Central Java SME Office Successfully Binds Business Cooperation at Indonesia Expo 2018 in Saudi Arabia

LOI-Arab


Two SMEs from Central Java will export processed fruit products and ceramics to Saudi Arabia

The Indonesian government in collaboration with the Government of the Kingdom of Saudi Arabia, recently held an Indonesia Expo in Jeddah, Saudi Arabia, November 28 to December 1, 2018.

From the Indonesia Expo event, the Office of Cooperatives and Small and Medium Enterprises (SME) of Central Java Province managed to tie several business partnerships which were marked by the signing of a letter of intent. The business collaboration was signed by two SMEs, namely PT Yuasa Food from Wonosobo, which offered food and beverage and Nuanza Porcelain from Boyolali which sells ceramic products.

Head of Central Java Cooperative and SME Office, Ema Rahmawati said, Yuasa signed a partnership with Irgy Group and a foreign investment company from Germany operating in Saudi Arabia. For the latter, the value of the business agreement is around Rp 22 billion to Rp 25 billion, for export of organic fruit chips.

Yuasa Food products include canned jengkol (dogfruit), canned stink bean (petai), canned botok seasoning, canned jackfruit, canned jackfruit chips, canned zalacca, and other fruit processed products.

While Nuanza Porcelain signed LOI with SAS group from Saudi Arabia worth Rp 2 billion for ceramic tile products.

There is also an agreement that is not marked by LOIs such as 30 Days Group which plans to invest Rp 2 billion to PT Yuasa. There are also several hotels in Saudi Arabia that plan to order ceramic gift products to Nuanza Porcelain

According to Ema, for the cooperation that has not been signed by the LOI, Saudi importers request product samples first in mid-January 2019 and after the sample has been approved, the number of orders will be determined.

Ema revealed, Indonesian SME products actually have great potential to be marketed in the Middle East, because their products are unique and rarely available in Arab countries.

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