Trade fairs a 'help' for export promotion

Trade fairs a 'help' for export promotion

JAKARTA (JP): A senior executive of the National Agency for
Export Development (NAFED) said on Wednesday that participation
in international trade exhibitions was one of the most effective
strategies to promote exports.

Director of the agency's market development for Europe
Suhartono said that many Indonesian companies received more
export orders following participation in international trade
fairs.

He acknowledged that taking part in the events was still too
costly for most local firms, but said the benefits outweighed the
expense.

Indonesian participants usually secured major orders during
the fair, he added.

"Participating in international trade exhibitions overseas is
one of the most effective promotional efforts to introduce
Indonesian products to overseas markets, especially amid the
tighter competition in global markets like nowadays," he said in
a news conference on the recently ended Hannover Fair.

Suhartono said local companies would have to finance their
participation because the government could no longer afford to
extend its financial support of the past.

"In the 1999/2000 fiscal year, NAFED can only afford to help
in financing the participation of Indonesian companies in two
international trade fairs in Germany, the SPOGA'99 and the
ANUGA'99, both in Cologne due to the government's very tight
budget," he said.

NAFED also will help in coordinating Indonesian companies'
participation in two other trade fairs in Germany, the
Tendence'99 and the Ambiente 2000, both in Frankfurt, but the
firms must bear their participation costs.

In the 1998/1999 fiscal year, the government, through NAFED,
sponsored Indonesian companies' participation in 12 international
trade fairs in Germany.

Participation in five of the fairs received assistance from
the German government through its GTZ/Protrade, one was funded by
NAFED and the six others were jointly funded by NAFED and
participating companies.

Suhartono said GTZ/Protrade also would not provide assistance
to Indonesian companies to participate in German trade fairs in
1999/2000.

"It is not clear why the German government, through
GTZ/Protrade, has decided to stop giving assistance to Indonesian
companies. Such assistance is really helpful for Indonesian
companies in promoting their products to overseas markets."

Suhartono said German trade exhibitions, such as the Hannover
Fair, were popular in international business circles.

"German trade fairs are managed very professionally. They are
the places where producers, the fair participants, actually could
meet buyers from all over the world," he said.

NAFED has been a constant in helping Indonesian companies
participate in trade exhibitions in Germany since 1971, he said.

Products offered by Indonesian companies in trade fairs in
Germany include fresh and frozen fish and fish-related products,
canned fish, industrial goods, processed foodstuffs, furniture,
automotive components, electronics components, footwear and
leather products, stationery, handicrafts, toys, garments,
watches and other items.

Annual exports of the products to Germany increase by more
than 20 percent annually, Suhartono said.

Germany's imports of Indonesian furniture grow an average 38
percent every year, with import value of more than US$2 billion
in 1998.

Lamp producer PT Sinar Angkasa Rungkut, the only Indonesian
participant in the Hannover Fair'99, said it secured $2 million
in orders at the event. (gis)