INDONESIA, NIGERIA STEP UP DIRECT TRADE by Fardah

Jakarta, June 24, 2017 (Antara) - Indonesia and Nigeria, which are among the most populous countries in the world, realize they have untapped potential in the areas of trade and investment that are waiting to be explored further.  
   Besides this, Indonesia and Nigeria are two major economies in their regions, with economic advantages that complement each other.

        Hence, it is only natural for the trade and investment relations between the two countries to be forged and stepped up.

        Both countries are also aware that they need to address the fact that Indonesia's trade with Nigeria has, so far, been conducted through third parties, leading to inefficiency and additional costs.

        Direct trade will be more beneficial to both countries.

        Indonesian Foreign Affairs Minister Retno L.P. Marsudi, during a visit to Nigeria on June 5, 2017, conveyed to Nigerian Vice President Yemi Osinbajo, who is also the country's acting president, that bilateral trade between both nations should be conducted directly, particularly in oil and gas.
   "The acting president of Nigeria agreed that direct trade is an attempt to reduce prices," the minister stated.
   The total value of trade between Indonesia and Nigeria in 2016 was recorded at US$1.5 billion.

        Several Indonesian products exported to Nigeria include crude palm oil, furniture, and garment products. Meanwhile, Nigeria is the largest oil exporter to Indonesia from the Sub-Saharan African region.

        Nigeria is also the main destination country for Indonesia's investment in Africa, as some 14 Indonesian companies are investing in the country, including in an instant noodle factory. In addition, Nigeria has served as one of the important countries for realizing Indonesia's energy security.

        The Government of Indonesia will follow up on the establishment of the Preferential Trade Agreement (PTA) to increase the value of trade with African countries, including Nigeria.

        "The trade minister will visit Nigeria next month to discuss hurdles in the establishment of the PTA. Nigeria has expressed support to Indonesia's bid for the UN Security Council (UNSC) seat for the 2019-2020 period," the minister pointed out.

        Marsudi noted that although some Indonesian products, such as instant noodles, radial tires, pharmaceutical products, soaps, beverages, and other food products, are already well known in Nigeria, a wide room is still exists to improve trade and investment cooperation.

        To increase its exports to Nigeria, Indonesia has planned to diversify its exports and not only focus on the export of goods.

        Indonesia has offered strategic products of its aircraft manufacturer PT Dirgantara Indonesia and shipbuilding company PT PAL.

        Marsudi further stated that the Garuda Maintenance Facility (GMF), Indonesia's state-owned railway manufacturer PT INKA, and BP POM, the food and drug supervision agency, were also ready for cooperation in the fields of aircraft maintenance and supply of railway carriages as well as pharmaceutical industries.

        During the visit, a memorandum of understanding (MoU) on cooperation for aircraft maintenance between GMF and Max Air Ltd Nigeria worth $3.4 million was signed.

        According to the MoU, the GMF will undertake various maintenance activities of the Boeing 747-400 aircraft belonging to Max Air, including providing technical assistance for the onsite support operations in Nigeria.

        During the visit, Marsudi also attended the Indonesia-Nigeria business forum, which was attended by around 140 Nigerian entrepreneurs from the pharmaceutical, transportation, food and beverage, as well as manufacturing sectors, among others.

        Representatives of some business sectors from Indonesia that attended the forum, included those of the Indonesian Chamber of Commerce and Industry, the GMF, PT INKA, Indonesia Eximbank, PT Sasa Inti, and BP POM.

        "Indonesia and Nigeria have established an excellent relationship for the last 52 years, and cooperation between the two must provide concrete benefits to the people of both countries," she stated in a press release received from the Foreign Affairs Ministry of Indonesia.

        The statement was released by Marsudi after holding a bilateral meeting with her Nigerian counterpart Geoffrey Onyeama in Abuja.

        "The focus of Indonesia's foreign policy on Africa has offered a strategic momentum to enhance economic cooperation between Indonesia and Nigeria," she stated.

        The two foreign affairs ministers also focused on discussing efforts to improve trade and investment cooperation.

        Marsudi pointed out that there is still plenty of room for enhancing trade and investment cooperation between the two countries.

        Hence, she encouraged enhancing bilateral trade cooperation with Nigeria through the establishment of a PTA.

        In addition, Marsudi urged her Nigerian counterpart to support Indonesia's commitment to establishing the PTA with the Economic Community of Western African States in order to increase market access of Indonesian products to West African countries.

        "Tariff reductions and the elimination of other non-tariff barriers are keys to increasing the value of trade between Indonesia and Nigeria as well as other West African countries," Marsudi pointed out.

        In the political field, Minister Onyeama expressed his country's commitment to supporting Indonesia's candidacy as a non-permanent member of the UNSC from 2019 to 2020.

        Onyeama stated that Nigeria will offer support as Indonesia's role and contribution are not only active in maintaining stability and world peace but also in promoting cooperation among developing countries, particularly in Africa.

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EDITED BY INE/H-YH

(T.F001/A/BESSR/A/Yosep) 24-06-2017