One of the urgencies of this trade agreement is the diversification of export destination countries, where it is hoped that the market share to the African continent is expected to be greater in the future. Deputy Chairman of the Chamber of Commerce and Industry ("Kadin") for International Relations,ShintaWidjajaKamdani also said that market opportunities in Africa are quite promising for the national industry.
"Regarding market opportunities, least developed countries ("LDCs") and developing countries in Africa are promising for national industries even though they do not have large market shares such as traditional markets or high purchasing power".
According to her, this is because these countries do not have too
strict product standards so that national business actors do not have to bother
to adjust business processes and take care of various matters related to
standards of goods to enter the market.
"This is very good for small and medium enterprises or business actors who are exporting for the first time. Indirectly we are encouraging Micro, Small and Medium Enterprises ("MSMEs") and national business players who are only good at home to expand into other markets," said Shinta.
Not only that, she also said, trade competition in Africa is easier considering that only a few countries in Africa have manufacturing bases and only a few countries were willing to trade with the African region. This makes the competition less intense.
"It would be better if the government also helps create an FTA / PTA or an affordable trade insurance scheme to cover some of the high trade risks with LDCs and developing countries in Africa," According to Shinta, with this government's move, business actors can be more interested and more confident in expanding their businesses to Africa.
See also : kontan.co.id
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