INDONESIA aimed to bolster its trade ties with African nations this week at a summit in Bali, though many top African leaders opted for China’s high-profile Forum on China-Africa Cooperation in Beijing. While representatives from 29 African nations attended the Indonesia-Africa Forum, the turnout was significantly lower than the 47 nations present at the inaugural event in 2018.
Despite this, Indonesian President Joko Widodo expressed optimism, stating that the three-day forum in Bali could generate $3.5bn in business deals. The agreements cover a range of industries, including gas, aviation, and energy.
As the summit concluded on Tuesday, some delegates made their way to Beijing, where 50 African countries were represented at China’s triennial Forum on China-Africa Cooperation, underscoring the competition between the two Asian giants for influence on the African continent. Christophe Dorigne-Thomson, an expert on foreign affairs based in Indonesia, acknowledged that African leaders favoured China for the more symbolic engagement. However, he emphasised that the discussions and deals in Bali remain valuable for Indonesia’s growing ties with Africa.
Historical relations and economic focus
Indonesia’s ties with Africa date back to the 1955 Bandung Conference, where newly independent African nations gathered to promote solidarity with Asian countries. Indonesia has sought to leverage this historical connection to boost modern trade relations, especially since President Widodo took office in 2014. The Indonesian government has prioritised economic collaboration with African nations, with this year’s forum targeting six times the $600 million in deals made during the 2018 event.
Notable agreements included a potential $900 million gas project between Indonesia’s Energi Mega Persada and South Africa’s Guma Africa Group. The project aims to boost gas supplies to South Africa and Mozambique while developing a new gas power plant.
Dewi Fortuna Anwar, a senior researcher at Indonesia’s National Research and Innovation Agency, acknowledged the importance of these deals but expressed uncertainty over whether the $3.5 billion target would be met, citing a lack of mechanisms to track and ensure the completion of agreements.
Smaller deals, broader opportunities
While large-scale deals like the gas project attracted attention, much of the business done at the summit involved smaller agreements, particularly by Indonesia’s numerous micro, small, and medium enterprises (MSMEs). Elina Noor, a senior fellow in the Asia Programme at the Carnegie Endowment for International Peace, highlighted the importance of these smaller transactions, noting that MSMEs are a backbone of Indonesia’s economy and crucial for expanding trade with Africa.
In addition to export opportunities, Indonesia is seeking to import African resources, particularly lithium. Indonesia’s booming nickel industry has positioned the country as a key player in electric vehicle battery production, but it needs lithium as a vital component. Africa, with its wealth of critical minerals, is an ideal partner for Indonesia’s growing industrial demands.
Strategic diversification and Global South leadership
Expanding trade with Africa also provides Indonesia a chance to diversify away from traditional trading partners such as the US and China. With global tensions rising between the two economic superpowers, Sharyn Davies, director of the Herb Feith Indonesia Centre at Monash University, suggested that Africa could offer Indonesia a way to navigate these tensions and avoid aligning too closely with either side. ‘Africa is an ideal partner due to its wealth of critical minerals, which Indonesia seeks to access. Indonesia’s rapid industrialization also creates a growing demand for African commodities,’ she told VOA.
The summit also played a role in Indonesia’s broader international strategy. President Widodo has made efforts to elevate Indonesia’s global standing, particularly within the Global South. As one of the founding members of the Global South movement, Indonesia has positioned itself as a key advocate for both South-South and North-South cooperation. This dual focus allows Indonesia to act as a bridge builder between developing nations and established economies, enhancing its role on the world stage.
While the Africa summit may not have drawn the same level of attention as China’s forum, it demonstrated Indonesia’s commitment to fostering long-term trade relationships with African nations, emphasising economic growth, strategic diversification, and collaboration in both business and politics.
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