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Medan, July, 29th 2024 - North Sumatra has become the backbone of exports in the Sumatra region, ranking as the third-largest province in export value after the Riau Islands and Riau. North Sumatra's exports are dominated by animal/vegetable fats & oils products, reaching 182 countries.
Data from the Central Statistics Agency (BPS) shows that North Sumatra's export value reached USD 10.24 billion, Riau Islands USD 17.39 billion, and Riau USD 18.96 billion. In terms of GDP, North Sumatra ranks 5th as a contributor to Indonesia's GDP with a contribution of 5.12% in 2023. These data indicate that North Sumatra plays a significant role in the national economy, both in terms of exports and GDP contribution.
Recognizing the importance of North Sumatra's role in the national economy, the Indonesia Eximbank (LPEI) continues to support and enhance the export potential of North Sumatra province by holding a meeting forum with top exporters of North Sumatra at the "LPEI Export Forum and Socialization of the 2024 Special Export Assignment Program" on Thursday (25/7). This event aims to boost North Sumatra's exports by providing an export outlook so that exporters can see future export prospects. The event was successfully organized through collaboration between LPEI and the Directorate General of Budget Financing and Risk Management (DJPPR) of the Ministry of Finance, North Sumatra Customs, and the Provincial Department of Industry, Trade, Energy, and Mineral Resources of North Sumatra.
Director of State Financial Risk Management of the Ministry of Finance, Heri Setiawan, said that to boost North Sumatra's exports, the government assigns the Indonesia Eximbank (LPEI) to provide financing, guarantees, and/or insurance for export activities that are commercially difficult to carry out but are deemed necessary to support national export policies.
"Through the PKE, LPEI, as an extension of the Ministry of Finance, helps businesses overcome the obstacles they face, particularly exporters from North Sumatra. Exporters can utilize various Special Export Assignment Programs according to their export profiles/characteristics, including the SME PKE designed for export-oriented SMEs, Regional PKE for exporters aiming to penetrate non-traditional export markets, Trade Finance PKE with trade transaction schemes, as well as Pharmaceutical and Medical Equipment PKE for exporters in the health industry," said Heri Setiawan.
Chief of Region LPEI, Anton Herdiyanto, explained that LPEI is proactive in providing solutions and full support to North Sumatran exporters, enabling them to increase their capacity and capabilities and build trust from other countries.
Currently, North Sumatra has 737 exporters, consisting of 555 exporters with export values below Rp 50 billion, 137 exporters with export values of Rp 50-500 billion, and 45 exporters with export values above Rp 500 billion.
"At the national level, North Sumatra's export value is among the top 10 provinces with the 7th largest number of exporters in Indonesia. This significant contribution is the result of solid collaboration between ministries, agencies, businesses, and all elements of North Sumatra's export ecosystem," said Anton.
Market Intelligence & Leads Management Chief Specialist LPEI, Rini Satriani, explained that around 80% of North Sumatra's exports are distributed among animal/vegetable fats & oils products, chemicals, food industry residues & waste, rubber & rubber products, and soaps & cleaning agents. North Sumatra's products have reached 182 countries, with the top five destinations being China, Singapore, the United States, Malaysia, and India. This is driven by an increase in the number of buyers of North Sumatran export products since 2022, with 32.29% being loyal buyers.
Rini analyzed that North Sumatra's export growth will remain stable until 2025. Several leading products from North Sumatra have high export value opportunities worldwide, such as coffee, tea, and spices valued at Rp 14.09 trillion, fruits valued at Rp 8.9 trillion, plastic products and plastic goods valued at Rp 58.46 trillion, essential oils, fragrances, and cosmetics valued at Rp 22.12 trillion, processed meat, fish, crustaceans, and mollusks valued at Rp 15.69 trillion, and wood products valued at Rp 39.5 trillion.
In a separate session, LPEI also introduced a marketplace called Komodoin to export-oriented businesses in North Sumatra. Komodoin, which will be launched soon, will assist and facilitate export-oriented businesses by providing research-based information and helping exporters reach new buyers in the global market so that Indonesian products can go global.
Head of SME’s Advisory Services Division LPEI, Lutpi Ginanjar, who explained the Komodoin marketplace to export-oriented SMEs, also gathered input from SMEs already engaged in exports to optimize LPEI's support in enhancing the role of North Sumatran SMEs as the backbone of Indonesia's economy.
Media Liason:
Chesna F. Anwar
Corporate Secretary – Indonesia Eximbank
Ph.: (021) 39503600
Email: corpsec@indonesiaeximbank.go.id
Web: http://www.indonesiaeximbank.go.id
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