T

rade Minister Mari Elka Pangestu will lead a trade delegation to explore business opportunities in southern Africa from Dec. 6 to 14.

Deputy Trade Minister Mahendra Siregar said on Tuesday that the visit to Angola, Mozambique and South Africa would be part of the government’s efforts to diversify its export destinations and to anticipate the impact of the global economic slowdown — especially in Indonesia’s two largest export markets, the United States and European Union.

“In the middle of the financial crisis in the US and Europe, diversification of export markets, including the African countries, is a way to boost our exports. Indonesia’s exports to these countries are still very low and have many opportunities to grow,” he told reporters in a press briefing at his office.

According to ministry data, exports to African countries surged by 53 percent to US$2.58 billion during the first half of this year, up from $1.68 billion over the same period last year.

Exports to a number of African countries also showed an upward trend in the period ending on June 30.

Exports to Tanzania, Mozambique and South Africa, for example, rose by 435.21 percent, 332.14 percent and 110.12 percent, respectively to $177.6 million, $44.6 million and $658.4 million in the first semester of this year, up from the corresponding period last year.

Indonesia exports a wide range of industrial products including food and beverages, garments, footwear, electronics, medical tools, rubbers ,tires, cars and automotive components.

Mintardjo Halim, the executive for the Africa region at the Indonesia Chamber of Commerce and Industry (Kadin), said that Indonesian products were well-suited to African market demands, and therefore, the country could potentially supply a bulk of products to the region in the future.

However, he says Indonesia still faced obstacles to further penetrate the African market.

“Almost all of our goods go to Africa through third parties, which also applies to products imported from the region,” he said, citing Singapore and the United Arab Emirates as hubs for exports, and European countries for imports.

Mintardjo added that limited financial services linking Indonesia to the African countries also hindered the countries’ trade activities from their potential growth.

“We’ll need to discuss and seek solutions after the visit,” he said.

Mintardjo said that among the business delegation were representatives of Indonesian companies and business associations whose products had a presence in the region.

The delegation is scheduled to visit West African and East African countries next year.

Mozambique Ambassador to Indonesia Carlos Agostinho Do Rosario said that his country expected to attract investment from Indonesian companies, which were considered necessary to spur growth and create jobs in his country, besides enhancing bilateral trade.

“For instance, we export cotton to Indonesian production, but we slowly need to gain experience and technology transfer from [Indonesia] to develop industry in our country instead of selling it,” he said.

Do Rosario added that Mozambique, with its potential in the mining sector, might also attract Indonesian firms to invest.

Separately, Coordinating Economic Minister Hatta Rajasa will lead a trade delegation to West African countries such as Ghana and Nigeria later this month.

— JP/ Linda Yulisman