Indonesian SME Chili Producer Optimistic about Export Markets amid Lacking Supply Chain
reported by: Liu Setiawan
Banten, February 28, 2024/Indonesia Media – A small medium enterprise (SME), CV Big Boss Food (BBF) in Cilegon, the province of Banten was optimistic with the prospect of export markets especially in those countries which many Indonesian domestic migrant workers can be found such as Saudi Arabia, Hong Kong, Taiwan, Australia, though the supply chain management was still lacking in improvement.
The products of BBF consisted of six variants of chili sauce, go hiong (a composition of various meats and vegetables and other ingredients, such as a sausage-like roll consisting of chicken meat, prawn or fish seasoned with five-spice powder). Three of six variants use ingredients such as kabeljou, cuttlefish, and anchovies. There are two tastes for the variant of cuttlefish; firstly green chili – mixed and plain taste. BBF still needed to improve cost efficiency and risk. “In Saudi Arabia, there are more Indonesian workers consuming our chili. Even in Australia, Taiwan, there are some Indonesian stores which sell Indonesian food including Big Boss chilli. as there are some government regulations on export that we have to comply with, that is still a burden for us. So far, I have yet to decide to export,” said the owner of BBF.
He reiterated that local customers from Papua, Maluku provinces came for the chili. They bought and hand-carried the chili from Jakarta to Papua. If they send the chilly by cargo expedition to Papua, Maluku, North Maluku provinces, it would be costly. When BBF chili is getting more popular in those provinces, buyers, there is an increase of demand. “Around 70 bottles (of chili) for one delivery (to Papua, Maluku). If the demand decreases, (buyers) only order 50 bottles,” he said.
Buyers usually hand-carry the chili to Soekarno Hatta (Soeta) airport, Cengkareng. There is another person, or his/her relative who would help to bring (the chili) directly either to Papua or Maluku. The way of delivering the goods from Jakarta to complete deliveries to a further destination such as Papua, Maluku was helpful to minimize the cost. Both buyer and BBF would not spend so much money for the delivery. “Sometime we carry the goods to the driver or conductor of shuttle bus Damri, covering the route Cilegon – Soeta airport, and they (driver, conductor) convey it to cargo staff. We sell (chilli) and charge customers in Papua, reseller price. But I share commission on what he has done, meddling in the transaction,” he said.
The market of Saudi Arabia has been open for six months. Since the first transaction, meddling and commission-based business can be effective for mutual benefit. The relationship between customers and meddler ran smoothly. If demand increases, meddlers might take the goods every week. But if demand decreases, there are two or two transactions per week. Market demand for Saudi Arabia is not certain. The quantity for the country, (buyer) might order 300 bottles for two variants. “It is available, either the variant of ulek geprek, garlic, kabeljou, cuttlefish, anchovies. Meddler and buyer will come to my place and deal with another order in which they need if market demand increases in Saudi Arabia. I am always storing the goods, and guarantee availability whenever Saudi Arabia buyers need. I also keep records of changes, prospecting the market,” he said.
He reiterated that the business involves storing the raw materials, especially the materials used for ingredients such as anchovies, cuttlefish, kabeljou. So far, he needed five kilograms of cuttlefish for one production per day. Besides, he needs to source the raw materials from some agents. “Once I surveyed the situation of fish traders and the center of salted fish production in Sumur village, Pandeglang regency (Banten province). I try to deal with some traders to guarantee the stock of fish for my production. Not only Sumur village, but there are others places in Serang regency (Banten province) where we can meet some traders for cuttlefish, kabeljou, anchovies, etc. but the traders in Sumur, Serang have dealt with other businessmen for agreement on the purchase of fish. They (other businessmen) sign contracts for the next purchase. They can spend more money than me for traders, to guarantee and predict their next purchase on fish. So traders have no choices, except just sell out the fish to those businessmen,” he said. (LS/IM)
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