Indonesia lauds success of annual trade expo

Trade Expo Indonesia (TEI), which ended last Sunday, saw total transactions amounting to US$1.82 billion (Bt56.6 billion), consisting of $692.2 million in products, $65.9 million in services and $1.068 billion in investment. The total was up 82 per cent compared with the transaction results of TEI 2012, which stood at $1.0 billion.

The figures were announced by Trade Minister Gita Wirjawan at a press conference on Thursday.

He said many transactions conducted outside the TEI had not yet been recorded, as many buyers visited a number of Indonesian producers to see production processes first-hand.

"If total trade contacts include those still under negotiation, we believe the target of $2 billion is very likely to be reached," he said.

Of the total transactions, those for goods accounted for 37.91 per cent, services 3.61 per cent and investments 58.49 per cent. Investments will come from 14 economies: Japan, Britain, Taiwan, Australia, Russia, India, Egypt, the United Arab Emirates, Nigeria, Thailand, Brazil, South Korea, Hungary and South Africa. Investments will go into mining, manufacturing (tires and glassware), water management, agriculture, commerce, textiles, and medical devices.

The 10 product sectors most popular with buyers during TEI 2013 were agricultural products, furniture, autos and parts, coffee, food and beverages, textiles and textile products, electrical and electronic products, household goods, spices, and paper and paper products.

In the services sector, employment in construction and manufacturing, hospitality, oil and gas, spa therapy, information technology, and nursing and caregiving were the most sought. Demand for these sectors was mostly from South Africa, Australia, Malaysia, Suriname, Lesotho, mainland China, the UAE, Taiwan, Iraq and Chile. This year’s TEI exhibitors numbered 1,511, from large, medium and small companies, not only from Jakarta and its surroundings, but also from other regions in Indonesia. The exhibition was visited by 9,343 buyers from 118 countries.

The largest buyers by country were mainland China, with 11.84 per cent of total transactions. This was followed by Japan with 6.20 per cent, Australia 5.38 per cent, South Africa 4.78 per cent, India 4.68 per cent, South Korea 4.57 per cent, the United States 4.18 per cent, Zimbabwe 3.81 per cent, Malaysia 3.66 per cent, and Saudi Arabia 2.93 per cent.

"The composition of buyers at TEI 2013 was highlighted by non-traditional countries with as much as 77.54 per cent of the transactions," Gita said. "TEI newcomer buyers from Suriname, Papua New Guinea, Yemen, Algeria, Bulgaria and Cameroon also recorded significant transactions, which suggests that the market-diversification policy by the government is developing." The achievements of TEI 2013 are being largely attributed to the active role of Indonesian representatives abroad, as embassies, commercial attaches and the Indonesian Trade Promotion Centre were all active in promoting the expo.

Indonesian exporters and foreign importers from South Africa, Australia, and Japan signed memoranda of understanding for cooperation in the fields of construction, paper products, tea, and natural honey.

Gita affirmed that cooperation in trade, especially for high-quality and value-added products, would be encouraged continuously.

Various events were also conducted during TEI 2013, including the "Trade and Investment Forum", which was attended by more than 700 businesspeople from home and abroad. Additionally, a "Business and Investment Forum" organised by BKPM (Indonesia Investment Coordinating Board) and BKPMD (Indonesian Regional Investment Coordination Board) with foreign business representatives premiered, bringing buyers from 26 countries together with TEI participants.