Deputy President Phumzile Mlambo-Ngcuka to Host Indonesian Vice-President Jusuf Kalla, 26 - 28 September 2005

TSHWANE - The South African Deputy President Phumzile Mlambo-Ngcuka will on Wednesday 28 September 2005 hold bilateral, political, diplomatic and economic discussions in Tuynhuys, Cape Town with the Indonesian Vice-President Jusuf Kalla, who arrives in South Africa today, Monday 26 September 2005 on a three-day official visit.

Deputy President Mlambo-Ngcuka will on Tuesday, 27 September 2005 accompany Vice-President Jusuf Kalla during the National Orders Award Ceremony at the Union Buildings, Tshwane. The two leaders will later attend the South Africa-Indonesia Business Forum at the Pretoria Country Club.

Vice-President Jusuf Kalla's official visit is aimed at consolidating relations between the two countries following the success of the New Asian-African Partnership Summit co-hosted by President Thabo Mbeki and the Indonesian President, His Excellency Sosilo Bambang Yudhoyono in Jakarta on 22 April this year.

The two governments, share the view that to jump-start the second economy, and alleviate poverty afflicting their peoples, there is a need to vigorously pursue and strengthen bilateral relations and concretise greater regional co-operation between ASEAN and SADC to which the Republic of Indonesia and South Africa respectively belong.

Deputy President Mlambo-Ngcuka and Vice-President Kalla will on Wednesday 28 September 2005, in an effort to promote the ideals of South-South co-operation and advancing the cause of developing countries in engagements with the developed North, interrogate mechanisms that would help effect closer co-operation in areas of bilateral trade, diplomatic relations, economic matters, cultural exchange programmes and the global political landscape.

Vice-President Jusuf Kalla will later officiate at the handing-over ceremony on the completion of renovations to Masjid Nuru Latief, a shrine in honour of Sheik Jusuf, an Indonesian political leader who died in exile at Maccassar, outside Cape Town in the seventeenth century.

Deputy President will on behalf of President Thabo Mbeki re-iterate South Africa's condolences to the government and people of Indonesia on the Tsunami disaster that hit the Sumatra Islands on 26 December 2004. The Deputy President will also congratulate Vice-President Kale, his government and the Indonesian people on successfully managing and co-ordination of relief efforts during those difficult times.

Bilateral Trade

South Africa's main exports to Indonesia include prepared foods, pulp & paper, while importing the following products from Indonesia: vegetable products, fats & oils, plastics & rubber, timber, pulp & paper, footwear, stone & plaster. The biggest imports from Indonesia are textiles, which in 1998 amounted to approximately US$ 26 million.

Bilateral Trade Statistics (ZA Rand'000)

(Source: DTI)

Investment

Indonesian Investments in South Africa

There has been very little Indonesian investment in South Africa to date. The reason for this is that Indonesia is still very much a developing country, which has not yet reached the stage of active outward investment. However, in 1997 an Indonesian company did purchase Ostrich farms to the value of R300 million. The possibility of establishing joint ventures in the South African textile, forestry and wood-manufacturing sector is being investigated by the Embassy.

South African Investments in Indonesia

There is increasing investment by South African companies in the vast mineral reserves of Indonesia.

Gencor (Ingwe) is very active, with Iscor, Anglo-American, and Plessey also showing interest. Murray and Roberts has an office in Jakarta and is hoping to obtain civil construction contracts in the infrastructure sector. In addition, Thebe Investment has signed an agreement with Indonesian-owned trading company PT. Prima Comexindo.

One of the biggest SA IT companies, M-Web, has a huge investment portfolio to the tune of USD16 billion in Indonesia.

Technical Assistance

Indonesia has a technical assistance programme operated in conjunction with the UNDP. A number of South Africans, and citizens from other African countries have received training in Indonesia under these programmes.

ISSUED BY:
- ZANELE MNGADI ON 082 781 9332
Presidency

- RONNIE MAMOEPA ON 0829904853
Department of Foreign Affairs