JAKARTA – Amid mounting challenges posed by new tariffs and trade war between USA and China, several commodities of Indonesia, including palm oil, are believed to still have promising prospect at the global market.
Market Intelligence & Lead Management Chief Specialist Indonesia Eximbank (LPEI), Rini Satriani said that Indonesian exporters still have the opportunity to expand their export market through strategic cooperations, such as Trans Pacific Partnership (TPP), BRICS, and various agreements of free trade (FTA) with other strategic countries. “Commodities like palm oil, fisheries, sugar, and household products still have big potential trade in countries of BRICS and TPP,” she said.
“The unrealized potential market for palm oil and derivative products in BRICS and TPP is estimated at US$9.8 million, sardines at US$23 million, sugar at USD5.4 million, and household products such as shampoo at US$32.9 million,” Rini said in Jakarta on Thursday (1/5/2025).
She further said that market diversification is a strategic step that should be taken to expand export access. It can be pursued by utilizing the economic cooperations like the Trans-Pacific Partnership (TPP), BRICS, and many other opportunities in other countries as strategic partners.
“It’s not an easy task to divert market to other potential export markets. But it can be realized if exporters are able to identify credible buyers and they have the right market access. As long as the quality of products is maintained, then buyers’ loyalty can be maintained or even raised through continuation of repeat orders,” she said.
According to Rini, the trade war between USA and China will cause direct and indirect impacts to Indonesian exports. “Around 10 percent of Indonesia’s exports to USA will be directly exposed to the USA’s policy of reciprocal tariff. Meanwhile, the indirect impacts will be felt through high rivalry as a result of diversion of exports and supply chains from China to other countries, including Indonesia,” she said.
But she stated that despite the facts, Indonesia will stay optimistic in seeing the global export prospect in medium and long terms. (*)
