A forum for Canberra exporters to network, share knowledge and expand their export activities

A Joint ACT Exporters’ Network and Australian Indonesia Business Council Seminar held on 11 November 2010.

Peter Dawson

 The Manager of the Exporters’ Network, Dr Pam Faulks opened the seminar and introduced Peter Dawson, the immediate past Chair of the ACT Branch of the Australia Indonesia Business Council (AIBC) Peter outlined that Indonesia has a population of around 230 million and the Indonesian economy is growing at over 6% expected to reach 7% by 2014. It is a stable democracy with a free press and 90% of the population are Muslims.  He then introduced the speakers.

 Dr Miles Jakeman provided a comprehensive analysis of issues around security, safety and health when travelling in Indonesia. He outlined the possible threats including terrorism, natural disasters, crime, health (e.g. SARS), protests and commercial espionage. He pointed out that, although the Travel Advisory issued by DFAT rates Indonesia at the second highest threat level some people regard this as a “risk averse” approach and Australian Embassy staff remain in place. He set out some points to bear in mind when moving around that should minimise any risks both in relation to the possibility of a terrorist incident and more ordinary threats such as bag-snatching or other criminal activity. Registering with the Embassy, being informed about the current situation and being aware of one’s surroundings and having a “tracking” (e.g. phone-in) system in place were some of the points to remember. It was important also to avoid giving offence by eating in front of people who were fasting or reacting to normal daily situations such as early morning noise, dressing provocatively.  Carry a mobile phone with key contacts programmed in and a separate list of numbers and carry two wallets.

Greg Corra gave an account of his company’s approach to building its export business with particular reference to the Indonesian market. Inland Trading Company (ITC) currently exports Australian wine to 34 countries.  Greg mentioned the need for good market research and careful selection of in-market partners. Follow-through on promises and relationship building were essential, he said. He saw the Indonesian market as holding considerable promise for his company, which is already exporting full container quantities into the market. Finding and appointing representatives had taken significant effort but was now paying off.  Regulatory and documentation requirements in the market were complex and demanding but the company accepted this as a “market reality” having in mind actual and potential sales. It was useful to have the right partners in-country to help deal with the complexities of the market including regulations and documentation. Greg pointed out that Indonesia’s proximity to Australia is both a competitive advantage and a significant convenience factor for his company in regard to servicing the market.

Peter Dawson spoke on behalf of John Campbell, the CEO of AustAsia Milling Company, who was unable to make his presentation due to an industrial accident that had occurred at the mill. He asked Peter Dawson to make the following points Doing business in Indonesia requires:

¨      Patience in building relationships with potential customers and especially potential representatives; also in dealing with complex bureaucratic requirements which are a feature of this market

• Persistence in following through with partners and prospects, being consistent and always delivering on promises
• Relationship building which needs care and sensitivity as well as time
• Support to representative and customers including regular visits – John visits Indonesia at least four times a year.

Peter mentioned that AustAsia Milling faced formidable competition from the entrenched firm, Bogasari, a member company of the Indofood Group that operated the biggest flour mill in the world. Great service and tailored products were the key competitive factors for his company. Peter also mentioned his very positive experiences in working closely with Indonesian professionals. Differences in cultures including religious affiliation did not pose barriers to good relationships.