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<\/p>\nHaving big and dynamic economy, the USA has long become the focus of attention for global exporters. For Indonesia, especially in the context of palm oil products, the USA market offers a big and promising opportunity. But due to the country\u2019s market condition, which is influenced by ever changing trend and preferences of consumers, Indonesia needs a well-designed strategy to penetrate the market. Besides, its legal challenge has also added the complexity of the market and indicated its importance for Indonesian commodities.<\/p>\n
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Such condition has not only created an opportunity but also required\u00a0deep understanding of the market that will enable exporters to formulate their effective strategy. Indonesian exporters have to continually monitor and adjust themselves to the changes of preferences and regulations in the USA in order to ensure that they will not only enter the market but also maintain and increase their presence in the market.<\/p>\n
Palm Oil Market Analysis<\/strong><\/p>\n Indonesia, which is rich in natural resources, has become the key player in the exports of various commodities. Economic sectors like clothes, electronics, footwears, rubber, and furniture have enjoyed a strong trade relations with the USA. But such potential is also significant for other commodities, such as crude palm oil (CPO). The growth of demand for Indonesia\u2019s CPO has shown a positive trend of export to the USA, indicating a strong and growing demand in the country. Factors like changes in health standard and diets in the USA have also influenced the demand and shown that deep and responsive understanding of the market trend can create new opportunities to increase exports.<\/p>\n Indonesia\u2019s export of CPO to the USA has not only shown positive trend but also highlighted the importance of the commodity in the bilateral trade relations. The USA as one of main destinations of CPO export has shown a significant market potential. Currently, the USA is the fifth largest market for Indonesian CPO after China, India, EU and Pakistan.<\/p>\n The increase has not only reflected the quality of Indonesian products, but it is also resulted from good adaptation and response to the changes of standards and preferences in the USA market. But the positive trend should be also seen as a call for continual improvement. Considering the continually changing market and tough competition, Indonesia should not only focus on maintaining quality and standard, but also keep innovating and adapting themselves to the market needs to maintain and expand their market shares.<\/p>\n Opportunity identification and market penetration strategy<\/strong><\/p>\n Effectively identifying opportunities and developing strategies to penetrate the market is the key of success to enter the USA market. There is a big and promising opportunity for Indonesian palm oil in the market. But to take the opportunity, Indonesian companies have to understand and adjust themselves with the unique and ever changing market condition. Such strategy has to cover understanding on the products and other advantages such as sustainable agricultural practices that produce products with low residue. Understanding and utilizing the advantages can help Indonesia in not only entering the market but also in developing its reputation on quality and reliability.<\/p>\n Indonesia\u2019s advantage in producing commodities is the result of unique and favorable condition of agriculture.<\/p>\n The ability to produce along the year provides a significant competitive advantage. Besides, sustainable agriculture that keeps the quality of natural products increases added value in the market that is growingly aware on health and sustainability.\u00a0But the advantage should be maintained and increased through innovations and sustainable practices. As the global market has been increasingly competitive, it is important for Indonesia not only to rely on natural advantage, but also to continually innovate and adjust to the market demands, public preferences and awareness on environment in managing production.<\/p>\n Income elasticity for vegetable oils in the USA, which approached 1, indicated that the market is widely open and responsive to the changes of prices and income. This offers a big opportunity for Indonesian products to get bigger market share. But\u00a0 competition with other countries also requires Indonesia to continually innovate and offer added value to increase its competitiveness with other competitors. Facing the competition needs deep understanding on the market, competitors and flexible and adaptive strategy in dealing with the changing condition and quickly take new opportunities.<\/p>\n Increasing quality and establishing synergy with the government, exporters, and farmers are important steps to gain success in the exports. Increasing the standards and ensuring that products fulfill or even exceed the market expectation is the key to increase exports. Synergy with various stakeholders is also important. The government can help open trade relations and facilitate exports and exporters in fulfilling the market requirements, and the farmers in fulfilling the required standards. The cooperation can help develop and maintain Indonesia\u2019s reputation as the exporter of high quality commodities.<\/p>\n Sustainability and compliance consideration<\/strong><\/p>\n As the public is more focused on sustainability and compliance, regulations in the USA can create opportunities as well as challenges. For the palm oil, more accommodative regulations compared to the EU offer opportunities, but also indicate possibility of changes. Anticipating and responding to the changes with proactive and adaptive strategy can help Indonesia in complying with the regulations and in leading in the sustainability and compliance, developing a strong reputation and increasing its products\u2019 competitiveness in the market.<\/p>\n Challenges such as accusations of dumping and low standard of emissions for CPO have shown the complexity of the USA market. A well-designed strategy is needed to deal with the challenges. Tackling the anti-dumping issue and increasing the emission standard can help solve the obstacle and increase the reputation and acceptance of Indonesian products in the USA market.\u00a0The strategy should cover cooperation with the USA regulators, deep understanding on the change of regulations, and adjustment of products and practices to fulfill or exceed the standard. By implementing such approach, Indonesia can change the challenges to opportunities and strengthen its position in the USA market.<\/p>\n By considering the facts, we can conclude that the USA market offers significant opportunities for Indonesian palm oil commodity, but it also requires deep understanding, adaptation, and innovation. By focusing on quality, sustainability and effective market strategy, Indonesia will not only be able to enter the market, but also able to develop its strong reputation and increase exports. The cooperation between the government, exporters, and farmers with proactive approach to the regulations and sustainability will stand as the key factor in fully utilizing the opportunities and advancing Indonesian position at the global market. (Dr. Fadhil Hasan, Foreign Division Head at the Indonesian Palm Oil Association (GAPKI)<\/em><\/p>\n Source: sawitindonesia.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"