Govt needs to take action to boost trade with Africa
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.