Business-to-Business or B2B is a business that is more concerned with long-term business relationships. Because if B2B makes profits from each item or item, profits will be small, so to generate a large profit value, – continuous cooperation between the parties involved must be carried out. With the B2B cooperation between companies in Indonesia and Mexico, there is a possibility that this collaboration could contribute positively to the improvement of the quality of products and services offered by both parties.
Indonesia and Mexico have done business-to-business (B2B) trade balance cooperation through signing a memorandum of understanding (MoU). In this regard, Indonesia and Mexico have a common role in opening up opportunities for export and import activities for national interests such as helping the national economy, improving bilateral trade relations and cooperation between the two countries. The agreement can also promote trade in the global value chain (global value chain) and help the world economy recover from the Covid-19 pandemic. The Indonesian-Mexico Cooperation Exploration in order to explore potential cooperation between Indonesia and Mexico, the Indonesian-Mexico trade cooperation can also encourage increased cooperation between Indonesia and Mexico. The Indonesian-Mexico-Mexico trade cooperation is having talks with Mexican companies in the maritime service field. The meeting was to explore information on the services and availability and types of ships operating in Mexico, especially in ports in the West Coast of the Pacific and Gulf of Mexico, and to explore the portability of the United States. In addition to doing export and import activities to help each other's economies by cooperating with Mexico, Indonesia will export urea fertilizer, coal fertilizer, coconut charcoal, and spices, namely cinnamon, nutmeg, and pepper. Meanwhile, Mexico offers sesame seeds and vegetable oils in the form of canola and sunflower seeds.
The cooperation agreement carried out by the two countries marked the first time that a Business-to-Business (B2B) trade balance was established between Indonesia and Mexico and succeeded in increasing Indonesia's export value rapidly compared to before doing B2B. Business-to-Business (B2B) that is intertwined between Indonesia and Mexico also has another positive impact on development in technology and knowledge with such things as technology transfer. As for several other forms of challenges that require special attention, namely customs and connectivity, the development of Indonesian outbound investment in Mexico can open up greater market access for Indonesian products.
Indonesia's advantage in Indonesia-Mexico B2B cooperation
In reciprocal cooperation Business to Business or B2B, which is the first time that trade cooperation is carried out between Indonesia and Mexico. This is Indonesia's attempt to open up export opportunities so that it can help the national economy. This cooperation is set aside by the interests and goals of each country involved. This B2B shows an interdependence between the two countries and this B2B cooperation can show that there is an ability from the two countries to complement each other. Â With this B2B cooperation, it can generate profits for Indonesia, namely:
1. Â Â Indonesia and Mexico have a cooperation through the signing of the MoU which can make Indonesia have an increasing export opportunity in trade that is much larger than before in the future. In B2B cooperation companies can reach a wider market, namely through exports with potentially more customers than before.
2. With greater trade between Indonesia and Mexico, there can be increased growth in the field of business expansion. Â This has an effect on the increase in income in Indonesia and the recovery of the Indonesian national economy.
3. Â Â The Business to Business cooperation conducted between Indonesia and Mexico made the expansion of the Indonesian export market so that it could provide marketing for new Indonesian products.
4. Â Â The existence of B2B cooperation provides a marketing strategy for Indonesia to have a better competitive advantage.
5. Â Â This also has an effect on Indonesia in maintaining a better export value for Indonesia to competitors.
6. Â Â The B2B provides an expansion of Indonesia's export market so that this can provide Indonesia in saving the country's foreign exchange.
7. Â Â The cooperation also contains the use of technology transfer and knowledge, so that it can help Indonesia improve its understanding of technology, which then makes Indonesia understand business development and exports.
8. Â Â It can help Indonesia in optimal production, better product development, which is through interaction with business customers and also has an impact on better corporate management.
Success of B2B Indonesia and Mexico cooperation
The signing of a memorandum of understanding/MOU carried out between Indonesia and Mexico is one of the B2B successes achieved. This can open up opportunities for export and recovery of the national economy, encourage trade in the global value chain, improve relations and cooperation between Indonesia and Mexico. From the presence of B2B, there are several benefits, namely accelerating technology and knowledge transfer, the creation of balance of trade balance and payment, the expansion of employment opportunities. The implementation of trade balance is regulated in Law No. 7 of 2014 on Trade; Law No. 16 of 2012 on the Defense Industry; PP No. 76 of 2014 on the Mechanism of Trade Imbal in the Procurement of Alpalhankam from Foreign Countries; PP No. 29 of 2017 on the Method of Payment and Payment thereof Permenhan Number 30 of 2015 on Trade, Local Bodies, and Offset in the Procurement of Equipment and Security from Foreign Countries; and Permendag Number 01 of 2021 on Buying Imbal for the Procurement of Government Goods from Import. The presence of B2B, Indonesia and Mexico can establish import exports or cooperation:
1. Â Â In 2020, Indonesia exported USD 154.9M of non-oil and non-oil imports of USD 127.3M. So Indonesia got a surplus of USD 27.6M
2. Â Â Indonesia exports the most to machinery and electrical equipment products with an export value from Mexico in 2020 of USD 94M
3. Â Â Indonesia exports many mineral fuel, mineral oil and products from distillation with an export value of USD 74.9M. This is up compared to the previous USD 19.3M
4. Â Â Indonesia exported its rubber and articles to Mexico in 2020 amounting to USD 68.7M
A pilot project in which Indonesia offers urea fertilizer, coal fertilizer, spices such as cinnamon, nutmeg, pepper and coconut batok. Meanwhile, Mexico offers sesame seeds, vegetable oil, and other essential oils.
B2B Indonesia and Mexico's cooperation with international relations
In the B2B cooperation carried out by Indonesia and Mexico it has a connection with international relations. International relations is the relationship between countries, in which the B2B cooperation can be seen that there are bilateral relations and ties between Indonesia and Mexico, in addition to cooperation between the countries of Indonesia and Mexico, it is done to achieve good interests in the economic aspect. There is cooperation, can improve the welfare of the people, and increase the economic growth of the country
