central Statistics Agency (BPS), Indonesian non-oil and gas exports to Taiwan in 2013 were $3.73 billion.

Meanwhile, Taiwan’s realized investment in Indonesia as of 2012 according to the Investment Coordinating Board (BKPM) reached up to $646.9 million.

Last year, Indonesia’s economy was troubled by a swelling current-account deficit, which reached 4.4 percent of the country’s gross domestic product (GDP) in the second quarter as a result of rising imports and slowing global demand.

Since then, the country has been working to narrow the current-account deficit through trade policy, increased interest rates and new sources of investment.

In February, the country’s efforts seemed to have paid off as it recorded a surprise trade surplus of $785.3 million, which helped cut the overall deficit in the first two months of the year to $354.7 million.

 

 

 

 

Source : The Jakarta Post | April 22, 2014

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Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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