South Tangerang, Banten (ANTARA) - Indonesia's chamber of commerce, Kadin Indonesia, has signed a partnership agreement with Senegal's National Union of Chambers of Commerce, Industry and Agriculture (UNCCIAS) to strengthen bilateral investment and trade ties.
Mintardjo Halim, head of Kadin's Africa Committee, said the agreement, signed at Kadin Tower in Jakarta on Friday evening, renews and expands an existing framework between the two business groups.
He said the enhanced pact covers investment, bilateral trade, shipping and logistics, and banking.
"Therefore, if we (Indonesian business players) make investments there (in Senegal), we have legal protection," Halim told ANTARA on the sidelines of the "Indonesia-West Africa Business Meeting and B2B Networking" forum on Friday.
"If any operational issues or disputes arise, we can directly coordinate with UNCCIAS to help resolve them," he added.
Halim said Indonesia and West African nations have vast untapped potential for cooperation in agriculture, food processing, manufacturing, fast-moving consumer goods (FMCG) and logistics.
However, he said the lack of bilateral trade agreements is a major hurdle, as goods traded without preferential terms risk losing competitiveness because of steep import duties and non-tariff barriers.
He urged the Indonesian government to speed up negotiations on trade pacts with African nations, whether Preferential Trade Agreements (PTAs) or Free Trade Agreements (FTAs).
"Indonesia and West Africa have to talk about preferential trade agreement, either PTA or FTA, to reduce tariff and trade barriers, so our economies can grow together," Halim said, warning trade would otherwise struggle to grow.
Alex Rudini Sulaiman, economic affairs coordinator at the Indonesian Embassy in Dakar, urged Indonesian entrepreneurs to invest directly in manufacturing in West Africa, particularly in Senegal.
"There is immense potential there, particularly in establishing local manufacturing in Senegal, which would help significantly reduce production costs," Sulaiman said.
He said several Indonesian companies are keen to enter the Senegalese market, including agro-food firm PT Charoen Pokphand Indonesia Tbk, which is conducting a feasibility study.
Other Indonesian conglomerates have already entered the wider region. PT Bakrie & Brothers Tbk has invested in oil palm plantations in Guinea and plans to expand into mining.
"We hope this forum serves as a stepping stone that opens the door to broader economic cooperation between Indonesia and Africa," Sulaiman said.
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Translator: Uyu Septiyati Liman
Editor: Rahmad Nasution
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