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Small businesses in Indonesia are keen on doing business with their South African counterparts, and are working with the country’s export-import state-owned entity to make this a reality.
A number of small businesses that City Press spoke to on the Indonesian island of Bali expressed a desire to export their products to South Africa.
Yuliani Djajanegara, a manufacturer of spa treatment products in Bali – the most popular of the more than 17 000 islands that make up the country – said he was keen to export to more foreign markets, especially South Africa, as doing so would serve as an entry point for his business to the rest of Africa.
Djajanegara, a pensioner who runs the business, called Bali Tangi, with his wife, said their spa products were already being exported to Australia and the Maldives.
He said the idea of exploring foreign markets would not have occurred to him had he not received government support, including a R3 million low-interest loan from the country’s export-import bank, Eximbank.
Another business, Chidehafu Group, which manufactures leather goods such as bags, belts, hats and sandles, has also been a recipient of state assistance – and has gone as far as supplying US fashion house and luxury goods manufacturer Calvin Klein with items.
Speaking to City Press from the business’ showroom and factory, deputy director Alisha Hantoro said a market like South Africa would be ideal for the business, which employs about 50 people.
The fact that its items were unaffordable for many locals, added Hantoro, was another reason to explore opportunities in South Africa. “We sell high-end goods, including exotic leather-like python skin, and they are not cheap. So, we have buyers from Europe who buy in bulk, and selling in South Africa would unlock a lot of potential for us.”
The factory receives its unrefined leather from a network of suppliers based elsewhere in Indonesia.
Hantoro said that although items made of cow leather had proved most popular, selling up to 17 000 units annually, orders for other types of leather – such as crocodile, lizard and goat – were picking up.
While both these businesses were trading before government intervention, their respective owners attest to the fact that the state has helped them to increase their footprint beyond Indonesia.
The Indonesian government has entities specifically mandated to assist small business – including one entity whose sole mandate is to offer guarantees for businesses in priority sectors that take loans from other state-owned entities or from commercial banks.
The government also provides protection to small businesses by not allowing foreigners to get involved in some sectors.
According to Randi Anwar, the director of business development at the country’s Investment Coordinating Board, Indonesia is the ninth safest country to invest in because of its credit rating status.
In addition, said Anwar, Indonesia had established a one-stop shop for all the red tape and compliance paperwork related to investing in the country, reducing a process that used to take 47 days to just three hours.
South Africa’s department of trade and industry, through InvestSA, has a similar vehicle in the form of the One Stop Shop initiative.
