MARKET DEVELOPMENT
RI Businesses Urged to Expand to S. Africa
RI Businesses Urged to Expand to S. Africa
26/03/2015 (Jakarta Post) - Indonesian businesspeople should be more aggressive in exploring markets in South Africa in order to compete with its fellow ASEAN member states in attracting tourists and trades from the second-largest economy in Africa, Indonesian Ambassador to South Africa Suprapto Martosetomo has said.
According to data released by the Indonesian Embassy in Pretoria, Indonesia currently stands as South Africa’s fifth-largest trading partner in ASEAN, below Thailand, Singapore, Malaysia and Vietnam, despite the fact that it is the largest economy in Southeast Asia.
“Malaysia and Thailand of course have been more advanced [in trading with South Africa]. We are now looking at Vietnam, whose exporters have turned very aggressive lately,” Suprapto said during an interview at his office in Pretoria on Monday.
The embassy recorded that in the January-November 2014 period only, total exports from Indonesia to South Africa reached $1.23 billion as opposed to $420.44 million of South African exports to Indonesia. Indonesia’s trade surplus in 2013, according to the embassy, reached $357 million.
Data presented by the South African Revenue Service (SARS), however, depicted lower figures. Indonesia-South Africa total bilateral trade in the January-November 2014 was recorded at only $1.01 billion with $400.5 million of surplus on Indonesia’s side.
According to SARS, South Africa’s bilateral trade with Thailand in that period stood at $2.51 billion, followed by $2.32 billion it recorded with Singapore. With Malaysia, it had $1.45 billion then Vietnam with $1.11 billion.
“I have witnessed that Vietnamese furniture exporters were very aggressive and yet the prices they offered very competitive. They won the market even though they were new player in furniture here. I don’t know if our furniture products can penetrate South African markets,” Suprapto said.
Among Indonesia’s top export products to South Africa are crude palm oil (CPO), rubber and rubber products, as well as gemstones and automobiles. Indonesia, on the other hand, imported pulp and paper, industrial chemicals and base metal from South Africa.
“South African people also like batik, but they prefer inexpensive batik clothing. I think this is an opportunity for our small and medium enterprises,” he said.
He also suggested that Indonesia should consider importing South African beef and cattle. “The cattle here is very good quality. It could be an option for us to reduce our dependence on Australia’s,” he said.
The diplomat underscored that the embassy was ready to facilitate Indonesian businesses to explore South African markets. “Dealing with local distributors here is key to win the market. We are ready to bridge Indonesian exporters with them,” he said.
Suprapto also acknowledged that many Indonesian businessmen might have been reluctant to expand to Africa because negative images about the continent, “such as the ebola outbreak, poverty and famine”.
“Not all parts of Africa are the same,” he emphasized. “If Indonesian businessmen are not sure, ask us, we are happy to provide information and help facilitate with relevant authorities here.”
Previously, Lasro Simbolon, the director for African affairs at the Foreign Ministry, also called on Indonesian businessmen to change their perceptions about African markets.
“Economic growth in Africa has been consistent at about five percent in the past few years. The outlook is also very good,” he said recently.
The upcoming 2015 Asian-African Business Summit (AABS) in Jakarta, which would be a side event to the commemoration of the 60th anniversary of the Asia-Africa Conference, was expected to help provide clearer information about business prospects in Africa, Lasro said. (***)(++++)
According to data released by the Indonesian Embassy in Pretoria, Indonesia currently stands as South Africa’s fifth-largest trading partner in ASEAN, below Thailand, Singapore, Malaysia and Vietnam, despite the fact that it is the largest economy in Southeast Asia.
“Malaysia and Thailand of course have been more advanced [in trading with South Africa]. We are now looking at Vietnam, whose exporters have turned very aggressive lately,” Suprapto said during an interview at his office in Pretoria on Monday.
The embassy recorded that in the January-November 2014 period only, total exports from Indonesia to South Africa reached $1.23 billion as opposed to $420.44 million of South African exports to Indonesia. Indonesia’s trade surplus in 2013, according to the embassy, reached $357 million.
Data presented by the South African Revenue Service (SARS), however, depicted lower figures. Indonesia-South Africa total bilateral trade in the January-November 2014 was recorded at only $1.01 billion with $400.5 million of surplus on Indonesia’s side.
According to SARS, South Africa’s bilateral trade with Thailand in that period stood at $2.51 billion, followed by $2.32 billion it recorded with Singapore. With Malaysia, it had $1.45 billion then Vietnam with $1.11 billion.
“I have witnessed that Vietnamese furniture exporters were very aggressive and yet the prices they offered very competitive. They won the market even though they were new player in furniture here. I don’t know if our furniture products can penetrate South African markets,” Suprapto said.
Among Indonesia’s top export products to South Africa are crude palm oil (CPO), rubber and rubber products, as well as gemstones and automobiles. Indonesia, on the other hand, imported pulp and paper, industrial chemicals and base metal from South Africa.
“South African people also like batik, but they prefer inexpensive batik clothing. I think this is an opportunity for our small and medium enterprises,” he said.
He also suggested that Indonesia should consider importing South African beef and cattle. “The cattle here is very good quality. It could be an option for us to reduce our dependence on Australia’s,” he said.
The diplomat underscored that the embassy was ready to facilitate Indonesian businesses to explore South African markets. “Dealing with local distributors here is key to win the market. We are ready to bridge Indonesian exporters with them,” he said.
Suprapto also acknowledged that many Indonesian businessmen might have been reluctant to expand to Africa because negative images about the continent, “such as the ebola outbreak, poverty and famine”.
“Not all parts of Africa are the same,” he emphasized. “If Indonesian businessmen are not sure, ask us, we are happy to provide information and help facilitate with relevant authorities here.”
Previously, Lasro Simbolon, the director for African affairs at the Foreign Ministry, also called on Indonesian businessmen to change their perceptions about African markets.
“Economic growth in Africa has been consistent at about five percent in the past few years. The outlook is also very good,” he said recently.
The upcoming 2015 Asian-African Business Summit (AABS) in Jakarta, which would be a side event to the commemoration of the 60th anniversary of the Asia-Africa Conference, was expected to help provide clearer information about business prospects in Africa, Lasro said. (***)(++++)