MARKET DEVELOPMENT
Government Aims to More Than Double Exports to Turkey
Government Aims to More Than Double Exports to Turkey
24/03/2015 (Jakarta Post) - The country plans to boost exports to Turkey by more than double within the next four years by facilitating Turkish businesses as well as promoting domestic products.
The export target is set to reach US$3.87 billion in the next four years, up by 166.9 percent from the $1.45 billion recorded last year, according to the Trade Ministry’s director general for national export development, Nus Nuzulia Ishak.
To help achieve the target, Indonesia would facilitate potential Turkish buyers to come and connect them with local business. This would be carried out through buying missions and business forums, Nus said Monday.
“Buying missions are primary ways to grab export opportunities and to promote Indonesian products to buyers, which is expected to generate trade and investment in Indonesia,” she said, referring to the business visits sponsored by the Indonesian government.
Among the products with the most potential to increase exports to Turkey are food and textiles as well as textile products, particularly halal food and Muslim fashion items, according to mapping by the Trade Ministry.
Indonesia’s exports to Turkey amounted to $1.45 billion last year and comprised mainly woven fabrics, artificial staple fibers, palm oil, yarn, furniture and electronic parts. On the other hand, imports, which stood at $1.03 billion, consisted of tobacco, wheat, chemical, marble, synthetic yarn and tractors.
Turkey was the 23rd-biggest destination for Indonesian exports in 2014, while Indonesia was the 26th supplier for Turkey.
The Trade Ministry welcomed on Monday around 20 Turkish businesspeople lead by Istanbul Chamber of Commerce and Industry chairman Murat Yalcintas as part of Turkey’s first buying mission this year. They sorted out business opportunities with Indonesian producers in the areas of building materials, textiles leather, shoes and machinery.
Under the previous administration, Southeast Asia’s largest economy and the Euro-Asian country had planned to negotiate a preferential trade agreement (PTA) to push up bilateral trade.
Preference in terms of tariff reduction would only cover a small number of selected items agreed to by both parties. However, the follow up to the proposal has been unclear.
In the latest development, the Indonesian government said it had carried out a joint study to prepare talks on a comprehensive trade and economic partnership (CTEP) with Turkey.
The Trade Ministry’s director general for international trade cooperation, Bachrul Chairi, who is in charge of holding trade talks, however, could not be reached for comment.
Indonesian Palm Oil Producers Association (Gapki) executive director Fadhil Hasan demanded the government carry out negotiations to create a beneficial trade arrangement.
“The trade agreement will help create a level playing field for us against Malaysia,” Fadhil said, adding that further market opening as a result of the deal could facilitate Indonesian palm oil exports to some Middle East countries, such as Iran and Iraq, as Turkey might serve as a trade hub.
Indonesia, the world’s top palm oil producer, expects decreased competitive edge compared to its main rival, Malaysia, following the recent implementation of a PTA with Turkey, which cuts import duties of Malaysian palm oil to 20 percent from 31.2 percent.
Indonesian palm oil sales to the Middle East rose by 16 percent to 2.29 million tons in the past year, according to Gapki data.
The export target is set to reach US$3.87 billion in the next four years, up by 166.9 percent from the $1.45 billion recorded last year, according to the Trade Ministry’s director general for national export development, Nus Nuzulia Ishak.
To help achieve the target, Indonesia would facilitate potential Turkish buyers to come and connect them with local business. This would be carried out through buying missions and business forums, Nus said Monday.
“Buying missions are primary ways to grab export opportunities and to promote Indonesian products to buyers, which is expected to generate trade and investment in Indonesia,” she said, referring to the business visits sponsored by the Indonesian government.
Among the products with the most potential to increase exports to Turkey are food and textiles as well as textile products, particularly halal food and Muslim fashion items, according to mapping by the Trade Ministry.
Indonesia’s exports to Turkey amounted to $1.45 billion last year and comprised mainly woven fabrics, artificial staple fibers, palm oil, yarn, furniture and electronic parts. On the other hand, imports, which stood at $1.03 billion, consisted of tobacco, wheat, chemical, marble, synthetic yarn and tractors.
Turkey was the 23rd-biggest destination for Indonesian exports in 2014, while Indonesia was the 26th supplier for Turkey.
The Trade Ministry welcomed on Monday around 20 Turkish businesspeople lead by Istanbul Chamber of Commerce and Industry chairman Murat Yalcintas as part of Turkey’s first buying mission this year. They sorted out business opportunities with Indonesian producers in the areas of building materials, textiles leather, shoes and machinery.
Under the previous administration, Southeast Asia’s largest economy and the Euro-Asian country had planned to negotiate a preferential trade agreement (PTA) to push up bilateral trade.
Preference in terms of tariff reduction would only cover a small number of selected items agreed to by both parties. However, the follow up to the proposal has been unclear.
In the latest development, the Indonesian government said it had carried out a joint study to prepare talks on a comprehensive trade and economic partnership (CTEP) with Turkey.
The Trade Ministry’s director general for international trade cooperation, Bachrul Chairi, who is in charge of holding trade talks, however, could not be reached for comment.
Indonesian Palm Oil Producers Association (Gapki) executive director Fadhil Hasan demanded the government carry out negotiations to create a beneficial trade arrangement.
“The trade agreement will help create a level playing field for us against Malaysia,” Fadhil said, adding that further market opening as a result of the deal could facilitate Indonesian palm oil exports to some Middle East countries, such as Iran and Iraq, as Turkey might serve as a trade hub.
Indonesia, the world’s top palm oil producer, expects decreased competitive edge compared to its main rival, Malaysia, following the recent implementation of a PTA with Turkey, which cuts import duties of Malaysian palm oil to 20 percent from 31.2 percent.
Indonesian palm oil sales to the Middle East rose by 16 percent to 2.29 million tons in the past year, according to Gapki data.