At the ongoing Indonesia-Africa summit, African countries are expected to sign deals worth $3.5 billion with Indonesia, significantly surpassing the $600 million in agreements from the 2018 summit.
These deals, set to be announced during the Indonesia-Africa Forum in Bali, include key partnerships such as a collaboration between Indonesian utility PT Perusahaan Listrik Negara and Tanzania Electric Supply Co. Ltd. on geothermal energy development.
Additionally, PT Bio Farma and Ghana’s Atlantic Lifesciences Ltd. will work together on health technology transfer. Congo and Senegal have also shown interest in acquiring and maintaining aircraft from PT Dirgantara Indonesia.
Vice Foreign Affairs Minister Pahala Mansury,
“Indonesia will need to work with Africa because not all of the critical minerals that are required to produce battery materials are available in Indonesia”
“Amid geopolitical tensions between economic superpowers, this is a very good opportunity for Global South countries to work together rather than treat each other as a competitor,”
Indonesia’s plan to diversify trade
Indonesia is urgently seeking to diversify its trade beyond major partners like China, the US, and Japan, due to challenges such as a slowing Chinese economy, weak commodity prices, and rising protectionism. In 2023, Africa represented less than 3% of Indonesia’s exports, valued at $6.9 billion.
However, Africa’s resources could be crucial to Indonesia’s goal of becoming a battery production hub by leveraging its nickel reserves. With the US and EU imposing tariffs on Chinese-made electric vehicles, Indonesia and Africa have an opportunity to collaborate on strengthening the global battery supply chain.
