Indonesian and Senegalese chambers expand trade and investment pact
The agreement covers shipping, logistics and banking, while Kadin's Africa Committee called for government trade negotiations to lower barriers.
Kadin Indonesia and Senegal's National Union of Chambers of Commerce, Industry and Agriculture (UNCCIAS) have signed an expanded cooperation agreement in Jakarta, covering investment, trade, shipping, logistics and banking.
Mintardjo Halim, who heads Kadin's Africa Committee, said the pact updates an earlier arrangement between the organisations. Speaking to ANTARA during a business networking forum, he said it would give Indonesian investors in Senegal legal protection and a channel to seek UNCCIAS assistance with operational problems or disputes.
Halim identified agriculture, food processing, manufacturing, fast-moving consumer goods and logistics as areas with untapped opportunities for Indonesia and West African countries. He said high import duties and non-tariff obstacles could make goods less competitive without preferential trading terms.
He called on Indonesia's government to accelerate talks with African countries on preferential or free trade agreements, warning that trade growth would otherwise face difficulties.
Alex Rudini Sulaiman, economic affairs coordinator at Indonesia's embassy in Dakar, encouraged Indonesian businesses to establish manufacturing operations in West Africa, particularly Senegal. Local production could significantly lower production costs, he said.
According to Sulaiman, PT Charoen Pokphand Indonesia Tbk is carrying out a feasibility study as it considers entering Senegal. He also said PT Bakrie & Brothers Tbk has invested in Guinean oil palm plantations and intends to move into mining.
