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Chinese firms lured towards Indonesian SMEs
Aug '10
Following their short trip to China's small and medium-sized enterprises (SMEs), Indonesian businessmen have procured a number of interests from Chinese entrepreneurs.

As per a senior official from the SME's at Indonesian Employers Association (Apindo), Chinese entrepreneurs have apparently agreed upon cooperating with Indonesian SMEs in the fields of apparels, handicrafts, food and beverages and coconut shell charcoal.

This official further continued that, there were certain demands made by the Chinese enterprises, which required follow-ups. But Indonesian SMEs alone were unable to handle the same and therefore they have urged government, banks and other related firms for help.

According to a handicraft entrepreneur, three firms have shown interest in Indonesian handicrafts and wood-based goods.

Ironically the apparel segment, wherein most entrepreneurs are pessimistic as China is Indonesia's key competitor in production of apparels, has also received few positive signs from Chinese firms, as cost of labour is rising in the world's most populated nation.

Earlier, economists had relegated China's economic outlook, owing to rising cost of labour, further mentioning that, the cheap labour era in China was soon to end.

Apindo representative for the apparel segment stated that, Chinese offered Indonesian boutiques a proposal to launch showrooms in China and also work in coordination with their tools and other resources.

Fibre2Fashion News Desk - India

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