Jakarta. Indonesia Eximbank or Lembaga Pembiayaan Ekspor Indonesia (LPEI) is encouraging the country’s exporters to tap the African market amid global economic slowdowns.

At an Africa-focused business forum at the Trade Expo Indonesia (TEI), local exporters received calls to understand the market potential. Indonesia Eximbank also urged businesses to access the financing facilities it offers to expand to the non-traditional market.

Indonesia Eximbank economist specialist Romadhon Falaqh said that the region held attractive growth forecasts. The Egyptian economy is expected to expand 5.13% this year, with Nigeria and South Africa seeing 4.2% and 1% growth, respectively. Africa accounts for only around 3% of Indonesia’s exports, but it is showing positive trends. Between January and August, Africa-bound exports rose 7% year-on-year (yoy).

“The trend is very positive. Even with all kinds of international unrest and global conditions that are not very supportive, we can continue to penetrate the market in Africa,” Romadhon told the conference.

Efri Yenni, the head of the Indonesia Trade Promotion Center (ITPC) in Johannesburg, said that the country’s exports to South Africa had risen 56.43% yoy in August. Indonesian businesses have multiple ways to enter the market, be it selling directly to consumers, using digital platforms, or collaborating with local importers and distributors.

"Business actors need to conduct market research first to identify product opportunities in South Africa, including studying the prices of similar products, packaging characteristics, and appropriate distribution channels," Efri said.

Efri went on to say that partnerships with local businesses can be worth a try. They can pursue semi-finished goods processing in South Africa, although this would require them to still pay attention to the customs regulations and rules of origin.

Financing access also remains key in this expansion.

Agnes Rahadian, Department Head of NIA, Business Ecosystem & Partnership at Indonesia Eximbank, said exporters could take advantage of the Penugasan Khusus Ekspor (PKE), or National Interest Account (NIA), financing program.

He explained that LPEI currently offers nine special export assignment programs designed to address the diverse needs of Indonesian businesses. The programs are aimed at supporting small and medium-sized enterprises, expanding exports to non-traditional markets, and helping strategic national industries expand their presence in global markets.

For information, NIA is a program that provides financing, guarantee, and insurance facilities for export transactions or projects that are commercially difficult to carry out, but have strategic value for the national economy.

Agnes added: “Beyond financing, LPEI also provides market information and facilitates stronger partnerships to help Indonesian businesses identify and capitalize on opportunities in Africa. These combined efforts are expected to support Indonesia’s export diversification while strengthening the competitiveness of Indonesian products in the global market.”
 

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