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mid its push to diversify exports, Indonesia expects to seal a preferential trade agreement (PTA) with South Africa, one of the fastest-growing markets on the African continent.

Indonesia planned to conduct a preliminary study to assess complementarity between both countries, with the aim of determining the areas that would gain significant benefit from the arrangement, Trade Minister Gita Wirjawan said in Jakarta on Tuesday.

“We have to clearly identify what we can offer each other and find out what is hampering trade on these products, then determine our moves. This is the necessary process to prepare for a PTA,” he said following a second joint trade committee meeting, which discussed, among other things, market access and sectoral cooperation.

The study was due to begin next year with completion set for six months to a year thereafter, Gita added.

In its pursuit of trade growth amid a faltering global economy, Indonesia, Southeast Asia’s largest economy, has begun in recent years to diversify its exports to non-traditional markets, including South Africa, which is a member of the fast-track group of countries, BRICS — Brazil, Russia, India and China being the other members.

Bilateral trade between Indonesia and South Africa expanded by 78.93 percent in 2011 to US$2.14 billion from a year earlier. Indonesia’s exports rose by 111 percent last year to $1.43 billion during the designated period, while imports surged by 36.62 percent to $705 million.

South Africa ranks 23rd as an export destination for Indonesian firms. Indonesia’s exports mainly comprise palm oil and its derivatives, rubber, cars, and paper, while importing chemical wood pulp, ferrous waste and scrap, sugar cane, sweeteners and cotton.

The Trade Ministry’s international trade cooperation director general, Iman Pambagyo, said the PTA was needed to gain wider market access for local goods as, at present, local manufacturers were struggling with South Africa’s high import tariffs of more than 10 percent.

Local manufacturers, such as food and beverage producers, said that sometimes the import tariff stood at 35 percent, making their products far less competitive in the South African market.

“South Africa also serves as an entry gate to other parts of the continent. It is strategic in terms of its location, while in terms of economy, it is also expanding,” Iman said.

South Africa’s Trade and Industry Minister Rob Davies said that before accepting Indonesia’s invitation to sign a PTA, his country would need to consult with other members of the South African Customs Union (SACU), such as Bostwana and Swaziland. Under union regulations, South Africa applies the same import tariffs as other SACU members.

“Any decision about a PTA is something we must reach through joint cooperation. So, we cannot commit to such an agreement already,” he said, but he added that South Africa was also planning to assess complementarity between the two countries next year.

Davies acknowledged that Indonesia was one of the world’s most dynamic markets with huge potential, which South Africa identified as a key destination for export diversification and investment.