Jakarta (ANTARA) – A total of 14 leading Indonesian companies participated in the Africa’s Big 7 business exhibition, which took place at the Gallagher Convention Center, Johannesburg, South Africa, from June 18-20, 2023.
The participation of business players from Indonesia in the annual business event was appreciated by the Charge d’Affaires ad Interim of the Indonesian Embassy (KBRI) in Pretoria, Victor Josef Sambuaga, when he delivered the opening remarks for the Indonesian Pavilion at the exhibition.
“I am very grateful and appreciate the efforts of these companies in supporting our main shared goal, which is to open new markets and increase market access and promote Indonesian products in South Africa to enhance trade relations between the two countries,” he said, as conveyed through a written statement by the Indonesian Embassy in Pretoria on Monday.
Victor further explained that the challenge of penetrating the South African market and surrounding countries with Indonesian products is not easy because, unlike products from European and other countries which are charged relatively lower fees, Indonesian products are still subject to quite high tariffs.
“It is a challenge, of course, for Indonesian products to enter the market because the South African government still imposes a relatively high tariff of around 0-30 percent for food products,” he stated.
Head of the Indonesian Trade Promotion Center (ITPC) Johannesburg, Tonny Hendriawan, said that Indonesia’s trade performance with South Africa in the 2020-2022 period showed a positive trend, although the figures for the January-April 2023 period were still tending to stagnate.
Total trade between the two countries increased by 60.6 percent from US 1.3 billion (around Rp19.5 trillion) in 2020 to US 3.25 billion (around Rp48.8 trillion) in 2022, supported by an increase in export value of 38.07 percent.
However, Indonesia’s export performance to South Africa in the January-April 2023 period was relatively lower compared to the same period in 2022, dropping from US 330 million (almost Rp5 trillion) to US 294 million (around Rp4.4 trillion).
Despite this, the Indonesia-South Africa trade balance in the January-April 2023 period generally reached a value of US$554 million (around Rp8.3 trillion).
(The Indonesian Pavilion was present, showcasing various food and beverage products from the country during the “Africa’s Big 7” exhibition in Johannesburg, South Africa, from June 18-20, 2023. (ANTARA/HO-KBRI Pretoria)
Tonny explained that the export of Indonesian processed food products to South Africa in the last two years still needs to be continually optimized because the value remains below the market potential that should be achieved.
In 2021, the export value of Indonesian processed food products to South Africa reached US 429 thousand (around Rp6.4 billion), while in 2022, it reached US 320 thousand (around Rp4.8 billion).
For beverage products, an export increase of 37 percent was recorded, rising from US 22.9 thousand (around Rp 343.6 million) in 2021 to US 31.5 thousand (around Rp472.7 million) in 2022.
Observing the trend over the last two years regarding the export of processed food and beverages to South Africa, Tonny hopes that the various Indonesian products present at the Africa’s Big 7 exhibition this time can increase the market share of these products and create business opportunities for market expansion in South Africa and the surrounding countries.
“There are many challenges to penetrating the Indonesian product market, including the issue of high entry tariffs and the importance of studying local consumer behavior, as well as local competitors and those from other countries. However, we are optimistic that Indonesian products will still have a chance and potential to enter this market because several food products from Indonesia have already made it into South Africa,” he said.
Prominent names such as PT Rax Canning, PT Mayora Indah Tbk, PT Kapal Api Global, PT Sarimurni Abadi (Momogi), and PT ABC President attended the Africa’s Big 7 exhibition directly.
Meanwhile, PT Orang Tua Group, PT Monde Mahkota Biscuits, PT Manohara Asri (Mahaghora Group), PT Indofood Sukses Makmur, Kalbe International, PT Kaldu Sari Nabati Indonesia, PT Pulau Sambu (Kara), and Orang Tua Group with products already in the South African market, along with PT Kapiten Nusantara which did not attend in person but displayed product samples at the Indonesian Pavilion.
Africa’s Big 7 is an annual business exhibition held in the South African Metropolitan City of Johannesburg.
Approximately 3,500 business players, ranging from food and beverages, catering, retail, hospitality, sports, and textiles from 37 countries, were recorded as attending the event, which was celebrating its 20th edition in 2023.
