Indonesia is one of the largest economy in southeast Asia and one of the emerging market and developing economies of the world. The country is also a member of G-20 Major economies. Exports in Indonesia were worth 14116 Million USD in August of 2012. From 1980 until 2012, averaged of Indonesia Exports 4981,2 Million USD reaching an highest record in 18648,0 Million USD in august of 2011 and had a low record of 987,8 USD in August of 1986. Indonesia have a lot of type goods to export which the majority in gas, plywood, textiles and rubber. In mineral Production traditionally centered on baucite, silver, and tin. In addition, Indonesia is the world’s largest tin market. Indonesia is trying to expanding its cooper, nickel, gold, and coal output for export markets. Until 2007, Indonesia has been an oil exporter. For the industrial goods, Indonesia can exports better than previous. For example, Indonesia can export like a military needs for a few country in the world.
For the export, Indonesia has so many strength which make the development of the export it supposed more than know. So many advantage that make a lot of opportunity and support by new innovation , it’s not possible if someday the export in Indonesia become one of the best in the world. First strength is Indonesia have a lot of resource that can support. The resource for the example, like a land and raw material. plywood for the example, this resource have a big advantage to export to a lot of country. The plywood which grow especially in Kalimantan if we sell and make it to some product like a chair, table and the other goods which make a plywood, it would make the price of this goods can increase than if we sell just without a modification. The profit that can be earned can more and the the export for Indonesia can be more variate and this will make a new trademark to Indonesia, like” Indonesia, the country of the best meubel in the world”. With the new innovation with support in government policy. This trademark will come true someday. The second strength of Indonesia is the highest population of labor in indonesia. If the population labor high, the salary of labor will decrease and cheaper (ceteris paribus). This is a big opportunity for Indonesia because one of the factor of price some goods is the price of labor. In a competitive advantage, the price of labor cheap it make the price of product cheaper. The cheaper price of the product can make this goods won the market and the price can competition with the other country. the price of product cheaper, the demand of product will be increase. At the end, the price of labor cheaper would effect to demand of the product (ceteris paribus). So the export can better and more developed. And the last strength of export in Indonesia is a variated of culture in Indonesia. Indonesia is the country where the culture is everywhere. If the people can make a new innovation product or the same product with trademark of culture in Indonesia it will make a the product different form other. For the example, Indonesia want to export a pillow. If the pillow same as the others, the demand of product will be loss competition with china. But, if we make a same product but we make a something different like a new model that influence a culture in Indonesia, it will increase the demand of the product(ceteris paribus). because one of factor that can make a change of demand is taste and preference.
Evethough Indonesia have so many strength and opportunity, this country also have a few of weakness. First, most of people in Indonesia don’t want to make a new innovation to developed the product to export. In a price of product, china is the best one but the product is same without a different. If the price of product cannot more cheaper, the new innovation or different touch of model can be modified. It would make the product can challenge to other competitor because the taste can be depended for the demand. Then, the knowledge of the people in Indonesia have to increase more. People also must learn more about the success of the other country’s export and practice that to export in Indonesia. The past experience like a big mistake too have to discuss more to fix and change the way of how to make a success export . the experience of the country is a one of the big way to learn and make a indonesia’s export developed to be beter. And the last weakness and I think this is the most important is the technology advantange is Indonesia is lower. this will make the quality of product low. For the example, want to export some car. Country which produce a car is in everywhere like Germany, USA, and japan. They have a high knowledge which make their product have a quality of product so the demand of product will be increace too. (ceteris paribus). With the high of knowledge can make a high quality of product.
With technology advantage which still a low cate can fix with license of product. For the example, some company want to make a Panser 6x6. With a knowledge lower than japan , and want to decrease the cost of production. They can build their body ini Indonesia, but the machine can be licence from france. So they can make a new product bulid in Indonesia with licence machine from the other country and the lower cost of production. The new product can be produce and the price will more competitive in market. This way already developed in some government industrial company. And the product already sold in a lot of country in the world.
The successful of export in some country cannot be depend just the entrepreneur or the government industrial company, but the supported of government policy too. The first government policy must do to overcome weakness is give a scholarship. The most important thing to make a high quality knowledge is have a high knowledge too. And the last policy is allowing to some pabric to build without tax. Eventhough this policy is like loss some government revenue but it would make several effect. example like TOYOTA pabric established in Indonesia. So the company need a labor from Indonesia, then the labor can learn how to make this product after a few years. With the knowledge which they learn at the pabric and raw material which Indonesia have, can practical and build a new government company with new goods to export . the government company at the end can make a product with the technology and model same and developed with a new innovation for increase the taste of people with our product. The knowledge and innovation from the company, and the experience the labor from work in automotive car. The few things that can make a export in Indonesia more. variated, developed and can be a one of the biggest exporter in the world.
2. An interview with Financial director of Pindad
Name : Asakita Dikarla M
Npm : 120110120204
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