Expanding Malaysia's Trade in Indonesia Through The Second Tier City

FRIDAY, MAY 10, 2019, KUALA LUMPUR: As part of Malaysia External Trade Development Corporation’s (MATRADE) strategy to expand Malaysian companies’ footprint in Indonesia, the trade promotion agency recently organised its signature export mission, Export Acceleration Mission (EAM), to one of Indonesia’s second tier cities - Makassar.

The EAM, which took place from 23 to 25 April 2019 saw 17 Malaysian companies from various sectors such as Food & Beverages, Lifestyles, Construction Services, Healthcare and Textiles & Apparels participated in the mission. The EAM provided an opportunity for the local companies who are Small and Medium Enterprises (SMEs) to introduce their brands to potential buyers and explore the business opportunities in Makassar.

According to MATRADE’s Director of ASEAN & Oceania Section, YM Raja Badrulnizam Raja Kamalzaman, there are still a lot of untapped opportunities within Indonesia which has a vast population of 260 million people. “As one of the centres of civilization in Indonesia, Makassar, located in South Sulawesi, has adequate infrastructure and facilities. The city also plays a strategic role as the hub for transportation by land, sea and air and this is conducive to support trade activities. MATRADE sees Makassar as a gateway to penetrate the Sulawesi market which has a population of 18 million people,” Raja Badrulnizam said.

With an economic growth rate of 7 per cent annually, compared to 5 per cent for the rest of Indonesia, Makassar is a sought after city for investments particularly in areas such as agriculture, manufacturing, retail and hospitality. This may also translate into various export opportunities in these sectors.

Through MATRADE’s Jakarta office, the Malaysian SMEs at the EAM were matched with potential partners from South Sulawesi region. A total of 121 business meetings took place, resulted in over RM30.1 million of potential export value recorded. During the EAM, Malaysian companies were also exposed to the rules and regulations on doing business in Makassar. They attended a roundtable discussion with One-Door Integrated Investment Service Office (DPMPTSP) on business registration and investment opportunities in Makassar and National Agency of Drug (BPOM) on product registration procedures as well as with Lembaga Pengkajian Pangan Obat-Obatan dan Kosmetika Majelis Ulama Indonesia (LPPOM-MUI) on Halal products registration.

“Culturally, there are a lot of similarities between Malaysia and Indonesia. This creates a better market acceptance for Malaysian products and services in the market and gives Malaysian exporters an edge. The feedback we received from the 90 Indonesian companies that participated in this mission was very encouraging with many expressing strong interest to expand their collaboration with the Malaysian companies,” Raja Badrulnizam shared.

Moving forward, MATRADE will continue to build connections with industry players in targeted cities in Indonesia that can be matched with Malaysian SMEs. Malaysian companies who are keen to better understand the Indonesian market are urged to leverage on MATRADE’s Jakarta office. The office can be contacted via email at This email address is being protected from spambots. You need JavaScript enabled to view it..

Updated by Corporate Communication Unit

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