Hong Kong-based marketing agency Promotional Partners Group Ltd (PPGL) has been selling promotional gifts and premiums around the world since 1975. In recent years, it started focusing on emerging markets such as Indonesia.
“We have [had] great success in the United States, Europe and South America for many years,” said PPGL Business Development Manager Lery Ho, who noted that Indonesia’s economy is the world's 16th largest, and that the country has nearly 240 million people, making it the fourth-most-populated country in the world. Which is why Mr Ho will be taking part in Lifestyle Expo in Jakarta, a Hong Kong consumer-product promotion organised by the Hong Kong Trade Development Council (HKTDC).
Next month’s Lifestyle Expo, 20-22 March, will be the third such event in Jakarta. The expo promotes trade between companies from Hong Kong and new markets worldwide, with previous Lifestyle Expos held in Budapest, Hungary, Mumbai, India, Warsaw, Poland and Istanbul, Turkey.
PPGL first exhibited at Lifestyle Expo in Jakarta last year. “We had success in 2013, and believe we can be more successful in the Indonesian market in the future. The show is the gate to the market.”
Room to Grow
Ratna Harjana, Consul (Economy), at the Consulate General of the Republic of Indonesia in Hong Kong, has been working to foster closer economic relations between Hong Kong and Indonesia, showcasing Indonesian art and cultural exhibitions, product promotions and organising business workshops on Indonesia’s market potential.
More than a massive domestic market, the Indonesian population, according to Ms Harjana, boasts a large, young, productive and competitive labour force. “I believe that the relationship between Indonesia and Hong Kong will continue to become more robust in the future.”
Indeed, trade ties between Hong Kong and Indonesia remain strong, with trade in 2013 totalling more than US$5 billion. Ms Harjana cited recent figures from the Hong Kong Trade and Industry Department, which showed that Indonesia was Hong Kong's 19th largest trading partner, 23rd largest domestic export and 18th largest market for re-exports. And Hong Kong was the ninth largest foreign direct investor in Indonesia last year, according to the Indonesian Investment Coordinating Board report.
Rising Middle Class
“Indonesia has several factors that make it an attractive destination for investment and business opportunity,” said Angeline Suparto, founder of the Angeline Suparto Law Corporation. “In addition to the vast volume and variety of natural resources that are present in the country, and a young and growing middle class with increasing disposable income, the stable political environment provides many sectors with excellent opportunities to enter the Indonesian market.”
Ms Suparto specialises in advising Hong Kong companies seeking to invest in Indonesia or establish a presence in the island nation. She has observed new trends in the types of industries looking to set up in Indonesia. “In addition to the traditionally popular mining, manufacturing and energy sectors, we have seen an increasing number of service-oriented firms enter the Indonesian market, such as logistics, international food and beverage operators and retail brands,” Ms Suparto said.
When advising clients about the country’s potential, Ms Suparto also points out the challenges involved in setting up business in Indonesia.
“Indonesian laws and regulations can be very different from those of the home countries of foreign companies,” she said, adding that it’s important to understand the local culture.
Looking to Hong Kong
Indonesian businesses seeking to expand their markets overseas can look to Hong Kong. Miswan Nawawi, Bank Rakyat Indonesia’s (BRI) Chief Representative in Hong Kong, is working to ensure that his Indonesian customers see Hong Kong as a starting point.
“In 2014, I want to focus on trade and finance,” said Mr Nawawi, who took up his post in Hong Kong in 2012. “I want to open the connection between customers in Indonesia and help them connect with suppliers and buyers in Hong Kong,” he said, noting the growing trade between the two economies, as well as the potential of the mainland market. BRI has had a presence in Hong Kong since 1995.
Meeting Global Standards
Ms Harjana also believes that there is plenty of room for Indonesia and Hong Kong to cooperate. She added, however, that Indonesian business looking to Hong Kong must focus on raising the quality of their goods and services.
“They need to improve their abilities in producing its goods and services up to the international standard, so they can compete with others,” she said. “They need guidance and lessons on how to do that, and to have many experiences in international events.”