VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Consulate General of the Republic of Indonesia (KJRI) in Hong Kong helps expand export opportunities for products of micro, small, and medium enterprises (MSMEs) from Bali because of the large market potential both in terms of consumers and the convenience of import duties. Trade Consul of the Indonesian Consulate General in Hong Kong Ayu Wulan Sagita, during the Ministry of Finance (Kemenkeu) One Bali discussion related to MSME exports in Denpasar, Tuesday (15/7/2024), said one of the marketing tricks is through packaging design because the Hong Kong market segmentation is very visual. She advised 127 MSME owners in Bali who attended the discussion forum to market products that have uniqueness or are distinct from other products. She gave an example of luwak coffee products that are expected to highlight exotic coffee products if packaged attractively.

On that occasion, she also revealed the increasing export potential to Hong Kong due to the absence of tariff duty for imports or exports. She mentioned that there are only four products subject to excise, namely liquor with alcohol concentration above 30 percent, tobacco, hydrocarbon oil, and methyl alcohol.

As for transshipment cargo, it is exempt from import and export licensing requirements as long as shipping companies, airlines, and transport companies are registered with the Department of Trade and Industry. There are also 10 main export commodities to Hong Kong, namely coal, jewelry, gemstones, precious metals, cigarettes and processed tobacco, electronics, footwear, textile products, processed fish, edible-nest swiftlet, and processed food and beverages.

In addition, Indonesian MSMEs that are exporters also have diverse market segmentation that need adjustments according to the target market. The target consumers are local residents, tourists, and the Indonesian diaspora. There are around 7.5 million Hong Kong residents in 2023, 100 percent of whom live in urban areas with a high per capita income of 50,889 US dollars, and there are 34 million tourists in 2023. Meanwhile, the number of Indonesian diaspora reached 168 thousand in 2023, 95 percent of whom worked in the informal sector or as domestic assistants.

Not only that, the internet penetration rate of the local community is also relatively high, reaching 93 percent, which enables access to information. Additionally, more than 98 percent of the local products are re-exported, considering that Hong Kong is also known to be the center of international trade.