Indonesia is set to sign a trade deal worth $3.5 billion with African countries at the ongoing Indonesia-Africa Forum in Bali.
Vice Foreign Affairs Minister Pahala Mansury said in an interview last week that the agreements will be announced at the ongoing Indonesia-Africa Forum, which runs through Tuesday, September 3.
This significant increase from the $600 million in agreements signed in 2018 demonstrates Indonesia’s growing interest in African markets.
Among the key agreements, PT Perusahaan Listrik Negara, the state-owned utility firm of Indonesia, and Tanzania Electric Supply Co. Ltd. will collaborate on geothermal energy projects.
In addition, PT Bio Farma has reached an agreement to transfer health technology to Atlantic Lifesciences Ltd. in Ghana, and negotiations are underway for Congo and Senegal to buy and service aircraft from PT Dirgantara Indonesia.
Furthermore, Indonesia’s state oil and gas company, PT Pertamina, is exploring the possibility of collaborating with Guma Group Ltd. to build a power plant in South Africa using gas imported from Mozambique.
Indonesia’s efforts to diversify its trade relationships beyond traditional partners like China, the US, and Japan are becoming increasingly urgent due to global economic challenges.
According to Mansury, the country may find potential export markets in Kenya, Nigeria, South Africa, and Egypt, in particular, given their rapidly expanding populations. He continues, saying that the Ministry of Foreign Affairs is promoting improved market access for Indonesian goods.
Indonesia, the largest economy in Southeast Asia, plans to manufacture ammonia and fertilizer in Africa through a gas-related project, with agreements in agriculture and health to boost exports of pharmaceuticals, food, and vaccines.
With its abundant nickel reserves, Indonesia is looking to Africa for other essential minerals like cobalt and graphite that are needed in the production of batteries. President Joko Widodo recently said that Indonesia is completing a lithium mining agreement with Zimbabwe.
