The Indonesian government continues to strive to improve comprehensive economic cooperation with a number of countries, including actively exploring Preferential Trade Agreements (PTA) with non-traditional markets. One of the potential countries targeted is South Africa.

“It can be said that currently both countries are exploring PTA which aims to open up market opportunities. PTA is an effort to strengthen the manufacturing industries of the two countries, especially in the military equipment sector, processed food products, and agriculture," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Sunday (25/9).

On Thursday (22/9), Minister of Industry Agus accompanied the Coordinating Minister for Economic Affairs Airlangga Hartarto to meet the Minister of Trade, Industry and Competition of South Africa Ebrahim Patel on the sidelines of the Trade, Industry, and Investment Ministerial Meeting (TIIMM) in a series of the Presidency's agenda. Indonesia's G20 in Bali.

At the meeting, Coordinating Minister Airlangga said that the transition to low-carbon energy is an important aspect to achieve climate resilience that supports the environment and creates jobs.

"Indonesia's energy transition efforts towards being environmentally friendly are carried out through various national policies such as the use of electric-based vehicles by supporting the development of EV batteries that are supported by raw materials such as Nickel owned by Indonesia," he said.

South Africa itself has the Just Energy Transition Partnership with France, Germany, the UK and the United States. This experience can be learned and best practice for Indonesia in finding a suitable model to deal with climate change issues in Indonesia.

South Africa's investment in Indonesia during 2021 is USD1.46 million with a total of 14 projects. Meanwhile, Indonesia's total non-oil and gas trade with South Africa in 2021 reached USD2.8 billion, an increase of 122% compared to 2020 (USD1.3 billion). (LM)

Source: https://www.idnfinancials.com/news/44445/ri-south-africa-explore-cooperation-energy-downstream-automotive-sectors