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Indonesia Must Boost Exports If It Wants to Become a Developed Country in 2045

The government is encouraged to improve export performance in order to accelerate the national economic recovery in the midst of the Covid-19 pandemic. The acceleration of exports is also able to realize the ideals of Indonesia as a developed country in 2045. “To accelerate the national economy while making Indonesia a developed country in 2045, the Jokowi government only needs to focus on increasing exports. Because exports will produce a lot of derivatives,” said Institute for Development of Economics and Finance (Indef) researcher, Agus Herta Sumarto, in a webinar titled Apbn Politics and Indonesia’s Economic Future, Wednesday (2/9/2020).
Agus detailed, the increase in exports will have a good impact on improving the quality of production by domestic industries. Considering industry players will be encouraged to produce products that meet export standards. In addition, the policy of increasing exports is also believed to encourage the realization of more competitive logistics costs. Because he assessed the cost of domestic logistics is still not competitive, so it is considered burdensome export actors. Agus added that efforts to boost export performance will also boost the country’s foreign exchange achievement. Considering foreign currency use transactions are increasingly soaring in export activity.
Previously, Minister of Trade Agus Suparmanto outlined 7 strategies of the Ministry of Trade (Ministry of Trade) to increase exports during the covid-19 pandemic.
The first export improvement strategy conducted by the Ministry of Trade is the development of human resources (HR) exports through education and training, coaching programs, curriculum development and training methods, promotion and cooperation of export training.
Second, market development and export information by disseminating export market information, preparation of export data and information, as well as services to businesses, as well as the creation of digital marketing applications.
Third, the development of export products by increasing the role of the Indonesia Design Development Center (IDDC), the development of export product brands, and the need for flashlights to develop export products, services and creative economy.
Furthermore, the fourth strategy is the development of promotion and Citra, which consists of the promotion of foreign trade trade trade and exhibition missions, promotion of export potential products, and imaging of export products.
Fifth, cooperation in export development of strategic sectors as well as utilization of service trade, activation of export development cooperation.
Sixth, trade representatives of trade attache (ATDAG) and Indonesia Trade Promotion Center (ITPC) can contribute to the report of trade promotion market opportunities, as well as communication with relevant K/L agencies in accredited countries, as well as associations and businesses.
The latter is by supporting the provision of working capital for SMEs ready to export, by initiating fiscal incentives for medium-scale businesses that will conduct export activities through the allocation of PKE funds channeled through the LPEI (Indonesian Export Financing Agency).

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