Indonesia Not Optimal Yet to Working on Russian Market

Putu Karya By Putu Karya, 9th Sep 2010 | Follow this author | RSS Feed
Posted in Wikinut>News>Business

Russia, an importing country the world's 11th largest. Although the Indonesia-Russia trade relations has been running for 60 years, this red bear country still the country's export destinations of Indonesia number 36.

"Russia is a potential market,with a trade relationship that has existed long enough. We want to increase the value of trade in both countries from a range of U.S. $ 700 million to U.S. $ 1 billion, in 2014 later.

Russia is a potential market for Indonesia

We are still a lot of potential, considering that the Russian population is large and increasing revenue of them, "said Trade Minister Mari Elka Pangestu, in a press conference in Jakarta, Wednesday (8 / 9).

According to Mari, this target will be pursued through the improvement of relations between businessmen of both countries.

"The trade mission to Russia on next September 15 to 18, we will bring 14 companies from various sectors, ranging from food and beverages, to the coal mining industry. They will meet directly with some of the prospective trading partner of Russia," says Mari.

Until the end of the semester beginning in 2010, the trade balance of both countries is still a deficit for Indonesia. Indonesia's export value reached U.S. $ 242 million, an increase of approximately 76% from the same period in 2009, in the range of U.S. $ 137.3 million. But at the same time, the value of imports from Russia increased rapidly 513.92% from U.S. $ 88 million to U.S. $ 540 million.

"That deficit is still large, around U.S. $ 298 million. We still depend on oil and gas imports, which reached U.S. $ 110 million and for the export of non oil and gas, dominated by the steel to reach U.S. $ 188.6 million and as well as chemicals (potasisium chloride) to U.S. $ 188 million, "he said.

Meanwhile, commodity wheat from Russia, until now increased 90.4% from U.S. $ 9.4 million to U.S. $ 17.9 million. In 2009 then, the import value of wheat imports from Russia reached a value of U.S. $ 67.3 million. Although there is decreasing the level of wheat production in countries of the Soviet Union was broken, Mari believes, will have no impact for the Indonesian market.

"Our dependence on imported wheat from Russia. So we will not be affected by the freeze of the export of wheat from Russia," says Mari.

Meanwhile, non-oil export commodities madalah mainstay Indonesian palm oil / CPO, which reached U.S. $ 28.4, an increase of 526% from U.S. $ 4.54 million in the same period.

However, at this period, the largest decline in export value, experienced by the commodity of tea fell 27.9% from U.S. $ 10.5 million to U.S. $ 7.6 million.

"The biggest decline of the commodity of tea. Our market share has been approximately 3.17%. Because it was in this trade mission, we want to raise again the tea market with the participation of our entrepreneurs in the World Food Expo in Moscow," says Mari.

According to him, even though the value ekpsor Indonesia is still relatively small, only about 0.4% of Indonesia's total exports to world markets, but continued to increase in the range of 7.6% over the period 2005-2009.

"Commodities are still the mainstay our palm oil, electronics, tea and footwear. This means, we are likely to increase exports, not only for products based on natural resources (SDA), but also manufactured products," he said.

In 2009, the trade value of the two countries reached U.S. $ 774.89 million, with export value reaching U.S. $ 438 million and imports reached U.S. $ 458.8 million. Meanwhile, Russian investment in Indonesia, until now, has only reached U.S. $ 300 thousand.

Tags

Indonesia, Market Conditions, Marketing, Marketing Strategies, Russia, Russian

Meet the author

author avatar Putu Karya
I was born in Bali and I like to work hard, and I am also very pleased to write and read. Because we can express by writing what's on our minds, and might be useful to others. Because according to our

Share this page

moderator laluls212 moderated this page.
If you have any complaints about this content, please let us know

Comments

Add a comment
Username
Can't login?
Password