Print Friendly and PDF

Why Doing Export

Factors that drive manufacturer or business to export are, among others:

1. Traditional Commodity

Usually, a company produces a commodity as a continuation or economic remnants of colonial ages such as rubber, coffee, tea, pepper, tengkawang, tin, copper, and other mining products. This probably continues as nowadays export activities.

2. Profit Optimization

Besides selling a product domestically, by using export, a company could expand their sales reach up to foreign countries, and the types of good are eventually not limited for domestic consumers only.

3. Market Search

For a company with strong domestic market, export is an opportunity for market diversification which eventually strengthens the position of traded commodities.

4. Utilization of Excess Capacity

If the production capacity of an industry has not exceeded the machine capacity, then the idle capacity could be allocated for export market.

5. Export Oriented Products

There are some labor-intensive industries which deliberately moved from Industrial Countries such as Japan, Korea, Taiwan or Singapore to Indonesia with the purpose of relocating shoes industry, garment and so forth.

6. Trading House

The government is currently developing trading house concept, such as those in Japan, to facilitate exporters in penetrating international markets. Trading House will facilitate exporters in analyzing the market or identifying Buyer and providing other necessary information related to the market condition in the country where the Trading house is located.

7. Highly Competitive Commodity

Products with original materials from Indonesia and having absolute advantage or other products with comparative advantage have great opportunity for export market. For example, materials such as natural rubber, tropical wood, agribusiness, handicraft and others, all have relatively high competitiveness in export market.