Indonesia is set to finalize business agreements worth $3.5 billion with several African countries during the second Indonesia-Africa Forum, currently being held on the resort island of Bali.
The forum, running until September 3, is focused on strengthening economic ties as Indonesia looks to broaden its export markets, according to the country’s president on Monday.
“The partnership between Indonesia and Africa so far has significantly increased trade volumes and trade agreements,” President Joko Widodo said.
Vice Foreign Affairs Minister Pahala Mansury said in an interview last week that the targeted haul is much bigger than the roughly $600 million in deals signed in 2018 when the inaugural meeting was held
At the event, several memorandums of understanding are expected to be signed, including a geothermal project between Indonesia’s state power utility, Perusahaan Listrik Negara, and Tanzania Electric Supply Company (TANESCO), as well as a partnership between Indonesian pharmaceutical firm Bio Farma and Ghana’s Atlantic Lifesciences Ltd, Reuters reported.
According to Bloomberg, Indonesia has been actively seeking to diversify its trade beyond traditional partners like China, the US, and Japan. This effort has become increasingly urgent due to China’s slowing economy, weak commodity prices, and rising protectionism, all of which are challenging Indonesia’s export sector.
Kenya, Nigeria, South Africa, and Egypt, with their rapidly growing populations, present promising new markets for Indonesia’s exports, according to Vice Foreign Affairs Minister Pahala Mansury. He added that the foreign ministry is working to secure better market access for Indonesian commodities in these regions.
