Africa-Indonesia investment forum targets $3.5Bn in deals

Second Indonesia-Africa Forum (IAF) underway in Bali, Indonesia, almost clashing with the Forum on China–Africa Cooperation.
Zanzibar President Mwinyi woos Indonesia investors to Zanzibar as he eyes a pie of the $3.5Bn in investment deals.
The forum has, however, attracted far fewer participants from Africa compared to the 2018 meeting.

The Africa-Indonesia Investment Forum 2024 which is currently underway in Bali, Indonesia, is expected to generate a whopping $3.5 billion worth of investments. In attendance is the Zanzibar President and Chairman of the Revolutionary Council, Dr Hussein Mwinyi. President Mwinyi is representing the Tanzanian Union President Dr Samia Suluhu Hassan and is in the company of several other African Heads of State.

Present at this Second Indonesia-Africa Forum (IAF), include presidents from Zimbabwe, Rwanda, Ghana and Liberia among others. This High-Level Forum on Multi-Stakeholder Partnerships (HLF MSP) is been held concurrently with the IAF and has attracted well over 855 participants.

The event was, however, largely snubbed by key leaders from Africa, who appear to have instead trooped to Bejing for the Forum on China–Africa Cooperation. Overall, only about 29 nations made it to Bali for the summit, compared with 47 African countries that showed up in the maiden 2018 forum.

Africa-Indonesia Forum demonstrates Jarkata’s role in global economy

On the other hand, the HLF MSP, organised by the Indonesian Ministry of Foreign Affairs and the National Development Planning Agency (Bappenas), has over 1,500 participants, from African countries as well as representatives from the larger Global South nations.

“MoUs will be signed between Indonesian entities and Tanzanian organisations, including the Tanzania Medicines and Medical Devices Authority (TMDA) and the Indonesian National Agency of Drug and Food Control (BPOM),” a press release quotes the president.

“This will help us control and learn about the drugs and medical equipment that we import,” he said noting that the Zanzibar-Indonesia cooperation will boost sector growth on the island.

Notably, the MoU was signed by Dr Adam Fimbo, Executive Director of the Tanzania Medicines and Medical Devices Authority (TMDA) and Dr Taruna Ikrar, Chairman of Indonesia’s Food and Drug Control Authority. Other MoUs expected to be signed at the event are with the Tanzania Investment Centre (TIC), the Tanzania Fertiliser Regulatory Authority (TFRA) and the Petroleum Development Corporation (TPDC).

The MoUs will serve to improve cooperation in drug registration, inspection and information sharing and grow Zanzibar-Indonesia cooperation in general. “Zanzibar stands to benefit, and has huge growth potential in its partnership with Indonesia in various sectors,” the president said.

He cited areas like agriculture, seaweed farming, oil and gas extraction, tourism and port development, all of which, the president emphasized, would be in line with the island’s Blue Economy framework.

“Tanzania is committed to collaborating with Indonesia to boost trade and achieve the goals of ‘the Africa we want.’ With a shared vision, we aim to align Indonesia with the African Agenda 2063, which is the continent’s strategic framework for inclusive and sustainable development,” he added.

The president expressed his satisfaction with the potential gains of the forum saying even the very impressive turnout of investors is evidence enough of the benefits that stand to be reaped from the forum.

Escorting the president are high level dignitaries from the government including the Minister of State in the President’s Office for Labour, Economy and Investment Zanzibar, Mr. Sharif Ali Sharif; Indonesia’s Deputy Minister for Foreign Affairs, Mr. Pahala Mansury; Tanzania’s Minister for Minerals, Mr. Anthony Mavunde and Tanzania’s Ambassador to Indonesia, Mr. Makocha Tembele.

These high level dignitaries are backed with Tanzanian institutions such as the Zanzibar Investment Promotion Authority (ZIPA), the Tanzania Investment Centre (TIC), the Tanzania Private Sector Foundation (TPSF) and the Tanzania Chamber of Commerce, Industry & Agriculture (TCCIA).

Zanzibar-Indonesia trade growth trajectory

As of 2022, Tanzania exports to Indonesia clocked $32.3 million, the media communiqué reported. The main products exported from Tanzania to Indonesia were cloves ($12.4 million), cocoa beans ($11.8 million), and raw tobacco ($4.05 million).

“During the last five years the exports of Tanzania to Indonesia have increased at an annualized rate of 5.08 per cent, from $25.2 million in 2017 to $32.3 million in 2022,” read the report in part.

“However, we are still not satisfied with these figures, because they have not shown the true potential of Indonesia and Tanzania. Both countries need to promote direct trade considering that many products of the two countries are obtained through third countries or intermediaries. ” the report quoted the president.

“This year, there will be two companies from Indonesia that will open factories in Tanzania, namely soap and body lotion factories in Dar es Salaam and clove leaf oil in Pemba,” he announced.

“Indonesia with a population of more than 260 million people and a GDP of $1.04 trillion and as a member of the G20 offers Tanzania huge trade cooperation opportunities through the Preferential Trade Agreement (PTA),” the report reads.

Previously, the Indonesia’s state-owned oil and gas company, Pertamina, and the Tanzania Petroleum Development Corporation (TPDC) inked a partnership pact marking a significant step for the entire crude oil value chain in Tanzania.

The pact covers both upstream and downstream sectors of the oil and gas industry and includes potential investment opportunities in Compressed Natural Gas (CNG) stations, Mini Liquefied Natural Gas (LNG) supply, and the management of the Mnazi Bay Gas Block.

Notably, in July this year, the Indonesian Ambassador Tri Yogo Jatmiko presided over the signing of yet another Memorandum of Understanding for a natural gas-to-urea manufacturing facility between PT Essa Industries Indonesia Tbk and the Tanzania Investment Centre (TIC), Tanzania Fertilizer Regulatory Authority (TFRA), and Tanzania Petroleum Development Corporation (TPDC).

That event was attended by Tanzania’s Minister of Investment, Hon. Kitila Mkumbo, and the Secretary General of the Ministry of Energy, Eng. Felschemi Mramba.

“This inclusive project facilitated by PT Essa represents a concrete implementation of the Indonesia-Tanzania cooperation commitment,” the Indonesian Ambassador said.

Indonesia president visit to Tanzania

This growth in cooperation follows a recent visit to Tanzania by Indonesia’s President Joko Widodo’s visit to Tanzania and the subsequent visit to Indonesia by President Samia Suluhu Hassan to grow Zanzibar-Indonesia cooperation.

“The project will also support advancements in the natural gas and fertilizer sectors in Tanzania and neighboring countries,” President Samia said.

Following that meeting, Indonesian Ambassador Tri Yogo Jatmiko, along with a delegation from the Bali Regional Parliament led by its Chair, Mr. I Nyoman Adi Wiryatama, met with the Chair of the Tanzania Tourism Board (TTB), Hon. Dr. Ramadhani Dau, and TTB Director General, Mr. Ephraim Balozi Mafuru last month in Dar es Salaam.

That meeting aimed to explore potential tourism cooperation between the two countries and grow Zanzibar-Indonesia cooperation in general.

The officials held lengthy talks which are expected to bear fruit in the coming months. Among other things that were discussed is the potential for holding a sister city relationship between Denpasar and Dar es Salaam and in so doing, develop collaboration in tourism marketing, and strategic investments between Indonesia and Tanzania.