Indonesia needs to improve its marketing strategy

JAKARTA (JP): Exporters should understand marketing and competition concepts and prepare strategic steps to compete in the free trade era, says a senior official.

Coordinating Minister for Production and Distribution Hartarto said Thursday that the international market had grown much larger, creating more opportunities for Indonesian exporters.

"However, I will remind you that national exporters have to strengthen their marketing networks to tap into the growing export potential," Hartarto said at a seminar on marketing.

In his address read by his advisor Kumhal Djamil, he said the government and marketing community needed to cooperate to create optimal marketing networks and strategies, and to adjust them to marketing trends.

Speakers at the seminar organized by Management Institute of the University of Indonesia and the Jakarta Consulting Group were president of Merpati Nusantara Airline, Budiarto Subroto; vice president of PT Bank Papan Sejahtera, Enny Harjanto; and director of PT Pembangunan Jaya, Hiscak Secakusuma.

"In the free trade era, industrial products, services, agribusiness and mining will dominate Indonesian exports," he said.

Non-oil exports increased to US$38.01 billion in 1996 from $34.95 billion in 1995 and from $14.60 in 1990. Non-oil exports are projected to increase 16.8 percent per year.

Better marketing strategies and strengthening Indonesia's position in the global market were important steps to improve the country's non-oil exports, Hartarto said.

Currently, Indonesia is committed to gradually opening its market to comply with free trade arrangements under the World Trade Organization, Asia Pacific Economic Cooperation forum or under regional pact such as Association of South East Asian Nations (ASEAN) Free Trade Area.

Hartarto said Indonesia also needed to improve its human resources to adjust to rapid changes in industry, customer demands, products, technology, distribution and competitors. (10)