Deputy Minister of International Relations and Cooperation, Alvin Botes, has called for deeper collaboration between South Africa and Indonesia to narrow the trade deficit and unlock new opportunities in industrialisation, green technology, and critical mineral development.
Speaking at the South Africa–Indonesia Business Forum in Jakarta ahead of President Cyril Ramaphosa’s Official State Visit, Botes underscored that stronger economic ties and innovation-driven partnerships could transform the bilateral trade relationship into one that is more balanced, sustainable, and mutually beneficial.
Addressing the Trade Deficit through Value-Added Exports
In his address, Botes noted that while trade between the two nations has grown steadily, the structure of commerce remains imbalanced. “According to the latest data, our exports to Indonesia stand at approximately R10.5 billion, while imports amount to R16.9 billion, resulting in a trade deficit of R6.4 billion,” he said.
He explained that this gap presents both a challenge and an opportunity. “We can work toward a more balanced trade relationship by focusing on value-added exports and technology partnerships that go beyond raw material trade,” he added.
South Africa’s key exports to Indonesia currently include chromium and manganese ore, while major imports from Indonesia consist mainly of palm oil, textiles, and leather goods. Botes stressed that expanding trade into advanced sectors like green hydrogen, renewable energy, and electric vehicles will ensure more sustainable growth for both economies.
Green Technologies and Critical Minerals Cooperation
Highlighting the shift toward cleaner and more sustainable industrialisation, Botes said South Africa is prioritising investment in renewable energy, electric mobility, and hydrogen production under the country’s Just Energy Transition Investment Plan, valued at over R1.5 trillion.
He pointed to Indonesia’s leadership in nickel production, a key material for batteries, as complementary to South Africa’s wealth of manganese and platinum group metals (PGMs) — both essential for electric vehicle and hydrogen fuel-cell technologies.
“By integrating our strengths, we can create a sustainable electric-mobility value chain — from upstream mineral extraction to downstream manufacturing and recycling,” Botes explained. “Indonesia’s expertise in nickel and South Africa’s leadership in PGMs make our collaboration a natural fit for building Africa–Asia clean energy supply chains.”
The Deputy Minister also proposed collaborations in Special Economic Zone (SEZ) management, digital innovation, and e-commerce, highlighting the importance of diversifying industrial cooperation beyond traditional sectors.
Strengthening Industrialisation and Investment Security
Botes emphasised that both nations share a vision of industrialisation through beneficiation — adding value to raw materials before export. He noted that South Africa’s investment protection frameworks and policy reforms are designed to attract foreign investors and ensure stability for long-term ventures.
“Our shared emphasis on industrialisation and beneficiation of critical minerals can drive new industries that supply the global clean energy and technology markets,” he said. “Enhanced policy certainty and investment protection frameworks in South Africa are designed to make such ventures both secure and profitable.”
A Partnership Rooted in History and Shared Purpose
The Deputy Minister also reflected on the deep historical and cultural ties between South Africa and Indonesia, tracing connections back to the exile of Sheik Yusuf and Tuan Guru to the Cape centuries ago — figures who helped shape the Cape Muslim community and early anti-colonial movements.
He recalled how President Nelson Mandela’s iconic ‘Madiba Shirt’ was inspired by Indonesian design, symbolising a friendship that blends culture, solidarity, and mutual respect.
“As we commemorate Bandung@70 — marking 70 years since the first large-scale Asian–African Conference — and observe O.R. Tambo Month, we are reminded that our nations have long believed in a world where cooperation triumphs over competition,” Botes said. “Our connection has always combined cultural respect with shared purpose.”
Toward a Shared Economic Future
Looking ahead, the Deputy Minister expressed optimism that the Business Forum would catalyse new ideas and partnerships that build industrial capacity, create jobs, and strengthen South–South cooperation.
“Today, we have the opportunity to deepen that partnership, to turn historical goodwill into practical outcomes that create jobs, build industries, and advance the development goals of both our nations,” Botes said.
With both countries prioritising green growth, inclusive industrialisation, and trade diversification, the South Africa–Indonesia partnership is poised to play a pivotal role in shaping a more connected and competitive Global South.