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Jakarta Post

RI enjoys $1b trade surplus with S. Africa

The relations between Indonesia and South Africa have grown significantly during the last four years

Veeramalla Anjaiah (The Jakarta Post)
Jakarta
Mon, May 6, 2013 Published on May. 6, 2013 Published on 2013-05-06T09:38:08+07:00

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T

he relations between Indonesia and South Africa have grown significantly during the last four years. Breaking the geographical barrier and putting aside the impact of the global financial crisis, the bilateral trade volume between the two regional powers has more than doubled between 2009 to 2012, increasing from US$834.80 million to $2.35 billion.

Indonesia has Southeast Asia'€™s largest economy while South Africa is Africa'€™s biggest economy. Both countries are regional powers in their respective regions and members of the G-20. Both countries closely cooperate in various sectors and on international forums under the South-South cooperation. The economic interaction, especially trade, between the two countries has been growing significantly in recent years.

The balance of bilateral trade was heavily in favor of Indonesia, which enjoyed more than a billion dollar trade surplus in 2012 alone. Based on data from the Central Statistics Agency, Indonesia exported $1.69 billion worth of goods to Africa'€™s rainbow nation in 2012 and imported $661.98 million of goods from South Africa. Indonesia mainly exports automobiles, palm oil, chemicals, shoes, garments, batik shirts, tires and electronic goods to South Africa and mainly imports chemicals, food, wine, mining equipment and minerals from Pretoria.

The South African Ambassador to Indonesia Noel Noa Lehoko has convinced Indonesian businesspeople to look at the potential of South Africa.

'€œOur relations have been developing very fast. Before my arrival in Jakarta in 2009, both countries'€™ relations were cordial. In 2005, then South African president Thabo Mbeki visited Indonesia and President Susilo Bambang Yudhoyono visited South Africa in 2008. We established a Joint Commission [2004] and Joint Trade Committee [2005],'€ Ambassador Lehoko told The Jakarta Post in an interview in connection with South Africa'€™s Freedom Day, which fell on April 27.

Lehoko will be leaving Indonesia soon after completion of his term.

During Yudhoyono'€™s visit in 2008, both countries also announced the building of a new strategic partnership to take the ties to new heights.

'€œI am very glad that last year more than 1,000 Indonesian businesspeople visited South Africa and numerous South African business delegations visited Jakarta to explore new opportunities. We facilitated their meetings,'€ medical doctor turned diplomat Lehoko said.

'€œThis interaction and people-to-people contact will have a big impact on our future relations.'€

As an upper-middle income country as well as a newly industrialized nation, South Africa is an attractive market for Indonesia.

'€œAs far as business opportunities are concerned, the sky is the limit. We welcome Indonesian investment. Indofood is already present in South Africa. Hopefully others will follow suit. At the same time, several South African companies are showing interest in Indonesia,'€ Lehoko said.

South African airlines, he added, is currently planning to have a stopover in Jakarta while flying from South Africa to Australia.

'€œWe have enormous potential in both countries. Both share the same vision and values and are strongly committed to the South-South cooperation. In the past, both countries initiated the NAASP [New Asia Africa Strategic Partnership]. I am confident that the relations will be very strong in the future,'€ Lehoko said.

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