But as Sean Emmond, CITP, EDC’s Chief Representative for Indonesia, explained during a recent FITTskills Live session, opportunity is only the starting point.

“I think Indonesia is a fascinating market. Maybe not an easy market, but one of those markets where, if you invest in it, you can certainly find considerable success.”

That distinction was central to the session. A promising market is not automatically the right market. Businesses need to look past the headline numbers and assess demand, competition, regulations, buyer dynamics, local partners, payment considerations and their own internal capacity before committing resources.

For companies considering Indonesia, Emmond’s message was clear: success depends on doing the work before entering the market.

Start by understanding the scale and complexity

One of the first points Emmond emphasized was the size of the country itself. Indonesia stretches about 5,000 kilometres from end to end, roughly the distance across a continent-sized market. It spans three time zones, includes thousands of islands and is home to hundreds of languages.

That scale matters for international businesses because Indonesia cannot be approached as a single, uniform market.

Java, where more than half of the population lives, includes sophisticated urban centres with modern infrastructure. Other regions may have different levels of development, logistics capacity, customer behaviour and business requirements.

For businesses assessing the market, this means research must go deeper than national level statistics. A company needs to know where, specifically, its product or service fits. Selling into Jakarta may require a different approach than serving customers in another region. Bali, for example, has its own characteristics as a tourism driven economy, while Sulawesi is known as a major mining destination.

The actionable takeaway: define the geographic market before defining the market entry strategy. “Indonesia” is too broad to be the whole answer.

Look for opportunity in areas of national investment

Emmond identified four broad areas where international companies are seeing significant opportunity in Indonesia: infrastructure, cleantech and renewables, protein and agri-food, and digital industries.

Infrastructure has been a major driver of the country’s growth, with ongoing investment in roads, ports, airports, rail and logistics. Clean technology and renewable energy are also important areas of focus, especially as Indonesia looks to reduce its reliance on coal-fired power generation and invest in solar, wind and geothermal energy.

Agri-food remains a strong area of opportunity for companies with the right products, expertise or technologies. Food security is a critical priority for the country, even though parts of Indonesia, including Java, are highly fertile.

Digital industries are another major opportunity. Indonesia’s geography has made digital infrastructure especially important, helping connect the country across islands and regions. Investments in connectivity, e-commerce infrastructure and data centres are creating openings for companies with relevant technology, services or expertise.

The key lesson is not simply to chase high growth sectors. Businesses should look for the intersection between market demand, government priorities and their own capabilities. If a company’s offer aligns with national priorities such as food security, energy security or human capital development, it may have a stronger case for market entry.

Understand who really drives demand

In Indonesia, understanding the buyer landscape is essential.

Emmond explained that government and government linked entities play a major role in the economy. He noted that more than 50% of the economy is controlled by government or government linked entities, which means government priorities can have a direct effect on demand for certain products and services.

For companies selling into sectors such as electricity, oil and gas, mining or aerospace, working with state owned enterprises is likely. These buyers operate differently from private sector customers and may be influenced by national policy priorities, public sector procurement processes and state asset management decisions.

Private conglomerates are also significant. Emmond described Indonesia as home to large, sophisticated and well-run conglomerates that make up a substantial portion of GDP.

Selling to these companies may involve a very different process than selling to a state-owned enterprise.

The practical takeaway is to map the full buying environment:

• Who is the direct customer?
• Who influences the decision?
• Is the opportunity tied to a government priority?
• Are you selling to a private conglomerate, a state-owned enterprise or another type of buyer?

These questions should be answered before serious time and money are invested.

Prepare for strong competition

Indonesia’s opportunity also attracts competitors.

Companies entering the market may face strong local firms as well as regional and global competitors. Emmond pointed to the presence of Korean, Japanese and Chinese companies, along with firms from Western Europe and the United States.

That makes differentiation essential. International businesses should be prepared to clearly communicate why their product, service, technology or expertise is relevant to the Indonesian buyer.

A general value proposition will not be enough in a competitive market with established players.

Businesses should ask themselves what problem they solve, why their solution is credible, how it compares with local and international alternatives, and what proof they can provide.

Assess regulatory and certification requirements early

Regulation, documentation and certification are another important part of market feasibility.

Emmond noted that there can be a significant regulatory burden in Indonesia. While trade agreements can create preferential tariff opportunities, companies still need to understand the extent to which certification, documentation or compliance requirements apply to their specific offering.

For food exporters, halal certification is one of the clearest examples. Emmond advised companies looking at food exports to make sure they have access to halal certification before going too far down the path.

The broader point applies across sectors.

Before entering any new market, businesses should identify the certifications, documentation, approvals, tariffs, payment considerations and compliance requirements that apply to their specific product or service.

These factors are not administrative details to handle later. They can affect cost, timing, pricing, market access and feasibility.

Choose local partners carefully

Local partners, distributors and representatives can be critical to success in Indonesia.

“You will need a local partner,” Emmond said, describing this as a key element of market entry.

The right partner can help a company understand local conditions, engage with buyers, navigate business culture and build credibility. The wrong partner can create delays, misalignment or missed opportunities.

Companies should evaluate potential partners based on both market knowledge and their ability to work effectively with foreign companies. A partner should understand the local business environment, but also be able to communicate clearly, represent the company’s interests and support long term growth.

This is not a decision to rush. Partner selection should be treated as a strategic step in the market entry process.

Invest in relationships and presence

One of Emmond’s strongest takeaways was the importance of showing up.

In Indonesia, as in many emerging markets, a physical presence matters. Frequent market visits can help companies test assumptions, build trust, meet buyers, understand local dynamics and develop stronger relationships with partners, regulators and customers.

Emmond shared a comment he once heard from an exporter:

“If you don’t know the names of your business partner’s kids, it’s very unlikely that you’ll find success in the Indonesian marketplace.”

The point is not that every business relationship must become personal. Rather, trust is built through time, familiarity and repeated engagement. Companies that expect quick results from a distance may struggle. Those that invest in relationships are better positioned to build traction.

Emmond also highlighted the role of memorandums of understanding in Indonesia. While MOUs may sometimes be viewed in other markets as symbolic, he explained that in Indonesia they can function as a “license to engage.” They signal that two organizations know each other and are beginning a business relationship.

Investigate before you invest

Indonesia offers meaningful opportunities for international businesses, especially in sectors aligned with infrastructure, clean energy, agri-food, digital connectivity and national development priorities. But it is also a complex market where success depends on preparation.

The strongest lesson from Emmond’s presentation was that market entry should be grounded in careful assessment.

Businesses need to look at demand, regional differences, buyer structures, competition, regulations, certification, partners, payment considerations, political risk and internal capacity.

A large market can be attractive. A growing market can be exciting. But the right market is the one where a business understands the opportunity, the risks and the work required to compete.

For companies considering Indonesia, the next step is not simply to ask whether the market has potential. It is to ask whether the opportunity is a true fit and whether the organization is ready to pursue it properly.

Learn from more global trade experts

FITTskills Live webinars are free opportunities to explore timely international trade topics with experienced professionals. Browse upcoming FITT events and register for the sessions that can help you keep building your trade knowledge.

The post Is Indonesia the right market for your business? Lessons on smarter market entry from Sean Emmond, CITP appeared first on Trade Ready.

Alejandro’s interest in global trade began very early in life, choosing to study it in school and then channeling that enthusiasm into a successful career.

“I have always found international trade fascinating and that is why I decided to major in international business.”

He showed a strong aptitude for international business while studying, and was given an opportunity to work in the international division of the Mexican Ministry of Agriculture.

I participated in several trade development and international cooperation projects. I also had the opportunity to participate in the negotiations of some of the free trade agreements that Mexico has in place, such as those with the European Union, the European Free Trade Association and Central America.

This was pretty impressive stuff for an undergrad. Alejandro graduated from the Universidad Panamericana in Mexico City in 1999, earning a B.A. in management with a major in international trade.

Making a major impact on Mexican agriculture

After a year in his undergraduate position as Special Services Executive at the Mexican Ministry of Agriculture, Alejandro moved on to a position with the Ministry as Chief of the Agriculture Policy Department. In this role he analyzed the agri-food policies of Mexico’s main trading partners and assessed their impact on international trade.

He was also responsible for coordinating with industry to determine the position of the Mexican agri-food sector for the negotiation of international free trade agreements with the European Union, Israel and Central America.

Alejandro stayed with the Mexican Ministry of Agriculture until 2002, holding the subsequent positions of Subdirector of Economic Studies and Agricultural Specialist. In the latter role, he represented the Mexican agri-food sector in the negotiation of international trade agreements to facilitate the access of Mexican products to target markets overseas.

Excitingly, he also coordinated the participation of Mexico in multilateral forums such as the World Trade Organization (WTO) and the Organization for Economic Co-operation and Development (OECD). He was further charged with promoting business opportunities for Mexican agri-food companies in key foreign markets such as Canada, the U.S., the European Union and Japan.

Advocating for a key industry in his country’s economy

In May 2002, Alejandro had the opportunity to take on a position as Trade Commissioner for Agri-food at the Canadian Embassy in Mexico, where he covers agriculture, food, beverages, fisheries and biotechnology.

“One of my main roles is to act as liaison to advocate with the Mexican authorities for the resolution of market access issues (sanitary, technical, etc), affecting exports of Canadian products to Mexico. In addition, I monitor on a daily basis any changes to the Mexican regulatory framework and provide advice to Canadian exporters about the regulations their products must comply with to be imported into Mexico.”

“I also participate in market development activities for Canadian products in Mexico, and assist Canadian exporters facing problems with the customs clearance of their shipments at the Mexican border.”

While working as a trade commissioner, Alejandro decided to supplement his two existing degrees by taking some targeted training in order to keep his knowledge fresh. He enrolled in both in-class and online FITTskills courses to complete his training in a format that worked best with his learning style and schedule.

My experience taking the FITTskills courses was excellent. The courses allowed me to refresh my knowledge and learn new things about international trade, which are very useful for my work. The training also allowed me to be better prepared for supporting those Canadian exporters wishing to export their products to Mexico, which is one of my roles at my current job.

Representing his industry with pride

Alejandro successfully completed the program in December 2014 and decided to demonstrate his level of expertise and commitment to global trade by applying for his CITP®|FIBP® designation.

“I chose to apply for the CITP®|FIBP® designation because I believe it is important to continue learning every day and keep abreast of the constantly changing trends of international trade. I feel very honoured to have earned such a prestigious designation, which has helped to deepen my specialization in international trade.”

“I foresee this designation playing an important role in my future career, and believe that it could open the door for further growth within my organization or other organizations interested in having the services of a certified international trade practitioner. I also believe that the network of contacts with other CITP®|FIBP®s will be very helpful for my career advancement in the future.”

During his time as a trade commissioner, Alejandro has had a chance to be part of many fascinating projects, but one stands out as a particularly gratifying experience.

“I have worked on many interesting projects throughout my career, but I would say that one of the most relevant was when we were able to re-establish access to Mexico for most Canadian beef products after the market was closed due to the BSE case (mad cow), which occurred in Canada in 2003. This required intensive negotiations, communications and representations with the Mexican authorities. The Mexican market is very important for Canadian beef exports, so this was a significant achievement. The resolution of these types of issues has contributed to a growth of more than 50% of Canadian agri-food exports to Mexico over the last 10 years.”

For his efforts on this key project, Alejandro was recognized with the Head of the Public Service Award from the Government of Canada in the category of Excellence in Service Delivery.

The award was given to me in recognition of my contribution to the Bovine Spongiform Encephalopathy (BSE) and Response Team, which achieved the re-establishment of access to Mexico for Canadian beef from animals under 30 months of age, after the BSE case in Canada in 2003.

And that’s not the only recognition Alejandro has received in light of his achievements as a trade commissioner.

“I have also earned the Award to the Most Prominent Local Employee of the Canadian Embassy in Mexico, for my contribution to the facilitation of Canadian agri-food exports to Mexico.”

“I am very passionate about international trade, which is crucial in the globalized world in which we live. My goal is to keep specializing in this field, and apply my knowledge and experience in the daily work to allow the organization that I work for to reach its objectives, and at the same time achieve my professional growth.”

Alejandro has already made some significant contributions to his field and we have no doubt he will continue to make great strides in his future endeavors. We’re looking forward to seeing what he does next.

The post Alejandro Ruiz, CITP|FIBP – Trade Commissioner for Agri-food appeared first on Trade Ready.

Market research enables for better decision making, the identification of potential issues and threats, and the minimization of risks involved in the internationalization process.

When conducting market research, a technique you can use to identify investment and trade opportunities is to examine pain points in the Asian market. Pain points are problems or unmet needs in the market place that a company (hopefully yours) can solve.

Identify the pain points in your target Asian market

Let’s use the Chinese market as an example and a pain point that I have had the opportunity to work on since 2008. Food safety is a growing concern among Chinese consumers.

A New York Times article in 2012 discussed the problems plaguing the Chinese food sector, including milk products tainted with melamine—an industrial chemical used to make fertilizer and plastic pipes.

The lack of trust among Chinese consumers for locally made food products, coupled with a growing middle class with more disposable income, has resulted in a strong demand for highly priced Western-made foods. In turn, Western food companies are pushing to get their products into the Chinese market, which has 1.3 billion consumers.

Just to put things into context, a 900 gram tin can of foreign-made milk powder that has a retail price of $16 USD to $20 USD in North America would sell for $60 USD in China.

Examine all angles of a pain point to find opportunities for trade and investment

On the other end of the spectrum, Chinese companies are looking for ways to take advantage of Western-made labels, such as “Made in Canada” or “Made in USA”. Chinese companies are investing in overseas markets by setting up or acquiring food processing plants, producing food-products in Western countries which have very stringent food safety standards, and then shipping the finished products back to the Chinese market.

As a major food producer in the world with strict safety standards, Canadian food companies can stand to benefit from the pain points in the Chinese food sector by exporting “Made in Canada” food products and by being a recipient of Chinese investments into the Canadian food sector.

Finally, Canadian food producers should not limit their scope to China. The Food and Agriculture Organization (FAO) for the United Nations warns that some developing countries in Asia and the Pacific will need to increase their food production by up to 77 percent to feed their population by 2050.

With rapid urbanization resulting in the destruction of farmlands, limited investments in agriculture infrastructure and capabilities (which I have seen firsthand), water shortages and climate change, the region will experience food security issues in the near future.

Some governments in the region recognize the issue and are finding ways to tackle the problem. Solutions include urban farming, increasing agriculture yields by introducing efficient processes, and encouraging youths to go into farming.

However, their efforts will not be sufficient. As a net producer, the Canadian agri-food sector is in a strong position to alleviate this regional pain point.

Use your company’s strengths to start fulfilling unmet needs

Tracking market pain points in Asia have allowed me to find trade and investment opportunities on behalf of my clients. I hope this technique will add value to your internationalization process and enable you to find your own opportunities in the Asian region.

I encourage you to examine your organizational capabilities, your products lines and your service offerings.

The results of the exercise and the opportunities you may uncover might surprise you.

Has your business been able to identify such potential opportunities? What pain points have you noticed in the Asian market that could present trade and investment opportunities for companies around the world?

The post Pain points in the Asian market are potential trade opportunities for your business appeared first on Trade Ready.