Kalla seeks S. Africa investment

Kalla seeks S. Africa investment

Agencies, Capetown, South Africa

Vice President Jusuf Kalla met with his South African counterpart
Phumzile Mlambo-Ngcuka in Pretoria on Tuesday to discuss
opportunities for businesspeople in South Africa interested in
investing in Indonesia.

"The investment is needed not only for job creation and
poverty eradication but also to improve our economy," Investment
Coordinating Board (BKPM) chairman Muhammad Luthfi, who is in
South Africa with Kalla, said as quoted by Antara on Wednesday
morning aboard the flight from Johannesburg to Capetown.

South Africa's state-owned oil and gas company PetroSA may
invest in oil exploration and production projects in Indonesia,
as the two countries seek to strengthen ties.

"One of the agreements which could be signed next year is in
the area of minerals and energy," Mlambo-Ngcuka was quoted as
saying by Bloomberg after the meeting. "PetroSA is talking to
their counterparts in Indonesia about cooperation, including
opportunities for exploration and production in Indonesia."

South African Airways and its Indonesian counterparts are also
considering signing a cooperation agreement, which will make it
easier to travel between the two countries, Mlambo-Ngcuka said.

Kalla's trip to South Africa -- his second overseas trip this
year following a visit to China earlier this month -- is meant to
follow up on agreements signed by Susilo and South African
President Mbeki during the Asian-African Summit in April in
Jakarta.

Among the agreements are a memorandum of understanding on
agricultural development cooperation and a joint statement on the
establishment of a joint trade committee.

Many Indonesian businesses have been reluctant to get involved
in Africa, pointing to the high shipping costs and the relatively
small market size.

At present, Indonesian exports to South Africa stand at US$350
million, while its imports are at $125 million.

To boost trade, South Africa has offered a strategic
arrangement through which Indonesia could boost its trade
throughout the Southern Africa Customs Union.