RI-South Africa Advance Strategic Trade Cooperation, Eye MSME Development

KBRN, Jakarta: Indonesia and South Africa are taking concrete steps to deepen bilateral trade ties and promote the growth of micro, small, and medium enterprises (MSMEs), following a high-level meeting between Indonesian Trade Minister Budi Santoso and South Africa’s Deputy Minister of Trade, Industry, and Competition, Zuko Godlimpi.

The meeting, held in Gqeberha, South Africa, on Friday, October 10, 2025, marked a renewed commitment to strengthening economic relations under the South-South strategic partnership framework.

“This meeting is a pivotal moment to reinforce our economic ties. We agreed to pursue new avenues of cooperation in trade and MSME development,” said Minister Budi in a statement from Jakarta on Saturday, October 11, 2025, as quoted by antarnews.com.

South Africa, he noted, is a key trading partner for Indonesia on the African continent. The minister expressed hope that enhanced cooperation would expand market access for Indonesian products such as palm oil, rubber, motor vehicles, and industrial goods.

“We welcome South Africa’s commitment to deepening economic engagement with Indonesia. This synergy opens up significant opportunities for businesses in both countries,” Budi added.

The two sides also discussed plans to revitalize the Joint Trade Committee (JTC), a bilateral forum established in 2005 to facilitate information exchange and explore potential trade agreements.

Minister Budi proposed convening the fourth JTC meeting to chart strategic steps for advancing trade, investment, and industrial collaboration. The last JTC session was held in Pretoria in 2017. He expressed hope that the next meeting could be scheduled soon in Indonesia.

“The JTC is a vital platform to address both opportunities and challenges in our bilateral trade. We look forward to hosting the fourth session to make our economic cooperation more tangible,” he said.

Indonesia also proposed a phased approach to negotiating a trade agreement, while South Africa encouraged Indonesia to submit a formal cooperation framework proposal in the near future.

From January to August 2025, total trade between the two countries reached USD 1.42 billion, with Indonesian exports amounting to USD 690.60 million and imports totaling USD 732.10 million. In 2024, bilateral trade stood at USD 2.41 billion, up 7.2 percent from the previous year.

Indonesia’s key exports to South Africa include palm oil and derivatives, bulldozers, passenger cars, copra, and natural rubber. Meanwhile, major imports from South Africa consist of alloy materials, chromium and manganese ores, raw aluminum, and refined cane sugar. ***