African countries are poised to sign trade and investment deals worth $3.5 billion with Indonesia during the ongoing Indonesia-Africa Forum in Bali. This was disclosed by Indonesia’s Vice Foreign Affairs Minister, Pahala Mansury, in a recent interview. The agreements, expected to be announced at the summit, represent a significant increase from the $600 million in deals signed during the forum’s first meeting in 2018.
One of the major deals involves a partnership between Indonesian state-owned utility company PT Perusahaan Listrik Negara (PLN) and Tanzania Electric Supply Company Ltd. The two companies will collaborate on developing geothermal energy projects, which is a sustainable and renewable energy source.
In the health sector, Indonesian pharmaceutical company PT Bio Farma has agreed to work with Ghana’s Atlantic Lifesciences Ltd. to transfer health technology. This collaboration aims to enhance healthcare services and access to medical products in Africa.
Additionally, there are discussions with Congo and Senegal about purchasing and maintaining aircraft from Indonesia’s aerospace company, PT Dirgantara Indonesia. This potential deal could boost Indonesia’s aerospace industry and support the development of aviation infrastructure in African countries.
Vice Foreign Affairs Minister Pahala Mansury highlighted the importance of Indonesia’s engagement with Africa, noting that the continent’s rich resources, especially critical minerals needed for battery production, are not fully available in Indonesia. “Indonesia will need to work with Africa because not all of the critical minerals required to produce battery materials are available in Indonesia,” he explained.
He also pointed out that the current geopolitical tensions between major economic powers present a unique opportunity for countries in the Global South to collaborate rather than compete. “Amid geopolitical tensions between economic superpowers, this is a very good opportunity for Global South countries to work together rather than treat each other as competitors,” Mansury added.
In a related development, PT Pertamina, another major Indonesian state-owned enterprise, is exploring opportunities with Guma Group Ltd. to construct a power plant in South Africa using gas supplied from Mozambique. This initiative, reported by local media outlet Bisnis, is part of Indonesia’s broader strategy to strengthen its energy partnerships in Africa.
Indonesia has been working to diversify its trade relationships beyond its traditional partners, such as China, the United States, and Japan. The country is facing economic challenges due to a slowing Chinese economy, weak commodity prices, and rising global protectionism, which have impacted its export sector. In 2023, Africa accounted for only $6.9 billion of Indonesia’s exports, less than 3% of the country’s total exports.
However, Africa’s vast natural resources and growing markets present a significant opportunity for Indonesia to expand its trade and economic footprint. As the United States and the European Union impose tariffs on China-made electric vehicles, Indonesia and African countries have the chance to work together to build a more resilient global supply chain for batteries and other critical industries.
The Indonesia-Africa Forum is expected to foster stronger economic ties and open new avenues for cooperation between the two regions. As the deals are finalized, both Indonesia and African nations stand to benefit from enhanced trade relations, technological exchange, and collaborative efforts in various sectors, including energy, healthcare, and infrastructure development.
The ongoing summit in Bali underscores the commitment of Indonesia and African countries to forge mutually beneficial partnerships and explore new opportunities for growth in a rapidly changing global economy.
