Govt needs to take action to boost trade with Africa

Zakki P. Hakim The Jakarta Post/Jakarta

The Indonesian government must quickly come up with an action plan to create stronger economic ties with African countries so that the recent New Asia-Africa Strategic Partnership (NAASP) bears fruit.

Senior economist at the Centre for Strategic and International Studies (CSIS), Hadi Soesastro, said the action plan must include steps to facilitate the private sector.

He prioritized direct shipping routes and direct flights between Indonesia and Africa to make it easier for businessmen meet their counterparts there.

He added that the African market has yet to be a priority due to its small market size and the absence of direct shipping routes.

Therefore, he said, the government could facilitate private sector by, for instance, providing a subsidized shipping line to cut costs in exporting to Africa.

Speaking on the sidelines of the Afro-Asian Movement and The World of Tomorrow seminar, jointly held by The Jakarta Post and CSIS, Hadi took Malaysia as an example. Malaysia, he said, has had a direct flight from Kuala Lumpur to Johannesburg for years to help connect their businessmen with the African private sector.

"I believe the direct flight must be booking loses rather than profits, but the Malaysian government has subsidized it. It's the cost that must be paid for opening a new trade market," he said.

To narrow the gap between Indonesian and African businesses, the Indonesian Employers Association (Apindo) chairman Sofjan Wanandi urged the two to get to know each other better.

"To be frank, we have never had a relationship with African businessmen before," he said.

As a follow-up to last week's Asian-African Summit, members of the Indonesian Chamber of Commerce and Industry (Kadin) will visit Africa later this year.

"The door is open, now it's time for us to use the opportunity," Sofjan said.

Minister of Trade Mari E. Pangestu had earlier said the government would start facilitating partnerships with Africa by providing more information, conducting market research and encouraging the pooling of exports to produce a sufficient volume of trade.

"To increase our trade, we will have to consider a number of gateways to penetrate the Southern, Western or Northern African markets. We must also have more promotion and information and work on financing and transportation links," she said last week.