South Africa and Indonesia have agreed to identify sectors with a view to exploit the existing investment opportunities in both countries. Minister of Trade and Industry, Dr Rob Davies and his Indonesian counterpart, Mr Enggartiasto Lukita met today during the 3rd Joint Trade Committee meeting that was followed by the South Africa-Indonesia Business Forum.
Both sides exchanged the study on trade complementarities as a basis for identifying potential tradeable sectors and goods between the two economies. In order to facilitate increased bilateral trade, the two countries agreed to work closely to facilitate the business-to-business contact and also support each other’s endeavours towards diversity exports, as well as to improve the structure of trade further.
Both ministers also agreed that identifying these sectors will ensure that business communities from both countries optimise benefits from the existing complementarities in terms of the investments. Currently investments between the two countries are non-existent and this is an opportunity for both countries to explore areas of investments and trade.
“As South Africa, we are looking for productive activities and investments interests. It is therefore paramount to interrogate the study that was done by the two to identify the challenges pertaining to investments,” says Minister Davies.
Davies added that trade between the two countries has seen a steady increase over the last two years and has a potential to grow. The two-way trade between South Africa and Indonesia experienced relative upward trend since 2012 to 2016. Thus, total trade between the two countries grew from R12 billion in 2012 to R13 billion in 2016.
The Indonesia Minister of Trade Mr Enggartiasto Lukita described South Africa as an important trading hub in the world and also a gateway for accessing African markets. According to him Indonesia was greatly pleased that South Africa is paying greater attention to Indonesia as one of strategic trade partners between Asian and (ASEAN) Association of Southeast Asian Nations.
The Business Forum provided a platform to highlight opportunities in both economies and also explore areas of collaboration and strengthening the trading partnerships between each other. Business communities from Indonesia and South Africa held business to business meetings with the hope to enter into joint ventures and partnerships.
Meanwhile, the dti will lead a business delegation to participate at the Trade Expo Indonesia in October 2017.
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Sidwell Medupe
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E-mail: MSMedupe@thedti.gov.za
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