RI, S AFRICA FOSTERING FURTHER COOPERATION

By Andi Abdussalam


        Jakarta, March 20 (ANTARA) - Indonesia and South Africa, two countries with vast potentials to share with each other, have renewed their commitment to increasing their bilateral cooperation in the economic and political fields.

        The two countries renewed their commitment when President Susilo Bambang Yudhoyono toured South Africa this week to reciprocate the visit of his South African counterpart Thabo Mbeki who visited Indonesia in 2005.

        "I am optimistic that cooperation between the two countries could be enhanced further, particularly after the signing of a joint strategic partnership cooperation," Yudhoyono, who was on a visit to South Africa from March 14 to 18, told a joint press conference with Mbeki.

        The optimism of the Indonesian president was in line with expectations of investors of both nations to establish business cooperation.

        According to South African President Thabo Mbeki, South African investors have expressed interest in doing business in Indonesia. Therefore, the South African and Indonesian governments need to promote their economy to their respective businesspeople.

        There are three steps which need to be taken in boosting cooperation between the two countries. Firstly, both governments need to issue effective business policies, regulations and mechanisms on expanding economic cooperation.

        Secondly, the private sector needs to be more active in making approaches in seeking business opportunities which might be undertaken and developed.

        And thirdly, both governments needed to provide a support system like banks and transportation facilities such as air and land transportation means.

        Indonesian business community can benefit from South Africa's strategic position as regional economic powerhouse and its strategic location as a hub for travel to other countries within the African region.

        Likewise, with a population of more than 220 million, Indonesia is a potential market for South African products. Indonesia can also function as a catalyst for South Africa to penetrate the Southeast Asian market.

        According to President Yudhoyono, South Africa is a country with a growing economy while Indonesia is the largest economy in South East Asia. If the potentials of the two countries were combined under a joint cooperation it would bring a real benefit to the people of the two countries.

        Yudhoyono said the two-way trade increased by 28 percent in 2007 if compared with the previous year. "The increase will be bigger if new opportunities are jointly explored," the president said.

        Trade between South Africa and Indonesia, which established ties in 1994, has been expanding rapidly. There aret numerous opportunities for South African companies in the fast-expanding mining, infrastructure and energy sectors (oil and gas).

        There are also excellent opportunities for cooperation in the forestry sector, as Indonesia is a major producer of hard-wood products and pulp, while South Africa is a world player in soft-wood production and the supply of pulp

        Indonesia is a prominent "South" country, and combined with its strong interest in the Indian Ocean Rim (IOR- ARC) and the plight of the developing countries is a strong ally in promoting the needs and aspirations of the developing world.

        South Africa's main exports to Indonesia include prepared foods (i.e. dried fruits, cereals, fruit juices etc.), pulp & paper, while its imports from Indonesia include vegetable products, fats & oils, plastics & rubber, timber, pulp & paper, footwear, stone & plaster.

        Both heads of state also dwelled on matters relating to the energy crisis facing both countries, and how to overcome it in boosting their economic growth.

        Therefore the two countries reached an agreement to increase the use of clean energy, energy diversification and technology transfer with a view to bringing about a better environment especially in view of the fact that energy is currently dominated by natural oil, which is not friendly to the environment.

        Both heads of state pointed out that energy is an important issue whose problems need to be solved.

        Palestine

        Besides fostering economic cooperation, Indonesia and South Africa also agreed to increase cooperation in solving international issues.

        Indonesia and South Africa, which co-chaired the Asian-African Summit in Indonesia in 2005, are currently formulating the correct form of capacity building assistance for Palestine ahead of the Asian-African Conference on Palestine to be held in Indonesia in May 2008.

        "Indonesia, South Africa , Palestine and a few other parties are formulating the right format of capacity building assistance for Palestine," the Indonesian leader said.

        The capacity building assistance to Palestine should of course be tailored to Palestine's needs if it was to be effective.

        "The biggest challenge being faced in preparing it is the fact that Palestine's unity and integrity had not yet crystallized," President Yudhoyono said. (T.A014/A/HNG/A/E002) (T.A014/A/A014/A/E002) 20-03-2008 22:15:38