INDONESIA-SOUTH AFRICA INCREASE TRADE
Indonesia and South Africa are seeking to increase bilateral trade and investment ties through direct facilitation in the banking and transportation sectors.
Business relations between the two countries are limited due primarily to the absence of banking and transportation facilities, Trade Minister Mari Pangestu said Monday.
"We cannot not directly export most of our products to South Africa because of the transportation problem, Most of our goods have to be reexported through Dubai and other countries. It is this sort of problems that we need to resolve soon," said Mari.
Mari was speaking after accompanying Vice President Jusuf Kalla to a meeting with visiting South African Deputy President Phumzile Mlambo-Ngcuka.
Mari said that more trade would be unlikely in the near future unless the trade and investment infrastructure between the two countries was improved in order to allow businesses to work together..
Mari will lead an Indonesian trade delegation to South Africa in May as part of the effort to establish such infrastructure and promote Indonesian products and firms at a trade exhibition there.
"We need to boost promotion and provide more opportunities for Indonesian businesspeople. In general, South Africa is a gateway for entering other African markets. That is why we will attend the trade exhibition there," she said.
Last year, two-way trade between Indonesia and South Africa was valued at US$577 million, with Indonesia mostly exporting palm oil and rubber products, while South Africa sent minerals to Indonesia.
Indonesia also sells garments, textiles and electronic products to South Africa and buys fertilizer from that country, although trade volumes are limited.
Indonesia hopes to increase its exports of other manufactured products to South Africa and other countries on the continent so as to reduce unemployment at home.
At present, unemployment -- both open and concealed -- stands at more than 45 million people.
The government is currently working to revive the country's labor-intensive manufacturing sector, which has yet to recover from the devastating impact of the late 1997 Asian financial crisis.
Meanwhile, during a joint press conference with Kalla, Vice President Mlambo-Ngcuka said there is "greater opportunity in open-cut mining in Indonesia than there is in South Africa" and that South African companies should explore coal-mining opportunities in Indonesia.
"I actually don't think that South African companies realize this. This is some information that we intend to take back so that we can encourage our companies to explore more business opportunities here," she said.
Vice President Kalla said Indonesia hoped to see the participation of South Africa in developing the country's coal-liquification industry.
Business relations between the two countries are limited due primarily to the absence of banking and transportation facilities, Trade Minister Mari Pangestu said Monday.
"We cannot not directly export most of our products to South Africa because of the transportation problem, Most of our goods have to be reexported through Dubai and other countries. It is this sort of problems that we need to resolve soon," said Mari.
Mari was speaking after accompanying Vice President Jusuf Kalla to a meeting with visiting South African Deputy President Phumzile Mlambo-Ngcuka.
Mari said that more trade would be unlikely in the near future unless the trade and investment infrastructure between the two countries was improved in order to allow businesses to work together..
Mari will lead an Indonesian trade delegation to South Africa in May as part of the effort to establish such infrastructure and promote Indonesian products and firms at a trade exhibition there.
"We need to boost promotion and provide more opportunities for Indonesian businesspeople. In general, South Africa is a gateway for entering other African markets. That is why we will attend the trade exhibition there," she said.
Last year, two-way trade between Indonesia and South Africa was valued at US$577 million, with Indonesia mostly exporting palm oil and rubber products, while South Africa sent minerals to Indonesia.
Indonesia also sells garments, textiles and electronic products to South Africa and buys fertilizer from that country, although trade volumes are limited.
Indonesia hopes to increase its exports of other manufactured products to South Africa and other countries on the continent so as to reduce unemployment at home.
At present, unemployment -- both open and concealed -- stands at more than 45 million people.
The government is currently working to revive the country's labor-intensive manufacturing sector, which has yet to recover from the devastating impact of the late 1997 Asian financial crisis.
Meanwhile, during a joint press conference with Kalla, Vice President Mlambo-Ngcuka said there is "greater opportunity in open-cut mining in Indonesia than there is in South Africa" and that South African companies should explore coal-mining opportunities in Indonesia.
"I actually don't think that South African companies realize this. This is some information that we intend to take back so that we can encourage our companies to explore more business opportunities here," she said.
Vice President Kalla said Indonesia hoped to see the participation of South Africa in developing the country's coal-liquification industry.
posted by Zumrowi Yunus at
8:56 PM
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