Indonesia-South Africa Agree to Identify Economic Potentials

Indonesia-South Africa Agree to Identify Economic PotentialsThe Governments of Indonesia and South Africa agreed to identify potentials and economic cooperation opportunities of both countries in an effort to enhance trade and investment relations.

Commerce Minister Enggartiasto Lukita in Cape Town, South Africa, said on Saturday (7/22/2017) local time that the government’s policy is to open non-traditional export markets such as South Africa in particular to boost non-oil and gas exports as well as establish economic cooperation with new partners.

“South Africa is one of the countries we are looking at. Indonesia and South Africa will work closer in identifying economic potential and also seek solutions from trade barriers, if any,” Enggartiasto said.

Agreement related to the identification comes after both countries did Joint Trade Committee (JTC). One of the points to be identified by both countries is the level of suitability of import export structure between Indonesia and South Africa and vice versa.

The South African government declares that the identification of economic potentials needs to be done in order to figure out whether trade constraints have been caused by tariff or non-tariff issues.

Meanwhile Indonesia expects South Africa to be able to start negotiations related to the South African Custom Union Preferential Trade Agreement (SACU-PTA). SACU consists of five countries namely Botswana, Lesotho, Namibia, Swaziland and South Africa.

Indonesia’s desire to reach the PTA agreement with SACU members is expected to support the business community of Indonesia and South Africa in enlarging business development in both countries.