The Philippines has embraced a number of Indonesian brands in the past, including coffee and confectionery line Kopiko, doughnut franchise J.CO, Tolak Angin herbal supplement, and noodle brand Indomie.
Lured by the success of predecessors, more than 20 Indonesian brands are exploring deals with potential partners in the Philippines. They joined a recent virtual trade show hosted by business-to-business (B2B) platform Made in Indonesia in collaboration with the Indonesian Embassy in Manila and Consulate General in Davao City.
Mark Castro, secretary general of the Jakarta-based Philippines Business Club Indonesia, said Filipinos would welcome Indonesian brands, having embraced a number of products including the coffee and confectionery line Kopiko, doughnut franchise J.CO, Tolak Angin herbal supplement, and noodle brand Indomie. The club promotes trade and investments between the two countries.
He also cited that Indonesian convenience store chain Alfamart has 800 branches in the Philippines while the Citra group has a stake in Manila-based tollway operator Metro Pacific Tollways Corp.
Trade
The Philippines is a major export destination for Indonesia, which is the country’s seventh-largest trading partner. Exports from Indonesia has grown from $5.27 billion in 2016 to $6.83 billion in 2018, slightly moderating to $6.77 billion in 2019, and falling 13% to $5.89 billion in 2020 due to slow sales in the wake of the coronavirus disease (COVID-19) pandemic.
Still, Indonesia recorded a surplus of $5.3 billion in trade with the Philippines in 2020, while total trade between the two countries stood at $6.5 billion. Top exports include motor vehicles, coal and fuel, palm oil, paper, electric machine, diesel, cereal and flour, fertilizer, and pharmaceutical products.
“There is ample room to improve the economic relations of the two countries to create mutually beneficial trade relations,” said Widya Rahmanto, chargé d’affaires at the Embassy of Indonesia in Manila, in his keynote during the virtual trade show. He cited the need to improve logistics connectivity, ease import and export regulations, and promote collaboration among industries.
Rahmanto said Indonesia and the Philippines are committed to address these issues and further promote and facilitate trade, including in Mindanao.
Opportunities
Castro expects a rebound in Indonesia’s exports to the Philippines, noting opportunities despite the pandemic. “The Philippine market is ready to absorb Indonesian products, from the coffee you drink in the morning, the road and the tollway you take, the noodles that you eat, to the Tolak Angin that you can buy. They’re all Indonesian products that are accepted in the Philippines.”
Lazuardi Nasution, trade attaché of the Embassy of Indonesia in Manila, said he sees opportunities for Indonesia to export coffee, palm oil, marine and fishery products, paper, automotive products, motorbikes, processed foods, garments and apparel products, and natural and eco-friendly craft products to the Philippines.
He said Indonesian businesses should take advantage of online platforms like Shopee and Lazada to reach the Philippine market, noting the shift to online shopping will result in increased e-commerce transactions.
Some of the Indonesian brands seeking entry into the Philippines include: 2Tang (tea), PT Alam Sari Interbuana (spices), PT Cahaya Inti Putra Sejahtera (consumer goods), PT Gandum Mas Kencana (food service supplies), Garudafood (food and beverage), Gujati Group (herbal medicine, seasoning, sauces), Koperasi Produsen Gunung Luhur Berkah (coffee), PT Kopi Prima Indonesia (coffee), Mahorahora Bumi Nusantara (pure palm sugar), PT. Manohara Asri (snacks), PT Putra Mandiri (coffee), Ephraim (coffee), Mustika Ratu (beauty and wellness products), PT Rodamas Inti Internasional (consumer goods), Sila (artisan tea), UBM Biscuits (biscuits), PT Ultra Sakti (medicine), Roeparasa (instant seasoning), Amanda (brownies), and PT. Stanli Trijaya Mandiri (bread).