A number of exporter in Indonesia is able to gain success in the global market. To win the battle in the tighter global market competition, exporter should prepare ammunition. In addition to preparation, business people should also be able to find a solution in the middle of the cease export constraints.
These constraints, if not immediately find the solution would have an impact on export performance and the development of the exporters. Here are the solutions how to facing the internal and external problems commonly experienced by exporters from SWA magazine.
Internal Barriers
• Tariff and non tariff is high so it will be increasing product selling prices.
• Lack of working capital to finance exports because the buyer pay after receipt the product
• Lack of skilled human resources avaibility
• Products that are less competitive than other countries products
• Buyers do not know the reputation of the exporter
• Lack of understanding of export procedures and business practices in international markets
• Lack of knowledge about the trends that favored foreign markets
External Barriers
• The rise of product counterfeiting and it affects sales
• Lack of support / intensive from the government in promoting exports of products and activities
• There is a policy that allows the export of raw materials such as rattan and wood raw affecting the price competitiveness of products in world markets
• transportation infrastructure or facilities that are less supportive of export activities
How to Deal It
• Exporters and buyers work together to find actors who make counterfeit products
• Inviting a buyer to the factory and provide standardized training
• Exporters in cooperation with the government rejected accusations of dumping
• Exporters borrow from a bank loan as working capital
• Conduct job training, courses to develop employee skills and to provide guidance with the Ministry of Industry and Trade
• Looking for export destination countries that do not impose standardization too high.
• Many search for references and information about emerging trends in other countries.
• Not afraid to innovate on the product so that products such as furniture unique combination of rattan and leather
• Predicting exchange rates of foreign currency prior to purchase and sale agreement
• Following the seminars and discussions about the export-import of the government held
By knowing and analyzing the problem, exporters will be able to find solutions to these problems.(WTD/MZ)
