The Regional Business Forum will encourage collaboration and synergy between businesses and local governments in the development of superior products, as well as price stabilisation and food security through efficient and effective distribution.

The Indonesian Chamber of Commerce and Industry (Kadin) in collaboration with the Association of Indonesian Regency Governments (APKASI), the Ministry of Trade, the Ministry of Home Affairs and the National Food Agency, held the Regional Business Forum (FORBISDA) in Surabaya on 19 September 2024. Themed ‘Improving Inter-Regional Trade and Business to Maintain Price Stability and Food Security as well as Sustainable Business Collaboration’, this activity aims to increase collaboration and synergy between regions in developing superior products, as well as creating price stability and food security through effective and efficient flow of goods distribution, especially in Eastern Indonesia.

Representing the Minister of Trade, Zulkifli Hasan, Director General of Domestic Trade of the Ministry of Trade, Moga Simatupang said that the need for inter-regional trade still needs to be optimised in order to maintain price stability and contribute to food security. Therefore, it is important to encourage collaboration between stakeholders to increase efficient inter-regional trade. ‘We appreciate the initiative of Kadin Indonesia, APKASI, and the National Food Agency in improving synergy and inter-regional trade through this Regional Business Forum. It is hoped that this forum can maximise coordination between the government and the business world in order to increase trade between regions in accordance with their respective potential and superior products so as to maintain price stability and food security,’ said Moga.

Chairman of Kadin Indonesia, Arsjad Rasjid, said that every region in Indonesia, especially Eastern Indonesia, has diverse potential, including in terms of commodities and regional superior products that show significant economic advantages and competitiveness in domestic and international markets. ‘As the parent of a national business organisation, we see that there are various potential superior products of East Java and Eastern Indonesia that always need to be improved optimally. Thus, challenges related to sub-optimal distribution and inaccurate recording need to be resolved together,’ Arsjad added.

According to Arsjad, these challenges pose obstacles to trade openness between regions, including difficulties in monitoring product travel, hoarding of goods, price uncertainty, and inefficient distribution. Inaccurate records also hamper market potential identification, demand trend analysis, and programme evaluation.

Referring to data from the Central Statistics Agency (BPS) for 2022, Jember Regency, East Java, produces 139,521 tonnes of tobacco, Buru Regency, Maluku, produces 2,850 tonnes of cocoa, and Nabire Regency, Papua, 142,885 tonnes of palm oil. Then, Sumbawa Regency, West Nusa Tenggara (NTB), produced 474,007.67 tonnes, and Manggarai Regency, East Nusa Tenggara (NTT) produced 9,581 tonnes of coffee.

Sarman Simanjorang, Deputy Chairman for Regional Autonomy Development of Kadin Indonesia, said the Regional Business Forum focuses on improving the economy of Eastern Indonesia by bringing together regional heads to exchange information related to each other's superior products that can be traded with each other. In addition, it brings together regional heads with the business sector to encourage the absorption of regional commodities. ‘Eastern Indonesia has great trade potential, where based on BPS data in 2023 shows that the Eastern Indonesia region accounts for 20% of the total inter-island trade in Indonesia. So, Forbisda will produce a framework for inter-regional cooperation for product development, effective and efficient distribution plans, and increased collaboration between business people in Eastern Indonesia,’ he said.

Adik Dwi Putranto, Chairman of the Kadin of East Java Province, added that collaboration and synergy through the Regional Business Forum can improve the competitiveness of regional superior products in local, regional, national, and international markets. ‘To increase economic growth, trade between provinces must be more open. East Java Province in this case takes a strategic role as a support for trade between Eastern Indonesia regions,’ he said.

Representing the Acting Governor of East Java Adhy Karyono, the Acting Regional Secretary of East Java, Bobby Soemiarsono welcomed positively and hoped that the Regional Business Forum would strengthen collaboration between all stakeholders, starting from the central government, regional governments, and the business world to provide price stability and food security to increase trade flows between regions. ‘With this forum, it is also expected that innovative ideas will emerge that bring progress in increasing competitiveness and strengthening the production and distribution of goods so that it will encourage the growth of local businesses for the strengthening of the regional economy,’ he said.

In line with Bobby, representing the Chairperson of Apkasi Indonesia Sutan Riska Tuanku Kerajaan, Chairperson of the Energy and Mineral Resources Division of Apkasi and Regent of North Morowali, Delis Julkarson added, hopes for collaboration and synergy between local governments and business actors between regions in Eastern Indonesia. ‘We hope that Forbisda can be a bridge for resolving trade barriers between regions, as well as increasing collaboration between local governments and business actors, especially in Eastern Indonesia,’ said Delis.

In this series of Forbisda activities also signed several Memorandum of Understanding (MoU) between PT Sumber Yalasamudra Banyuwangi and UD. Hidup Jaya, PT Somawi Surya Semesta with PT Berkat Mandiri Proteksindo, and PT Juma Berlian with Melbourne Wealth Group, and GAPERO East Java & PT Eratatel Prima. All of these MoUs are business deals with a total commitment of almost IDR 773 billion, which will help boost the economy of eastern Indonesia.