Foreign Minister Retno LP Marsudi was in Cape Town on Monday for bilateral talks with her South African counterpart. She encouraged state-owned firms in her entourage to seize the available trade and investment opportunities in South Africa.

“Indonesia’s historical affinity with South Africa can be a strong foundation for developing mutually beneficial economic cooperation,” Retno said.

She said an agreement was struck with South Africa’s International Relations and Cooperation Minister Maite Nkoana-Mashabane to finalize a plan of action for both countries’ 2017–2021 Strategic Partnership, which would act as the basis of future economic cooperation.

Afterwards, Retno spoke to a South African-Indonesian business forum, inviting local businesses from the energy, shipping, and strategic industry sectors, as well as travel agents and importers of furniture and foodstuffs, to “trade, invest in and tour” Indonesia.

“Indonesian and South African businesses must take advantage of [our] very good political relations to realize mutually beneficial trade and investment opportunities,” she told participants.

The forum was also attended by representatives of state-owned strategic industry firms including aerospace firm PT Dirgantara Indonesia, weapons maker PT Pindad and shipbuilder PT PAL.

Daniel Tumpal Simandjuntak, the Foreign Ministry’s director for African affairs, revealed that PT Pindad had offered to South African businessmen its signature Anoa 6x6 armored personnel vehicle, while PT PAL advertised its KCR-60 fast missile ships.

Members of the Indonesian Chamber of Commerce and Industry (Kadin) and state export financier Indonesia Eximbank were also present, completing the promotion-heavy entourage.

One of the results of the forum includes a plan to import 18 containers worth of consumer goods from Indonesia, as well as an assessment of plans to build an instant noodle production facility in South Africa.

Between January and October last year, two-way trade reached US$860 million in favor of Indonesia, a far cry from the 2012 figure of $2.35 billion.

Indonesia mostly exports motorized vehicles, rubber, footwear, tires and paper, while South Africa’s major exports include chemical wood pulp, ferrous waste, iron ore, aluminum, fruit and mechanical appliances.

The meeting with Nkoana-Mashabane also produced a number of new initiatives, including a free-visa agreement for service and diplomatic passport holders, an agreement on diplomat training and other engagements in the marine and fisheries sector.

A state visit by South African President Jacob Zuma to Indonesia and a reciprocal visit by President Joko “Jokowi” Widodo was also proposed for 2017, Foreign Ministry spokesperson Arrmanatha Nasir confirmed.

Whilst in Cape Town, Retno also paid a courtesy call to President Zuma to personally convey an invitation to participate in the upcoming Indian Ocean Rim Association (IORA) Leaders’ Summit in Jakarta next month.

South Africa and Indonesia are both founding members of IORA, which comprises 21 coastal states that border the Indian Ocean. Indonesia served as vice chair of IORA from 2013 to 2015 and is now the current chair.

The chairmanship will be handed over to South Africa this year, after it served as vice chair from 2015 to early 2017. In this regard, Nkoana-Mashabane also indicated that South Africa would host the next IORA Council of Ministers Meeting in Durban later this year.(jun)

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