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19 April 2005

Jakarta – South African President Thabo Mbeki has today, Tuesday – 19 April 2005 - arrived in Indonesia ahead of his scheduled State Visit to Indonesia from Tuesday to Wednesday, 19 to 20 April 2005.

The South African delegation includes Mrs Zanele Mbeki; Minister of Foreign Affairs, Dr Nkosazana Dlamini Zuma; Minister of Trade and Industry, Mandisi Mpahlwa;, Minister of Land and Agriculture, Thoko Didiza; and Minister of Science and Technology, Mosibudi Mangena.

During the State Visit, President Mbeki is scheduled to have bilateral political and economic discussions with Indonesian President-General Susilo Bambang Yudhoyono during which discussions are expected to focus on the expansion and consolidation of bilateral relations between both countries, the Africa-Asia Summit to be hosted from 22 to 23 April 2005 and the impact of this on the consolidation of relations between both continents – Africa and Asia and other issues of mutual significance including the reform of the United Nations and all its institutions.

Both South Africa and Indonesia have played a crucial role in advancing the cause of the South and in the promotion of North-South dialogue. It is significant to note that whilst Indonesia hosted the Bandung Asia-Africa Conference of 1955, South Africa was also represented by the African National Congress in the event. The conference laid a firm foundation for solidarity between Africans and Asians in the struggle against colonialism and apartheid and led to the formation of the Non-Aligned Movement (NAM).

A joint commission has been established between the two countries to ensure a more co-ordinated approach in pursuit of common bilateral agreements that have been signed between the two countries and they include:

* politics
* trade
* tourism
* education
* culture.

Trade between South Africa and Indonesia has expanded fast (by over 300% since 1993) with the trade balance in favour of South Africa. There exist numerous opportunities for South African companies in the fast-expanding mining, infrastructure and energy sectors (oil and gas). There are also excellent opportunities for co-operation in the forestry sector, as Indonesia is a major producer of hard-wood products and pulp, while South Africa is a world player in soft-wood production and the supply of pulp.

Bilateral Economic Relations

The possibility of establishing joint ventures in the South African textile, forestry and wood-manufacturing sector is being investigated by the Embassy.

South Africa's main exports to Indonesia include prepared foods (i.e. dried fruit, fruit cereal, fruit juices, etc.), pulp and paper, while importing the following products from Indonesia: vegetable products, fats and oils, plastics and rubber, timber, pulp and paper, footwear, stone and 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)

Year: 1994
SA Exports: 268,422
SA Imports: 266,694
Total Trade: 535,116

Year: 1995
SA Exports: 527,865
SA Imports: 366,208
Total Trade: 894,073

Year: 1996
SA Exports: 742,940
SA Imports: 480,414
Total Trade: 1,223,354

Year: 1997
SA Exports: 1,101,625
SA Imports: 638,020
Total Trade: 1,739,645

Year: 1998
SA Exports: 500,396
SA Imports: 904,867
Total Trade: 1,405,263

Year: 1999
SA Exports: 781,692
SA Imports: 1,164,346
Total Trade: 1,946,038

Year: 2000
SA Exports: 785,965
SA Imports: 1,423,118
Total Trade: 2,209,083

Year: 2001
SA Exports: 911,680
SA Imports: 1,318,533
Total Trade: 2,230,213

Year: 2002
SA Exports: 1,055,843
SA Imports: 1,929,926
Total Trade: 2,985,769

Year: 2003
SA Exports: 1,228,433
SA Imports: 1,911,622
Total Trade: 3,140,055

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 are 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 South African information technology companies, M-Web, has a huge investment portfolio to the tune of US$16 billion in Indonesia.

Africa-Asia Summit (AASROC)

President Mbeki’s State Visit to Indonesia will be followed by the Africa–Asia Summit, co-hosted by South Africa and Indonesia, and the Commemoration of the historic 1955 Bandung Conference.

The Africa–Asia Summit in Jakarta is scheduled from Friday to Saturday, 22 to 23 April 2005.

On Sunday, 24 April, President Mbeki will attend the Commemoration Ceremony of the 1955 Bandung Summit in Bandung.

The Conference will bring together leaders of Africa and Asia as well as the United Nations Secretary-General Kofi Annan in the context of building and consolidating strategic south-south relations between the two continents.

Secretary-General Kofi Annan is expected to brief Conference on the reform of the United Nations.

The opportunity of co-hosting the Asia-Africa Summit has drawn the countries closer and provided a base for a common vision on regional and global issues. Both countries have identified trade, investment and tourism, education, science and technology as well as people to people cooperation as their priorities.

Programme for AASROC and related events

* AASROC Ministerial Meeting Wednesday, 20 to Thursday, 21 April 2005
* AASROC Summit Friday, 22 to Saturday, 23 April 2005
* Golden Jubilee Commemoration Sunday, 24 April 2005

Side Events
* Asian-African Business Summit Thursday, 21 to Friday, 22 April 2005
* Trade Fair Monday, 18 to Friday, 22 April 2005
* World Renewable Energy Conference Sunday, 17 to Thursday, 21 April 2005
* Asian-African Workshop on the Role of Women and Youth in furthering Asia Africa Co-operation Tuesday, 19 April 2005

President Thabo Mbeki to Pay a Working Visit to Singapore

President Mbeki will interrupt his visit to Indonesia by paying a working visit to Singapore on Thursday, 21 April 2005, for bilateral political and economic discussions with his counterpart, President SR Nathan.

President Mbeki will also hold discussions with Prime Minister Lee Hsien Loong on conclusion of which a Memorandum of Understanding (MoU) will be signed between both countries.

President Mbeki is also expected to receive a courtesy call from Senior Minister Goh Chok Tong, meet with Singaporean Captains of Industry and deliver a public address organised by the Singaporean Foreign Ministry and Institute of Southeast Asian Studies.

Economic Bilateral Relations

Bilateral Trade Statistics (ZA Rand'000) (Source DTI)

Year: 1994
SA Exports: 1,260,470
SA Imports: 996,974
Total Trade: 2,257,444

Year: 1995
SA Exports: 1,092,420
SA Imports: 1,178,756
Total Trade: 2,271,176

Year: 1996
SA Exports: 1,619,106
SA Imports: 1,278,367
Total Trade: 2,897,473

Year: 1997
SA Exports: 1,108,666
SA Imports: 1,187,730
Total Trade: 2,296,396

Year: 1998
SA Exports: 830,311
SA Imports: 1,610,225
Total Trade: 2,440,536

Year: 1999
SA Exports: 1,039,374
SA Imports: 1,372,309
Total Trade: 2,411,683

Year: 2000
SA Exports: 1,581,939
SA Imports: 1,459,267
Total Trade: 3,041,206

Year: 2001
SA Exports: 2,061,880
SA Imports: 1,488,177
Total Trade: 3,550,057

Year: 2002
SA Exports: 1,839,156
SA Imports: 2,233,000
Total Trade: 4,072,156

Year: 2003
SA Exports: 1,796,017
SA Imports: 2,155,132
Total Trade: 3,951,149

President Mbeki is expected to return to South Africa on Monday, 25 April 2005.

Enquiries: Ronnie Mamoepa
Cell: 082 990 4853

Issued by: Department of Foreign Affairs
19 April 2005