| Scope and method of study. The objectives of the study are: (1) to present a comprehensive analysis of the key factors influencing the marketing environment for high-value food products in Indonesia; (2) to determine Indonesia's import demand responsiveness to price, competitors prices and expenditure for oranges, apples, and grapes imported from the U.S. and its competitors; and (3) to provide information about the Indonesian beef import trade, prospects and the responsiveness of beef import demand to prices and expenditures. To accomplish the first objective, market surveys using questionnaire were conducted in 1993 and 1994 in Indonesia with traders, importers, hotel buyers, and restaurant buyers as respondents. A restricted source differentiated AIDS import demand model was used to accomplish the second and the third objectives.; Findings and conclusions. The analysis of the marketing environment for high-value food products in Indonesia concludes that exporters should be aware of the diversity of Indonesian culture, social and ethnic division, the Javanese predominance in the government, the importance of political connections in business in Indonesia, the four major religions, principles of "Pancasila" and the form of the government. Physical distribution systems are important factors limiting successful marketing in Indonesia. The ability to have direct control distribution or a local distributor firm with a bigger market reach is a key to increasing sales in Indonesia. The results of the market surveys and import demand analysis of the fruit market in Indonesia suggest that the U.S. fruit will experience continuing market growth as income in Indonesia increases. Trade servicing, technical assistance, public relations, and consumer promotions are still needed in the Indonesian market. In the fruit market, the U.S. fruits (oranges, apples, and grapes) have strong positions. Income elasticity for apples from U.S. was found to be elastic and price elasticities for oranges, grapes, and apples from U.S. were all price elastic. In the beef market, beef from Australia is very competitive with the U.S. beef. U.S. beef demand was found to be price and expenditure inelastic. Important factors to development of high-value food products in Indonesia are the high income segment of the market, the tourism industry growth and development, the fast-food industry expansion, and the growing supermarket and mega-market industries. |
