Trading and Industry Business Sector in Indonesia
Indonesia is a country that has many advantages in every business sector both internationally and nationally. Indonesia is known as a country that imports and exports to other countries. The Central Statistics Agency noted that Indonesia’s export level in February 2020 was US $ 13.9 billion. This figure is known to have increased by 2.24%.
Trading Business in Indonesia
The trade business sector in Indonesia is one of the ways the government increases the country’s foreign exchange. The Indonesian Minister of Trade has taken various measures to improve the economy and trade in Indonesia both export and import. Example, Indonesia is one of the Biggest Population of 87% is Muslim. This is means every product in Indonesia have to be registered and approve by the Food and Drug Supervisory Agency (BPOM) and have label “Halal” in every product or at least label of their products as non-halal. Export and import activities require access to accommodation and cooperation between countries, each of which provides benefits. One of the ways the government does is the openness of Indonesia to foreign investment.
Indonesia is noted to have 10 countries with each commodity. Among them:
- Textile Products and Textile Products (TPT): United States, Japan, the People’s Republic of China, South Korea, Turkey, Germany, the UAE, Brazil, the United Kingdom, and Belgium
- Electronic Products: Singapore, United States, Japan, Hong Kong, Germany, Netherlands, People’s Republic of China, Thailand, Malaysia, South Korea
- Rubber and Rubber Products: United States, People’s Republic of China, Japan, India, South Korea, Germany, Brazil Canada, Turkey, Malaysia.
- Palm Products: India, People’s Republic of China, Pakistan, Spain, Bangladesh, Egypt, Netherlands, Italy, United States, Malaysia.
- Forest Products: People’s Republic of China, Japan, United States of America, South Korea, India, Australia, Malaysia, Taiwan, United Kingdom, Netherlands.
- Footwear Products: United States, China, Belgium, Japan, Germany, United Kingdom, Netherlands, South Korea, Italy, Mexico.
- Automotive: Philippines, Thailand, Japan, Saudi Arabia, Vietnam, Malaysia, Mexico, Singapore, Pakistan, Brazil.
- Shrimp: United States, Japan, China, Vietnam, Hong Kong, Malaysia, United Kingdom, Taiwan, Singapore, Canada.
- Cocoa: United States, Malaysia, Netherlands, China, Canada, Estonia, Australia, Germany, India, Japan.
- Coffee: United States, Germany, Malaysia, Japan, Italy, Russian Federation, Egypt, United Kingdom, PRC, Algeria.
Based on the commodity and export destination country, Indonesia still has many things to consider, such as human resources. With the global economy, the level of foreign labor is a point of concern because several Asian countries have cheap labor, so the competitive strength of each country must be increased, especially Indonesia.
According to the World Economic Forum (WEF) Annual Meeting 2017 in Davos, Switzerland, global trade, cross-border lending, and foreign direct investment (FDI) are expected to slow further this year. It is predicted that Asia will perceive a particularly large impact, as it has become a continent which became a key player in global trade over the past decades.
Every element of the Government, especially the Minister of Trade and the Minister of Finance are required to be able to provide changes in the era of global trade. The Minister of Finance, Mrs. Sri Mulyani Indrawati said that the Indonesian State had Macroeconomic Fundamentals which gave and made ASEAN countries the country with the largest economic level.
Industry Sector in Indonesia
The industry area is the segment that at present contributes most to Indonesia’s yearly GDP development. The two most significant sub-areas of the industry are mining and manufacturing, both being significant mainstays of the country’s economy since the 1970s, in this way being motors of monetary change and advancement during Suharto’s New Order system. Despite the fact that the manufacturing sub-area has lost its force after the Asian Crisis of the late 1990s, it despite everything establishes the most well-known sub-division of Indonesia as far as remote direct speculation (FDI), trailed by the mining sub-segment.
Trough the primary decade after the Asian Crisis, the industry sector experienced a time of downturn in which foreign investors not interested to invest. After 2008, foreign company and investor have recaptured trust in this division because of robust domestic demand brought on by growing middle-class, low wages and the promising perspectives of the mining sub-sector. One pointer that bring investors’ interest in Indonesia’s industry sector is a significant rise in hectares of industrial land that was taken up in the Greater Jakarta region from 2010 onwards.
However, there is a lot of opportunities to get better to make this industry sector increasingly effective and alluring. A significant issue is a requirement for development in Indonesia’s infrastructure to make businesses increasingly beneficial and cost-effective. In addition, muddled administration, defilement and lawful vulnerability endanger financial specialists’ trust in the Indonesian market.
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