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Indonesia-Africa investment ties continue to strengthen, BKPM chairman says
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(Courtesy of Ministry of Investment/BKPM)
I
nvestment Minister and Investment Coordinating Board (BKPM) Chairman Rosan Roeslani has asserted that investments between Indonesia and Africa are increasingly robust, demonstrating the strong economic relationship between the two.
“Indonesia has invested in key African countries, reflecting our commitment to mutual prosperity, with Indonesian companies operating in eight countries across Africa,” Rosan said in his keynote speech for the third session of the Indonesia-Africa Parliamentary Forum (IAPF) on Sept. 1, 2024 in Nusa Dua, Bali.
The minister also highlighted several Indonesian investments in Africa, including that of state-owned oil and gas giant Pertamina in Kenya and Tanzania as well as MedcoEnergi in Mozambique’s oil and gas industry, and the investments of Bio Farma and Wings Group, respectively in the pharmaceutical and consumer goods sectors in Kenya.
Multibillion-dollar value
Rosan revealed that the combined value of Indonesian investments in Africa from 2019 through the second quarter of 2024 totaled US$2.09 billion. Conversely, African countries had invested a total of $1.73 billion in Indonesia.
At the IAPF session themed “Harnessing Trade and Investment Potentials for Inclusive Economic Growth”, Rosan noted that bilateral trade between Indonesia and Africa saw a significant surge in 2023.
Indonesia exports finished goods to destination countries in Africa and imports raw materials from suppliers across the continent. It is also enhancing investment agreements through bilateral investment treaties (BITs) with African nations to ensure a stable investment climate.
More Inclusive Trade and Investment
Rebeca Grynspan, the secretary-general of the United Nations Conference on Trade and Development (UNCTAD) who appeared as a panelist, explained that the situation had improved in the current era of poly-globalization as investments and trade became increasingly inclusive and decentralized, rather than concentrated in a particular region.
“In the next five years, global gross domestic product is projected to reach $30 trillion, with one-third of that coming from Global South countries,” Grynspan said.
The IAPF is part of the Indonesia-Africa Forum (IAF) 2024, which runs from Sept. 1 to 3 in Nusa Dua, Bali. The Investment Minister also attended the High-Level Forum Multi-Stakeholder Partnerships (HLF MSP) forum, which is being held concurrently with the IAF 2024 and involves 1,275 participants from 26 countries.
