Photo Illustration: Workers in the Micro, Small and Medium Enterprises (MSME) sector. Ministry of Foreign Affairs Doc.
Jakarta, InfoPublik – The 2nd Indonesia Africa Forum (IAF), which will take place on 1-3 September 2024 in Bali, is a golden opportunity for Indonesian business players to establish strategic cooperation with African countries.
As reported on the website of the Indonesian Ministry of Foreign Affairs, Friday (30/8/2024), the forum entitled "Bandung Spirit for Africa's Agenda 2063" will invite representatives from 54 African countries, with the aim of optimizing the potential for business transactions between the two regions.
To achieve the goal mentioned, the forum will host a business exhibition on 2-3 September 2024, which will showcase four leading sectors: energy, food and consumer goods, strategic and defense industry, and health.
As of today, 103 companies and 139 entrepreneurs from Africa, as well as around 350 Indonesian entrepreneurs, have registered to participate. Several Indonesian State-Owned Enterprises (BUMN) and private companies that will be involved include PT Pertamina, Biofarma, DEFEND ID, and PT Perkebunan Nusantara (PTPN III).
For example, PT Pertamina has exported its products and services to a number of African countries such as Algeria, Namibia, Tanzania, Gabon, Nigeria and Angola. In addition, PT Solusi Tani Makmur has also exported its organic fertilizer products to Mozambique.
Director of Marketing & Operations of PT Patra Jasa who is also Vice President of Business Development International Market of PT Pertamina (Persero), Litta Ariesca, stated that the energy sector in Africa has significant potential, in which Kenya being one of the countries with the eighth largest geothermal energy potential in the world.
Indonesian private companies such as PT Solusi Tani Makmur, Indesso Aroma, Tirta Ayu Spa, and PT Dami Sariwana also have business track records in Africa, exporting products such as organic fertilizer, skincare, hijab, and processed food products as well.
Ahead of the business exhibition implementation, the Indonesian Ministry of Foreign Affairs in collaboration with Indonesian Representative abroad, Trade Attache, and Indonesia Trade Promotion Center (ITPC) in Africa has facilitated a series of business cooperation explorations between Indonesian and African businesspeople from July to early August 2024 through virtual business matching involving 14 companies and 50 Indonesian MSME's along with 15 potential buyers from Africa.
The enthusiasm of African businesspeople to collaborate with Indonesian businesses can be seen from their interest as exporters/aggregators, technology project collaborators, or in human resource training partnerships. Additionally, African businesspeople have expressed interest in exploring potential investments of Indonesian companies to establish factories in Africa.
Products that are in high demand by African businesses include skincare, hijab, coffee, processed food and custom furniture.
The Indonesian Ministry of Foreign Affairs has invited representatives from Zimbabwe and Tanzania to open booths at the business exhibition, as a part of efforts to enhance two-way trade between Indonesia and Africa.
In 2023, bilateral trade between Indonesia and Zimbabwe was valued at US$85.1 million, showing a 5.32% increase over the past five years. Meanwhile, trade with Tanzania reached US$317.8 million with an increasing trend of 5.21 percent in the same period.
Indonesia's top commodities exported to Zimbabwe include textiles, household appliances, and food products. In contrast, the main exports to Tanzania are palm oil, paper, textiles, and chemical products.
The exhibition is expected to open up further opportunities for cooperation and collaboration to improve trade between the two regions.
PT Pertamina (Persero) has stated its support for the 2nd Indonesia Africa Forum (IAF) in Bali, as an effort to realize the 2063 African Development Agenda and strengthen South-South Cooperation.
As it was highlighted by PT Pertamina (Persero) Vice President Business Development International Market, Litta Ariesca, in the Online Press Briefing - Update on Preparations for the 2nd Indonesia-Africa Forum (IAF), Thursday (29/8/2024).
Since 2013, Pertamina has carried out oil and gas exploration in African regions such as Algeria, Gabon and Tanzania. At IAF 2024 in Bali, Pertamina will also showcase its products and services that can be potential business collaboration with African countries.