Indonesia will further expand trade and investment with African countries that are believed to offer enormous economic potential. Until now, Indonesia has not been able to fully tap into business opportunities in the continent.
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AFP PHOTO/SONNY TUMBELAKA
Indonesia Vice President Jusuf Kalla (front centre in silk shirt) poses with delegates for a group photo during the Indonesia Africa Forum (IAF) 2018 in Nusa Dua on Indonesia\'s resort island of Bali on April 10, 2018.
NUSA DUA, KOMPAS – Indonesia will further expand trade and investment with African countries that are believed to offer enormous economic potential. Until now, Indonesia has not been able to fully tap into business opportunities in the continent.
At the opening of the Indonesia-Africa Forum (IAF) 2018 in Nusa Dua, Bali on Tuesday, Vice President Jusuf Kalla expressed his optimism that economic cooperation with African countries could increase by more than 100 percent. Better cooperation is believed to have numerous benefits for Indonesia and African countries.
Economic cooperation between Indonesia and African countries has been in an upward trend in recent years. The trade value between Indonesia and African counties reached a total of US$8.84 billion in 2017, a 15.25 percent increase from the figures in 2016. According to the Vice President, the value of Indonesia-Africa trade is relatively small compared to its full potential.
With a the demographically productive population in Indonesia and Africa reaching 400 million people, the prospect for future economic cooperation is quite bright. Trade between Indonesia and African countries has shown a rapid increase. Trade with Liberia, for example, increased by 284 percent, as well as with Comoros by 268 percent, Gabon by 215 percent and Togo by 105 percent.
Vice President Jusuf Kalla opens the Indonesia-Africa Business Forum 2018 on Tuesday (10/4) in Nusa Dua, Bali. Indonesia invited representatives from 46 African countries to the Indonesia-Africa forum. At the two-day event, Indonesia targeted economic opportunities worth at least US$1.9 billion.Cooperation agreement
Foreign Minister Retno Marsudi said there were a number of bilateral meetings held on the sidelines of the IAF, which lasted for two days. There was also a business forum between the government and businesspeople from the 47 participating countries.
A number of state-owned companies and private Indonesian companies signed business agreements worth $586.5 million. The business deals currently underway or undergoing feasibility studies are worth $1.32 billion.
"We are trying to expand to non-traditional markets. The first deal is worth nearly $600 million," said Coordinating Maritime Affairs Minister Luhut Pandjaitan.
He said African countries were interested in a number of Indonesian products. Madagascar is interested in trains made by state owned train manufacturer PT INKA while Senegal is interested in ships, cars and home appliances.
AFP PHOTO/SONNY TUMBELAKA
Indonesia Vice President Jusuf Kalla (right) speaks to journalist during the Indonesia Africa Forum (IAF) 2018 in Nusa Dua on Indonesia\'s resort island of Bali on April 10, 2018.
The Indonesian ambassador to Ethiopia in Addis Ababa, Imam Santoso, said Indonesia needed to further promote cooperation with Eastern African countries, which offered huge opportunities for Indonesia.
At present, state owned port operator Pelindo II has cooperated with the Authority of the Port and Free Trade Zone of Djibouti. As for Ethiopia, Indonesia has agreed to allow an Ethiopian airline to open the Addis Ababa-Jakarta route.
According to McKinsey research institute, Africa\'s biggest partner is China. There are more than 10,000 Chinese companies operating in Africa. Almost 90 percent of them are private companies.
The Chinese companies operate in many sectors. In manufacturing, 12 percent of African industrial goods worth $500 billion per year are produced by Chinese companies. In infrastructure, Chinese companies control nearly 50 percent of construction contracts.
