West Java Boosts Footwear & Garment Export To Brazil

BANDUNG: West Java businessmen are poised to increase the export of footwear and textile and textile products in Latin America, following the growing demand for such products in recent years.

Chamber of Commerce and Industry (Kadin) Vice Chairman Dedy Widjaja said the export performance of manufacture sector is quite promising and businessmen have the opportunity to utilize such momentum to boost export in Latin America, particularly Brazil.

“However, West Java Businessmen should make its product more superior compared to its peers from Latin America that also exports their product to Brazil,” he told Bisnis yesterday.

Indonesia and Brazil had agreed to increase trading and investment. Such agreement provides export opportunity to Latin America through Brazil as the main entrance.

Brazil as one of the members in Mercosur, the largest trading bloc in South America, may become the main entrance for West Java products to reach several countries in Latin America such as Argentine, Paraguay, and Venezuela.

Brazil’s economic condition is currently stable since the country has conducted massive industrialization but the export market to Brazil has not yet optimized.

“We can develop the agreement for aviation industry products, military equipments, and agribusiness, particularly beef. However, don’t let the import balance higher than export,” he said.

The data from Bank Indonesia shows that the export of West Java products to Latin America grew 20.05% as of the end of third quarter 2011 with total export value as much as US$320 million.

The entrance

However, the majority of those export products were traded to US. Such figure was more favorable than 1.2% growth in the second quarter 2011.

“The growth of trade volume may not too significant in initial phase but it’s important since Brazil could be the entrance for market expansion to the countries in Latin America.”

The data from the Ministry of Trade shows that the trade performance between Indonesia and Brazil experienced surplus US$3.2 billion, significantly higher compared to US$1.1 billion in 2006.

In 2006, the trade balance between the two countries experienced surplus US$111.1 million but then suffered deficit US$93.7 billion in 2008, US$382.7 in 2009, and US$198.5 billion in 2010. Indonesia experienced surplus US$153.4 million in January-August 2011 or 44.5% higher than the position in January-August 2010.

Head of West Java Investment and Promotion Coordination Board (BKPPMD) Yusuf Wibisana had previously said that there was no investment realization from Brazil in West Java region.

However, he is optimistic that the promotion effort will be able to increase the trade balance between Indonesia and Brazil.

“Several businessmen from Brazil need manufacturer products from West Java since the domestic sector is far stronger than the sector in Brazil,” he added. 


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