China's market not impenetrable, say businesspeople

Consumer goods from China have penetrated all over the world market, giving the impression that its market is inaccessible. However, a handful of Indonesian businesspeople are beginning to find business opportunities in the country.

Fresh from attending the second China-ASEAN Expo (CAEXPO) in Nanning in southwest China, the businesspeople say they are convinced they can carve a niche in the biggest market on earth.

"They now realize that we have better materials and up-to- standard craftsmanship," says George Kencana, owner of PT Sinar Sri Rejeki Utomo, a rattan furniture manufacturing company, "our rattan has a bigger diameter than theirs and our finishing touches impressed them."

George, who took part in the expo for the first time, was overjoyed with the results of his promotion in Nanning from Oct. 19 to Oct. 22.

"It turned out that our clients did not only come from China, but from countries as far away as France as well," he said with a smile.

Rhenald Kasali, Special Assistant to Minister of Trade, who accompanied the Indonesian businesspeople to the expo, said that Nanning is often narrowly seen as a gateway for the Chinese market.

"In reality, it is also a gateway for ASEAN and the world market," he said.

Deputy Secretary-General of the Indonesian Chinese Entrepreneur Association Richard Tan concurred, saying: "It is definitely an international promotion platform, not merely a Nanning platform."

CAEXPO is set to become an annual event after beginning last November, and Nanning's six-hectare exhibition ground will be its permanent site. The expo is held simultaneously with the China- ASEAN Business and Investment Summit attended by government and business leaders from the 11 countries.

Darwin, an expert on traditional Chinese medicine and a businessman dealing in Indonesian herbal medicine, said his goods were all sold out at the expo.

"But these are promotional sales only, follow-up orders will come later," he told The Jakarta Post here.

Darwin said he had created a special herbal concoction called Darwin Jamu Godok (Darwin's herbal medicine) to treat diabetes. It made it five years ago after claiming to have a bout with the illness himself.

Having succeeded in treating himself with the concoction, he later decided to market it. Darwin said he made his herbal medicine entirely from native Indonesian plants.

Asked if he was aware that he was going against the odds by selling Indonesian medicine in a country famous for its medicine the world over, he said with a smile: "There is no effective medicine in the world, not even in China."

George and Darwin are only two among a growing number of Indonesian businesspeople that are beginning to look at China not as a threat but as a business opportunity.

And this is barely a year after ASEAN countries and China agreed to set up a free trade area by 2010. When the FTA agreement was signed last November, some parties expressed fears that China would swallow the ASEAN market.

Kasali also resented the misconception of many Indonesian businesspeople about the impenetrability of China's market.

"The rattan and the herbal medicine businesspeople have proven otherwise," he said.

Trade Minister Mari Elka Pangestu has said that Indonesia will have to rely on its strong points by nurturing its specific industries. (JP/Harry Bhaskara)