President Jacob Zuma Makes State Visit to Indonesia and Attends IORA Leaders’ and Business Summit 5 to 8 March
Foreign Minister Retno Marsudi and President Jacob Zuma.
Pretoria, 05 Jumadil Akhir 1438/04 February 2017 (MINA) – President Zuma to undertake a State Visit to Indonesia and attend the Indian Ocean Rim Association (IORA) Leaders’ and Business Summit
President Jacob Zuma will undertake a State Visit to the Republic of Indonesia and also attend the Indian Ocean Rim Association (IORA) Business Forum and Leaders’ Summit in the capital city of Jakarta from 5-8 March 2017, gov.za reported Thursday.
South Africa serves as the current Vice-Chair of IORA, and is preparing to take over the Chair from Indonesia during the latter part of 2017.
The Summit is significant in that it is the first such Summit for IORA, and has been convened under the theme: “Strengthening Maritime Cooperation for a Peaceful, Stable and Prosperous Indian Ocean” to commemorate 20 years of IORA’s existence.
South Africa views the IORA as the pre-eminent organisation linking Africa, the Middle East, Asia, and Australasia via the Indian Ocean. All Heads of State and/or Government from the 21 IORA Member States have been invited to attend the Summit, along with Myanmar and the Maldives which are potential future IORA Member States.
The Foreign Ministers of the seven dialogue partners have also been invited, namely, the United States (US), the United Kingdom (UK), Germany, France, Egypt, China and Japan.
The Leaders’ Summit will be preceded by an IORA Business Summit on 6 March 2017, hosted by the Indonesian Chamber of Commerce (Kadin) under the theme “lORA: Building Partnership for Sustainable and Equitable Economic Growth”, to which the Leaders of South Africa, India and Australia have been invited to deliver addresses as featured speakers.
President Zuma is scheduled to address the Business Summit on the topic “Towards Sustainable and Equitable Growth in the Indian Ocean Region”.
Explicit factors that render the Indian Ocean strategically significant, include key economic indicators, namely: the vast coastline rated as one third of the ocean waters; holding two thirds of the world’s oil reserves; carrying half of the world’s container ships and one third of the bulk cargo traffic; produces goods and services worth over US$1 trillion, with intra-IORA trade amounting to some US$777 billion.
Important region for global trade and economy development
According to the World Investment Report figures for 2014, the total Foreign Direct Investment (FDI) inflows to IORA Member States amounted to US$ 229.7 million whilst outflows from IORA Member States amounted to a total of US$ 9.3 million.
IORA represents an important region for global trade and economic development. Comprising a majority of developing and small island states, as well as larger more economically developed countries, there is significant scope for the growth of trade, investment and tourism.
President Zuma accepted an invitation from President Widodo to pay a State Visit on 8 March 2017 at the conclusion of the Summit.
South Africa and Indonesia enjoy cordial relations. In 2008, the Joint Declaration on a Strategic Partnership for a Peaceful and Prosperous Future was signed by former President Thabo Mbeki and former President Susilo Bambang Yudhoyono.
The current bilateral mechanisms that allow both countries to optimise existing cooperation are the Joint Commission for Bilateral Cooperation, and the Joint Trade Committee, signed in 2004 and 2006, respectively.
The total volume of bilateral trade between South Africa and Indonesia in 2016 was R12, 5 billion, with R3.79 billion exports from South Africa, and R9.72 billion imports from Indonesia (compared to R2.8 billion exports and R8.9 billion imports in 2015). The balance of trade is therefore in favour of Indonesia.
South Africa and Indonesia are the largest economies in their respective regions, and are endowed with natural resources. Indonesia and South Africa also have the capacity and potential to expand economic cooperation, especially investment cooperation in various sectors such as infrastructure, energy, manufacturing, and services.
South Africa’s major exports to Indonesia include chemical wood pulp, ferrous waste, iron ore, aluminium, apples, pears, and mechanical appliances. Indonesia’s main exports to South Africa include: palm oil, rubber, coconut oil, automotives, original equipment components, ceramic wares, certain chemicals, and footwear.
In recent times, South African companies have explored opportunities for investment in Indonesia, including SASOL, Old Mutual, Sanlam, Denel and the Paramount Group. (T/RS05/RS01)
Mi’raj Islamic News Agency (MINA)
