International trade plays an important role in a country’s economic growth. Indonesia, as a country with a rapidly developing economy, has great potential to increase bilateral trade with other countries, including Finland.
Thus, it is important to explore Indonesia’s export potential to Finland and the efforts that can be made to expand the export market.
Data shows that Indonesia’s export market has China, USA and Japan as the top three markets. On the other hand, Finland is ranked 89th as Indonesia’s export market. However, this does not reduce Indonesia’s great potential to increase its exports to Finland.
In contrast, Indonesia is ranked 42nd as a country of origin for Finnish imports, indicating that there are opportunities to increase bilateral trade between the two countries.
Export diversification efforts are key in increasing bilateral trade between Indonesia and Finland. Currently, Indonesia has diversified its exports to Finland by sending various products, including Automatic Data Processing Machines, Portables, Computer Data Storage Units, and Fresh Papaya.
However, there is still great potential to increase exports of other products such as Nickel Matter, semi-bleached or bleached non-coniferous chemical wood pulp, and coffee.
Export diversification will help increase the competitiveness of Indonesian products in the Finnish market and reduce dependence on certain products. To achieve this, strategic steps need to be taken such as improving product quality, market expansion and product promotion in the Finnish market.
Apart from that, cooperation between the government and business actors from the two countries can also accelerate the growth of bilateral trade.
In the future, the main focus should be on diversifying exports of these products to further increase bilateral trade between Indonesia and Finland. With increasing demand for these commodities in the Finnish market, joint efforts to improve the quality and competitiveness of Indonesian products will bring significant benefits to both countries.