Jakarta. The Indonesian Export Financing Agency (LPEI), also known as the Indonesia Eximbank, is encouraging more businesses from North Sumatra to ship its goods overseas.

The Central Statistics Agency (BPS) data showed that North Sumatra’s exports reached $10.24 billion. The province also made up 5.12 percent of the national gross domestic product (GDP) in 2023. 

To boost North Sumatra’s contribution, LPEI recently held a forum to encourage local businesses to reach global markets. The agency also has several solutions to help SMEs export their goods, including those specifically designed for small and medium enterprises (SMEs). According to LPEI’s chief of region Anton Herdiyanto, North Sumatra has 737 exporters to date. About 555 of them have an export value of under Rp 50 billion (around $3 million). Some 137 enterprises export between Rp 50 billion and Rp 500 billion worth of goods. The remaining 45 exporters have reached an export value of above Rp 500 billion.

“North Sumatra ranks 7th place when it comes to the top 10 largest exporting provinces in Indonesia. This is thanks to the solid teamwork between ministries, government agencies, businesses, and everyone else in North Sumatra’s export ecosystem,” Anton was quoted as saying in a press statement.

LPEI reported that animal/vegetable fat and oils, chemical products, food industry waste, rubber, soap and cleaning materials make up 80 percent of North Sumatra’s exports. What the province produces is already reaching 182 countries with China and Singapore among the top export destinations. 

According to LPEI’s market intelligence and leads management chief specialist Rini Satriani, North Sumatra’s export growth will remain stable until next year. Coffee, tea, and spices hold a large export potential worth up to Rp 14.09 trillion. The same goes for fruits (Rp 8.9 trillion) and plastic goods (Rp 58.46 trillion). Timber goods also have massive export potential at Rp 39.5 trillion.

LPEI also introduced its upcoming Komodoin marketplace to exporting businesses in North Sumatra. The soon-to-be-launched platform is set to provide well-researched data to exporting businesses so they can reach new buyers. Lutpi Ginanjar, the head of the SME’s Advisory Services, said that the upcoming Komodoin marketplace also sought inputs from SMEs so they could contribute more to the Indonesian economy.