Sectors With Export Potential – TBC | Turkiye Business Center

Indonesia / Sectors With Export Potential

Besides agricultural products such as wheat flour, olive oil, olives, tomato paste, dried fruits and nuts, tobacco, fresh fruits and vegetables, Indonesia is also a potential market for products such as iron and steel products as industrial products, milling machines, food processing, packaging machinery and equipment, textile machinery, woodworking machinery, building materials, marble, carpet, prayer rug and defense industry products.

POTENTIAL EVALUATION

In order to increase our exports to Indonesia, which is among the priority countries of the 2020-2021 period as stated by the Ministry of Commerce, it is necessary to attach importance to promotional activities in this regard. In the conversations carried out, it was determined that it is not known which products Turkey produces and exports. Except for flour, importers do not have significant information about Turkish products. It was also observed that Turkish companies were not acting aggressively in the market. The Chinese, who make up about 5% of the population, are mostly interested in trade. The Chinese have a great weight in the economy. Turkish companies, who want to establish a commercial relationship with Indonesia, should know that they will face the Chinese companies and they need to take positions accordingly.

Private sector representatives state that they think very positively about our country and that there can be many common points in terms of trade with our country. In addition, private sector representatives also state that they want to have one-to-one contact directly with the institutions and company representatives in our country on a sector basis. They state that they want to have a direct contact with the representatives of our private sector towards trade and shopping on what can be bought and sold on a sectoral basis.

The issue that the private sector representatives strongly emphasize is that commercial relations should be based on long-term relationships. In addition to important business relationships such as price, quality, shipment, mutual gain, payment, establishing a long and continuous business partnership is also fundamental. In this respect, while declaring that they want to work with Turkish companies, they did not neglect to explain their thoughts on these issues. It is observed that great importance was attached to this matter in Indonesian business culture.

It is also seen that daily commercial life is very lively and active in Indonesia, shopping malls, supermarkets, hyper markets and other shopping places are generally crowded and this crowd increases even more on weekends and public holidays. Citizens prefer indoor spaces instead of open air to spend time due to the tropical climate in the country.

The amount of imports from our country is very limited when we consider the import potential of Indonesia. The biggest reason for this situation is stated as the lack of publicity of Turkey in Indonesia. Indonesians mostly have positive thoughts about our country, but they do not have enough information about our country in terms of commerce. Our products are not well known in the Indonesian market. The fact that the variety and quality of Turkish products is not known is one of the problems encountered in Indonesia.

Therefore, it is necessary to organize special promotional programs for the promotion of our goods and to regularly attend fairs for product and country promotion in this country. It is observed that even opening small stands in Shopping Malls for product tasting in terms of food products can be an effective promotional tool. It is observed that such promotions could not be carried out because Turkish companies in Indonesia are small-scaled companies.

Since Turkish goods are not recognized in Indonesia, there is no positive or negative bias towards Turkish goods. It is noteworthy that large-scale companies in Turkey have not yet entered the Indonesian market directly. This situation leads to low promotion activities of Turkish goods in Indonesian market. If large-scale Turkish companies enter the Indonesian market by opening a branch or through an agency, this will contribute to the promotion of Turkish products in Indonesia. Additionally, entering the market with branded products will help create a positive image of Turkish goods. Even though the long transportation in the export to the Far East countries and the absence of regular flights seem to be a problem, it offers some opportunities as well.

It is learned that the ships from Indonesia go full on their way to Turkey, and they are empty when returning. For this reason, when sending goods from our country to Indonesia, there are opportunities where goods can be sent half as cheaply. It is necessary to pay attention to packaging, especially when selling food products to Indonesia.

Since the climate is generally humid, it is important to minimize the contact of the product with air by using vacuum packages in order to protect the products. It is observed that consumers attach great importance to packaging. In addition, due to the increased sensitivity to health issues in recent years, nutritional values are required be stated on the product.

Given that nearly half of the world’s population lives in Asia, it is important to increase the relations with this country in terms of both public and private sectors, taking into account Indonesia’s Muslim identity, strategic location in the region, and the desire to trade more with our country as well.

Indonesia Business Guide back to page