SMEs seek govt help in boosting exports<\/p>\n
Zakki Hakim, The Jakarta Post<\/p>\n
Small and medium-sized enterprises (SMEs) have called on the
\ngovernment to provide help in promoting their products overseas
\nin a bid to boost their exports.<\/p>\n
The SMEs have also asked the government for cheap loans to
\nfinance working capital.<\/p>\n
\"The U.S. and Middle East are some of our main export
\ndestinations but there are other countries with great potential
\nand the government should help us penetrate those markets,\" Tri
\nIsfarikha from Regol Craft, a leather and handicraft specialist,
\ntold The Jakarta Post.<\/p>\n
Her company usually exports its products to Spain and the U.S.
\nbut it has difficulties in effectively penetrating markets in
\nother countries.<\/p>\n
The company was one of 817 small and medium-scale exporters
\nfrom across the country that took part in last week's five-day
\n2003 Indonesia Expo at the Jakarta Convention Center, which was
\norganized by the National Agency for Export Development (BPEN) of
\nthe Ministry of Industry and Trade.<\/p>\n
BPEN is planning a number of trade promotional activities
\noverseas this year in a bid to help boost exports, but small
\nexporters said that they could not participate in the program
\nbecause they lacked the money to travel there.<\/p>\n
Experts have said that helping the SMEs could be one way to
\nimprove the country's weak export performance as their low-end
\nmanufactured products were relatively immune to the negative
\neffects of the economic slowdown in developed nations.<\/p>\n
Most of the exporters interviewed by this paper expressed
\noptimism that exports this year would continue to increase, with
\nsome even claiming up to a 50 percent rise.<\/p>\n
There is no data available on the real contribution of the
\nSMEs to the country's total exports of about US$57 billion last
\nyear.<\/p>\n
\"The government should help us promote our products overseas,\"
\nsaid Yonni Soeharyo of Watu Dewa Art, a furniture manufacturer.<\/p>\n
He said that the current worldwide phobia of terrorism was
\ndiscouraging overseas buyers from coming to this country to look
\nfor products, so local manufacturers had to fly overseas to
\npromote them.<\/p>\n
\"We hope that there will at least be accommodation for us
\nwhile we are participating in the (overseas) exhibition,\" he
\nsaid.<\/p>\n
He added that the possible war in Iraq made the overseas
\npromotion more important for helping penetrate other markets less
\naffected by the situation.<\/p>\n
Meanwhile, Sarah Widjanarko from Anya Design, which
\nspecializes in manufacturing bags, shoes, clothing and
\naccessories, urged the government to provide soft loans,
\nparticularly for small exporters, to finance working capital.<\/p>\n
She explained that foreign buyers normally pay only 30 percent
\nup front for each transaction and then pay the balance once the
\ngoods arrive at the destination and were according to the
\nspecific order. But many small exporters experience difficulty in
\nfully financing production costs under this arrangement.<\/p>\n
\"We need low interest loans, and the government should also
\nsimplify the export procedure,\" she said.<\/p>\n
\"The government should focus more attention on SMEs because we
\nhave the potential to bring more dollars in,\" she added.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/smes-seek-govt-help-in-boosting-exports-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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