Jordan has great potential for penetration of Indonesia’s superior products, such as coffee, fruit products and textiles, given its position as the center of the Middle East market and re-exports to the US and European markets, with a market potential of up to 1 billion people “. Likewise the Ambassador Indonesia in Amman Andy Rachmianto at the keynote address in the Webinar activity entitled “Targeting the Potential and Opportunities of the Indonesian Product Market in Jordan” held by the Indonesian Embassy in Amman on June 23, 2020.
This webinar discusses comprehensively about the development of current economic conditions and the situation in Jordan, including opportunities and challenges for the entry of Indonesian products into the Jordanian market. Present as speakers, including Mr. Sutiyoso as an advisor to the Indonesia-Jordan Business Council (IJBC), Ms. Mayra Andrea as President of IJBC, Chair of the OCT, OKI, Fachry Thaib, and Ms. Dyah Asmarani as Head of the Center for Regional Policy Studies and Development (P2K2)) of the Asia-Pacific and African Region Ministry of Foreign Affairs of the Republic of Indonesia. More than 160 participants from Indonesian businesses and entrepreneurs attended the webinar.
Ambassador Andy identified a number of Indonesia’s main products that appeared to be able to compete in the Jordanian market, including coffee, sea products, food products, and spices. “Indonesian food products are easily accepted by the Jordan Market, in addition to having excellent quality, as well as being equipped with halal certification,” Ambassador Andy continued.
In his presentation, Mr. Sutiyoso stressed that at present “there is very good momentum for Indonesian businesses to reopen trade interactions with Jordan and to penetrate markets quickly and accurately to be able to compete with global competitors.” Sutiyoso added that according to him Indonesia needs to start encouraging penetration of Indonesia’s leading industrial products such as strategic and manufacturing industries, cement, and MSME products.
Continuing the presentation of Mr. Sutiyoso, Chair of the Middle East Chamber of Commerce and Industry, Fachri Thaib also explained about the potential penetration of Indonesian MSME products into the Middle East market, especially Jordan. “MSME products that are currently flooding the Middle East market are generally food products, especially in the Saudi Arabia region, while for the Jordan market, Indonesian products still face obstacles for high tariffs, making them less competitive than products from other countries,” said Fachri.
The President of IJBC, Mayra Andrea, is optimistic that Indonesian products can still compete with competitors in other countries in Jordan. “The Jordan market is still very potential for the entry of Indonesian products such as charcoal shisha (middle eastern cigarettes), palm oil, and rubber products”. In addition, Mayra also expressed the opportunity to enter Indonesian products to meet the needs of renewable energy, such as solar panels, which are currently the focus of the development of the Jordanian government. In addition, Mayra also supports the entry of strategic industrial goods and heavy equipment specifically to support the post-conflict development process of a number of Middle Eastern countries.
Meanwhile, the Head of the Center for Policy Research and Development at the Ministry of Foreign Affairs of Asia Pacific and Africa, Dyah Asmarani, delivered the results of an analysis of Indonesia’s commodity export opportunities carried out using the Modified Trade Complementarity Index (TC) and Constant Market Share Analysis Method (CSMA) based on data basis for 2018. “Through an analysis using these two methods, a number of potential Indonesian commodity candidates found for Jordan’s market share include medical raw materials, motor vehicles, palm oil, wood charcoal, paper, paste products, garment products, cellular telephone networks, wheat , and coffee “.
Ambassador Andy acknowledged that high import duties were still a major obstacle in encouraging the entry of Indonesian products into Jordan. Therefore the Preference Tariff Arrangement (PTA) agreement is a task that must be completed by the government in reducing trade barriers between the two countries. “The Indonesia-Jordan PTA Agreement is the key to increasing Indonesia’s trade to Jordan, which in the meantime talks have been delayed due to the COVID-19 pandemic”. Ambassador Andy added that without the PTA agreement, Indonesian products would be less competitive than products from other countries.
The Indonesian government through the Indonesian Embassy in Amman continues to strive to accelerate PTA discussions by coordinating with related parties in Jordan, including with the Jordanian Embassy in Jakarta. “The Indonesian Embassy in Amman is trying seriously and sincerely