Skip to main content

Indonesia eyes preferential trade agreement to boost trade with SA

From Business Day
Oct 19, 2012


AMID its push to diversify exports, Indonesia expects to seal a preferential trade agreement with South Africa, one of the fastest-growing markets in Africa.
Indonesia planned to conduct a preliminary study to assess areas of mutual needs in both countries and focus on those that would benefit the most from increased trade, the Indonesian trade minister, Gita Wirjawan, said in Jakarta this week.
"We have to clearly identify what we can offer each other and find out what is hampering trade on these products, then determine our moves. This is the necessary process to prepare for an agreement," Mr Gita said after a second joint trade committee meeting which discussed, among other things, market access and sectoral co-operation.
The study was due to begin next year with completion set for six months to a year thereafter, he said.
Trade between Indonesia and South Africa expanded 78.93% last year to $2.14bn from a year earlier. Indonesia’s exports rose 111% last year to $1.43bn, while imports surged 36.62% to $705m.
South Africa ranks 23rd as an export destination for Indonesian firms. Indonesia exports palm oil and its derivatives, rubber, vehicles and paper, while importing chemical wood pulp, ferrous waste and scrap, sugar cane, sweeteners and cotton.
The trade ministry’s international trade co-operation director-general, Iman Pambagyo, said the preferential trade agreement was needed to gain wider market access for local goods because, at present, local manufacturers were struggling with South Africa’s high import tariffs of more than 10%.
Indonesian manufacturers said that sometimes the import tariff stood at 35%, making their products far less competitive in the South African market.
South Africa’s Trade and Industry Minister Rob Davies said that before accepting Indonesia’s invitation to sign a preferential trade agreement, his country would need to consult other members of the South African Customs Union (Sacu), such as Botswana and Swaziland.
"So, we cannot commit to such an agreement already," he said, but he added that South Africa was also planning to assess complementarity between the two countries next year.
Mr Davies acknowledged that Indonesia was one of the world’s most dynamic markets with huge potential, which South Africa identified as a key destination for export diversification and investment.
For detail story visit here

Comments

Popular posts from this blog

Goverment to Build New Port in Subang or Indramayu

From The Jakarta Post
April 2, 2015

The government has changed its plan to build a new port in Cilamaya and is seeking a better location in Subang or Indramayu, West Java.

Vice President Jusuf Kalla said the government needed to build a new port but it would not be in Cilamaya.

The Vice President, who visited Cilamaya with several ministers, including Coordinating Maritime Affairs Minister Indroyono Susilo and Transportation Minister Ignasius Jonan on Thursday, said the new port would be built east of Cilamaya, either in Subang or Indramayu.

Kalla said the main reason to move the new port’s location to another regency was because waters in the area were already crowded by offshore mining activities and oil tankers transporting crude oil to Jakarta and other cities.

The government has allocated Rp 34.5 trillion (US$2.6 billion) to construct a new port, as Tanjung Priok Port is deemed too crowded.

For detailed story, visit here
The government has changed its plan to build a new port in Ci…

POSCO to lift Indonesia investment to $11 billion over next 5 years: Jakarta

From Reuters
Oct 19, 2012


South Korean steelmaker POSCO will almost double its investment in Indonesia to $11 billion over the next five years, from $6 billion currently, Chief Economics Minister Hatta Rajasa said on Friday.
The world's fourth-biggest steelmaker, already has a multi-billion dollar joint venture with Indonesian state-owned PT Krakatau Steel, the country's biggest steel producer.
Earlier this year, the South Korean firm's affiliate POSCO Engineering & Construction, formed a consortium to build two 300-megawatt power plants on Indonesia's Sumatra island, worth around $1 billion.
A POSCO spokesman in Seoul said the South Korean firm has yet to make detailed investment commitments in Indonesia, and noted other partners would jointly invest in any projects.
Foreign direct investment in Indonesia stayed strong in the second quarter, showing the G20 member remained a magnet in a troubled global economy and that changes in mining ownership rules are not cutting i…

March Inflation Limits Bank Indonesia’s Room to Cut Interest Rates

From The Jakarta Globe
April 1, 2015

Inflation increased slightly in March, data from the Central Statistics Agency, or BPS, showed on Wednesday, as prices were pushed up by higher prices for fuel and rice and continued weakening of the rupiah.

Analysts said stronger inflation would limit Indonesia’s central bank’s ability to further reduce its key interest rate. The BPS announced March’s headline inflation rate was 6.38 percent, compared with 6.29 percent a month earlier.

“This is broadly in line with our forecast and the consensus median,” said Dian Ayu Yustina, a Jakarta-based economist with Bank Danamon Indonesia.

The administration of President Joko Widodo has reformed the fuel price policy to a regulated price that can fluctuate according to the global oil price and the exchange rate.
Looking forward to the rest of the year, analysts Wai Ho Leong and Angela Hsieh from Barclays said the path of inflation was still benign.

They projected inflation to average 6.5 percent …