Jakarta, Indonesia - 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.
"Our meeting today provides an opportunity to explore tangible areas of cooperation: how our businesses can partner in manufacturing, green technologies, logistics, and value-added critical mineral production.
"According to the latest data our exports to Indonesia stand at approximately R10.5 billion, while imports amount to R16.9 billion, resulting in a trade deficit of R6.4 billion. This presents a clear opportunity for us to work toward a more balanced relationship through value-added exports and technology partnerships," Botes said on Tuesday.
South Africa's key exports to Indonesia include chromium and manganese ore, with imports from Indonesia, in the main, including palm oil and leather goods.
"Our priority investment sectors include mining, manufacturing, services, infrastructure, and the green economy with particular potential in renewable energy, electric vehicles, and green hydrogen, as well as the oil and gas sector.
"Indonesia's leadership in the global nickel industry positions it as a natural partner for South Africa, whose reserves of manganese and platinum group metals are vital for battery and fuel-cell technologies.
"By integrating our strengths, we can create a sustainable electric-mobility value chain from upstream mineral extraction to downstream manufacturing and recycling. South Africa's Just Energy Transition Investment Plan, valued at over R1.5 trillion, sets out a pathway for investment in renewable energy, electric vehicles, and hydrogen technologies," the Deputy Minister said.
Collaborations on Special Economic Zones management, and e-commerce and digital innovation are also proffered.
"Our shared emphasis on industrialisation and beneficiation of critical minerals can drive new industries that supply global clean energy and technology markets.
"Enhanced policy certainty and investment protection frameworks in South Africa are designed to make such ventures both secure and profitable," he said.
The Deputy Minister reflected on the history between the two countries from Sheik Yusuf and Tuan Guru's exile in the Cape, to President Nelson Mandela's adoption of the iconic 'Madiba Shirt'.
"Our connection has always combined cultural respect with shared purpose. As we commemorate Bandung70 the first large scale AsianAfrican Conference and O.R. Tambo Month, we are reminded that our nations have long believed in a world where cooperation triumphs over competition, and where prosperity is built through partnership, not dominance.
"Today, we have the opportunity to deepen that partnership, to turn historical goodwill into practical outcomes that create jobs, build industries, and advance the development goals of both our nations.
"I am confident that this business forum will generate ideas and partnerships that strengthen trade, enhance investment, and build a sustainable bridge between our economies," Botes said.