Quarterly Report - Kadin Indonesia

1) Stars (upper right quadrant): specialization in high growth sectors: Products located inthis quadrant are those that are growing faster than world trade in real terms. They arealso products in which Indonesia is specialized and have captured relatively highworld market shares, such as such as palm oil and its fractions, footwear, women’ssuits and many others. Indonesia as an exporter of these products has proven theirinternational competitiveness over recent years.2) Emerging products (upper left quadrant): low market share in high growth sectors.These products, such television camera, as present particular challenges forIndonesia’s trade promotion efforts. While international demand has been growing atabove average rates, Indonesia is a relatively minor player with a relatively lowmarket share. This may be because Indonesia has only recently started developingexports in these products or it may be because Indonesia is specialized in nicheswithin the product group in question. For these products, Indonesia needs to identifystrategies to increase its market share in these high growth sectors, by analyzing firstsupply-side bottlenecks faced by the country and its opportunities for horizontaldiversification.3) Snails (lower left quadrant): low market share in low growth sectors. Export prospectsfor these products, in which no products are included from Indonesia, tend to be bleakas world imports have been stagnating or declining and the country has a low marketshare in these products. Trade promotion efforts for these products face an up-hillbattle. Trade strategies for these products need to take into consideration bottleneckson both the supply (production) and demand side.39 Kadin Indonesia – www.kadin-Quarterly Report - January 2006indonesia.or.id