Indonesia to boost non-oil exports

Published August 25, 2005

JAKARTA, Aug 23: The Indonesian government has encouraged local exporters to build global brands and bring about added-value to their products to increase competitiveness to boost the national non-oil exports.

“This year the National Agency for Export Development (BPEN) has started thinking of Indonesia not facing competition and relying merely on low prices,” special staff member of the Trade Minister for export development Rheinald Kasali told copper handicraftsmen under the guidance of the Dharma Bhakti Astra Foundation (YDBA) at an exhibition here on Tuesday night.

At the opening of the copper handicraft exhibition being held from August 23 to 31, 2005, he said that starting this year BPEN is encouraging exporters to build brands in the international world and asked national businessmen to start developing added-value for their export commodities.

“Building a brand is very important. It is not only like giving a name, but creating a positive perspective in the international world,” Rheinald, also known as an expert in management and marketing, said.

He said that building a brand does not need much money, and is proportional with the line of business being undertaken. If this is done seriously, he added, the image of the brand will be created in five years.

“The building of a brand must be started with a good product and promotion in any form would be useless. Then this is to be followed by making the packaging, and an attractive gallery,” he said.

BPEN, he added, must also encourage businesspeople to start creating added-value of their products, because he noticed that Indonesian export commodities are still mostly of relatively low value, which can be promoted.

He also reminded handicrafts people and small and medium enterprises to understand the character of the consumers in each of their countries of destination.

He also said that the value-addition to the export commodities of small and medium enterprises can be increased, because most of these enterprises are engaged in the handicraft sector with the products having a high artistic value and stories behind them, all of which will raise their prices.—APP

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