The Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Arsjad Rasjid, is encouraging trade openness between regions so that regional superior products can have a broad market, both domestically and internationally.

‘Challenges related to less than optimal distribution need to be resolved together,’ said Arsjad at the Regional Business Forum in Surabaya, Thursday (19/9/2024).

Arsjad said that each region in Indonesia, especially eastern Indonesia, has diverse potential, including in terms of commodities and regional superior products.

Data from the Central Statistics Agency (BPS) in 2022 recorded that Jember Regency (East Java) produced 139,521 tonnes of tobacco, Maluku Regency produced 2,850 tonnes of cocoa, Nabire Regency (Papua) produced 142,885 tonnes of palm oil, and Manggarai Regency (East Nusa Tenggara) produced 9,581 tonnes of coffee.

Arsjad said that these potentials should be able to become significant economic advantages and have competitiveness in domestic and international markets.

On the other hand, the optimisation of regional superior products still has challenges related to sub-optimal distribution and inaccurate recording, so the challenges for trade openness between regions must be resolved together.

The challenges faced include difficulties in monitoring product travel and hoarding of goods. It also leads to price uncertainty and inefficient distribution, which hinders regional superior products from being recognised by the wider community. Inaccurate records also hamper the identification of market potential, analysis of demand trends, and programme evaluation.

‘There are many potential superior products in East Java and eastern Indonesia that need to be optimised,’ he concluded.