Trading With Indonesia - New Report Helps Exporters

AsiaNet 52728

AMSTERDAM, Apr. 16/PRN=KYODO JBN/ --

    A report published this week gives exporters an insight into how to profit

from the opportunities of trading with Indonesia.

    'Trade successfully with Indonesia', produced by leading credit insurer

Atradius, covers those factors that need to be addressed if export ventures to

Indonesia are to be successful. Atradius is also broadcasting an accompanying

webinar on this topic.

    Indonesia holds immense opportunities for foreign exporters, especially

those whose traditional markets are stagnant as economic problems continue to

embattle many countries. It is one of the world's fastest developing economies,

whose growing middle classes have a taste for foreign goods and services. Add

to that its government's extensive investment in much needed infrastructure

projects and the prospects for foreign businesses become even more apparent.

    As the report points out, foreign suppliers need to take time to understand

every aspect of the Indonesian marketplace.

    A local representative is a prerequisite and choosing one that understands

your business is essential. In a country as vast as Indonesia, it is also

advisable to engage a distributor with a proven track record.

    A business model that works in traditional markets may not in emerging

markets like Indonesia. Pricing strategy needs to take into account the cost of

distribution - Indonesia is as vast in area as the USA - and average incomes

are still considerably lower than in more mature markets. Though there are many

channels to promote products in Indonesia, foreign suppliers need to tread

carefully. In a country steeped in religion and traditional values, there is a

sensitivity to some elements of advertising that are acceptable in other

countries.

    Intellectual property (IP) theft is always a concern and, while the

Indonesian authorities have made considerable progress in combating IP theft,

it can still be a real danger. Foreign exporters should register their patents,

trade marks and designs at the earliest opportunity in Indonesia as

registration in another country will not protect their rights.

    Foreign suppliers must also ensure compliance with Indonesia's often

complex import regulations and take account of import tariffs, which can vary

considerably by product.

    Indonesian business culture can be alien to those used to trading in western

countries. Even the nuances of the Indonesian language can be misleading, and

so it is advisable for foreign suppliers to have a fluent Bahasa Indonesia

speaker on their team.

    The Indonesian legal system is based on the principle of Pancasila, valuing

consensus above confrontation. If a dispute over payment arises, the

contractual parties must seek agreement through mediation or arbitration before

resorting to court proceedings.

    'Trade successfully with Indonesia' refers to the support that Atradius

itself gives foreign exporters to Indonesia, through its debt collection arm,

specialising in the amicable debt resolution, and credit insurance giving peace

of mind to those exporters seeking to establish valuable trade relationships

while avoiding cash flow problems.

    The report can be downloaded from Atradius' website

http://www.atradius.com, where you can also register to attend the free webinar

[http://global.atradius.com/indonesia-webinar.html ].

    About Atradius

    The Atradius Group provides trade credit insurance, surety and collections

services worldwide, and has a presence through 160 offices in 45 countries.

Atradius has access to credit information on 100 million companies worldwide

and makes more than 20,000 trade credit limit decisions daily. Its products

help to protect companies throughout the world from payment default risks

associated with selling products and services on credit. http://www.atradius.sg.

    SOURCE: Atradius N.V.