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Indonesia-Africa Infrastructure Dialogue: Indonesia’s increasing presence in Africa

Brand new: State-owned construction company PT Wijaya Karya (WIKA) has built 1,000 apartments with all amenities in Ain Defla, Algeria

Veeramalla Anjaiah (The Jakarta Post)
Tue, August 20, 2019

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Indonesia-Africa Infrastructure Dialogue: Indonesia’s increasing presence in Africa

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span class="inline inline-center">Brand new: State-owned construction company PT Wijaya Karya (WIKA) has built 1,000 apartments with all amenities in Ain Defla, Algeria.(Courtetsy of PT Wijaya Karya (WIKA))

Indonesia is ubiquitous in Africa. Many Africans love Indonesian batik shirts, instant noodles and quality paper. Hundreds of African students study in Indonesia with scholarships from the Indonesian government.

Indonesia has had close relations with almost all African countries for several decades. Politically, both Indonesia and Africa are very close, and there are no major differences between them on many international issues.

Indonesia is well-known all over Africa because of strong support and solidarity with African people during the struggle for freedom from colonial rule in the 1950s. Indonesia and its beautiful city Bandung became very popular because of the historic Bandung Conference popularly known as the Asia-Africa Conference in 1955. This conference gave birth to the Non-Aligned Movement.

With its 265 million population and enormous natural resources, Indonesia — a member of the Group of 20 — offers huge potential for African countries. Likewise with its 1.32 billion population of mostly young people, Africa also provides many opportunities for Indonesia.

Economic relations have been growing at a faster pace in recent years, especially under President Joko “Jokowi” Widodo, who wants to engage Africa economically and enhance cooperation in all sectors.

For example, bilateral trade between Indonesia and African countries reached US$11.25 billion in 2018, a 236 percent increase from $4.77 billion in 2009. Now Indonesia is planning to enhance its investments and cooperation in the development of infrastructure in Africa through the first-ever Indonesia-Africa Infrastructure Dialogue (IAID) in Bali, to be held from Aug. 20 to 21.

During the two-day dialogue, to be attended by 700 delegates from Indonesia and Africa, Indonesia will launch new initiatives for Preferential Trade Agreements (PTAs) with key African countries. These will certainly boost trade in the coming years.

Indonesia mainly exports palm oil, rubber, paper, garments and food and beverages to Africa, while African countries export mainly crude oil, cocoa beans, cotton, tobacco, chemicals and fertilizer.

Several Indonesian companies are already present in Africa, and many more are expected to follow after the IAID meeting.

For example, state-owned construction company PT Wijaya Karya, which has projects in Algeria and Niger, is planning to sign Rp 2 trillion worth of infrastructure and construction projects soon in Zanzibar, Senegal and Ivory Coast.

Privately owned Indofood, Indorama, Wings Group and Sinar Antjol have plants in African countries. There is a huge potential out there.

State-owned companies like Dirgantara Indonesia regularly sell top products to African countries, backed by Indonesia Eximbank financing scheme.

Indonesia is dependent on Africa for its energy needs. It regularly imports oil from countries like Nigeria, Angola, Algeria and Equatorial Guinea.

These collaborations reflect an equal and mutually beneficial relationship between Indonesia and Africa. They are also a token of Indonesia’s commitment to move together with Africa toward a prosperous future.

In an effort to focus more on Africa, Indonesia has 16 embassies, a consulate general in Cape Town in South Africa and a number of honorary consuls. With the increasing interaction and more economic engagement, Indonesia may open more diplomatic missions in the future.

Africa is indeed an important continent politically as it has 54 countries. That means 54 votes at the United Nations. It is also a major destination for Indonesia’s trade and investment. Africa is proven to be a vital hub for geostrategic interests of Indonesia. 

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