Jakarta: Deputy Minister of International Relations and Cooperation, Alvin Botes, believes that stronger collaboration and partnership is key to reducing the trade deficit between South Africa and Indonesia. The Deputy Minister was addressing the South Africa-Indonesia Business Forum held in Jakarta ahead of the Official State Visit of President Cyril Ramaphosa.
According to South African Government News Agency, Botes emphasized the importance of exploring tangible areas of cooperation, such as partnerships in manufacturing, green technologies, logistics, and value-added critical mineral production. Current trade data indicates that South Africa’s exports to Indonesia are approximately R10.5 billion, while imports stand at R16.9 billion, resulting in a trade deficit of R6.4 billion. Botes sees this as an opportunity to work toward a more balanced relationship through value-added exports and technology partnerships.
South Africa primarily exports chromium and manganese ore to Indonesia, while importing goods like palm oil and leather. Botes highlighted key investment sectors, including mining, manufacturing, services, infrastructure, and the green economy, with a focus on renewable energy, electric vehicles, and green hydrogen. He noted that Indonesia’s leadership in the global nickel industry makes it a natural partner for South Africa, which has reserves of manganese and platinum group metals essential for battery and fuel-cell technologies.
The Deputy Minister also suggested collaborations in Special Economic Zones management, e-commerce, and digital innovation. He emphasized the shared emphasis on industrialization and beneficiation of critical minerals to drive new industries that supply global clean energy and technology markets. He assured that South Africa’s enhanced policy certainty and investment protection frameworks are designed to make such ventures secure and profitable.
Reflecting on the historical ties between the two countries, Botes mentioned the cultural connections dating back to Sheik Yusuf and Tuan Guru’s exile in the Cape and President Nelson Mandela’s adoption of the iconic ‘Madiba Shirt’. He noted that as both nations commemorate significant events like Bandung@70 and O.R. Tambo Month, there is a reminder of a long-standing belief in cooperation over competition.
Botes expressed confidence that the business forum would generate ideas and partnerships that strengthen trade, enhance investment, and build a sustainable bridge between the economies of South Africa and Indonesia.