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LISTED COMPANY - JAKARTA. Japan is reportedly entering a recession. This situation seems to impact Indonesia's trade performance, one of which is on export activities in several domestic industries.
The issuer of cosmetics and body care products, PT Mandom Indonesia Tbk (TCID) ensures that the export performance of products to Japan is still safe. Management stated that the impact of the recession in the Land of the Rising Sun has not yet reduced the company's export volume.
"So far, the products we export to Japan are still safe, both in terms of market and demand," said Mandom Indonesia Corporate Secretary Alia Risyamaya Dewi, to Kontan, on Wednesday (22/2).
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Alia stated that the company's export sales ratio currently averages 25%-30% of total sales. Meanwhile, sales of export products to Japan alone contribute 20% of sales. The exported goods are facial and hair care products.
In addition to Japan, the company is strengthening its export market to Hong Kong, South Korea, the United Arab Emirates (UAE), India, and all ASEAN countries.
For information, Mandom Indonesia produces and trades skin care, hair care, cosmetics, and perfume products. Its famous products include; Lucido~L, Pixy, Pucelle, Gatsby, Fresh n Fresh, and Johnny Andrean.
Read Also: Japan and the UK in Recession, Sri Mulyani Reveals Its Impact on the Global Economy
As reported earlier, the Indonesian Export Entrepreneurs Association (GPEI) stated that the recession in Japan and the UK has not yet affected Indonesia's export performance. This is because several trade contracts that occurred in the first quarter of 2024 have been agreed since the fourth quarter of 2023.
"There is no trend of decreasing demand," said GPEI Chairman Benny Soetrisno to Kontan, on Wednesday (21/2).
Benny predicts that the impact of the recession experienced by the two countries will only be seen in the second quarter of 2024, such as a decrease in demand volume and price adjustments for products.
"Possibly for shipments in the second half of 2024, there will be a decrease in volume or demand for cheaper prices. It still can't be calculated, but (demand volume) will decrease," he said.
To anticipate this global condition, entrepreneurs are preparing to shift their market to target export countries whose economies are still growing.
