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Since the early s, Kenya has been building new economic partnerships with African, Middle Eastern and Far Eastern countries. Partners or Competitors? Moreover, the hostile treatments conducted by Western countries toward African leaders like Robert Mugabe and Muammar Ghaddafi have created deep wounds for many Africans, which will remain unhealed for a considerable time. To further enhance cooperation in human resource development and education, the Government of China will help African countries to: India-Africa Trade Statistics Source:
The main functions of the business center are as follows: The business centers should be established in the entry point countries in tandem with the Indonesia Malls.
Establishing Indonesia Malls sponsored by the Indonesian Government Learning from the experiences of China and India, it is also timely and important for Indonesia to facilitate its trade expansion to Africa with Indonesia Malls. The nature of the malls is that they should be government-sponsored private trade centers, the functions of which are to spearhead the retailing of Indonesian products.
The malls function as business outlets for Indonesian products, and should be established in the entry point countries in tandem with the business centers. Africa is perceived at least among most people in Indonesia as instable, vulnerable to conflicts, and rooted in corruption. This research is based on the following thesis: In the wake of the African Renaissance, Indonesia should formulate new strategies and approaches to anticipate the rise of Africa.
Figure 1: When the crises arose, the growth was suppressed to 4. Yet, quite surprisingly, they were able to do so. Africa experienced tremendous growth in its exports, particularly to China and India.
Africa has long been known as the largest raw material producers of products such as oil, coal, copper, diamond, coffee, sugar and meat, and this reputation has been suitably welcomed by the demands of the growing middle class in Asia with its large purchasing power. The main idea behind the HIPC and MDRI is that African governments are eligible to be given debt reliefs when they are able to, firstly, show that they have adopted sound and responsible macroeconomic policies through tightened spendings not exceeding their actual capabilities; and, secondly, show that they have prioritized development programs to provide for the poor.
Up until , as many as 34 countries in Africa were able to make use of this scheme. Meanwhile, scholars have also considered the positive developments in Africa that had made it even more competitive, prospective, and productive. These challenges have affected its regional integration, which is reflected in the low level of intra-trade between African countries. In an effort to deal with the issue, in its Summit, the African Union has decided that the discussions on the strategy to address these challenges would be its main agenda.
The issue of infrastructure and connectivity is also among the major concerns in this research, which are also related to issues such as market penetration, economic performances, market size, ports of entry, rate of trade barriers, and free trade areas. South Africa is the most advanced country in Sub-Saharan Africa.
South Africa has a long-standing relationship with Indonesia and is also the largest trade partner of Indonesia in Africa. Furthermore, South Africa is the prime mover of the SADC, the sub-regional organization in Southern Africa, and is supported with relatively good infrastructure and open economic policy. All these create a wide opportunity to make South Africa a hub or entry point for Indonesian products destined to penetrate the regional market.
The study also confirms obstacles and challenges that need to be addressed properly through various channels, in particular, the Bilateral Trade Commission and the Bilateral Joint Commission. Meanwhile, in terms of trade value as well as the presence of Indonesian companies and brands within its borders, Nigeria has strong economic relations with Indonesia. Despite all the challenges and uncertainties known to the government and private sectors, Nigeria possesses enormous potential and a profitable market.
Kenya and Ethiopia are both strong players in the eastern region of Africa. Kenya is the prime mover of the East African Community EAC , a sub-regional organization whose level of market integration is regarded as being the most advanced. EAC member countries combine to make up a profitable market and are currently focusing on improving infrastructures to smoothen the flows of goods and people.
Ethiopia alone is a substantive market, being the second most populous nation in Africa and hosting a growing middle class. Therefore, Ethiopia is a perfect place to start diplomatic engagements with Africa.
Not only is Egypt located at the crossroads of three regions Africa, the Middle East, and Mediterranean Europe , it is also blessed with a large market, an open trade policy, and free trade regimes with its adjacent regions.
This presents a wide opportunity that the Indonesian Government should optimize. Thus, Indonesia should put more emphasis on this sector by expanding access and by conducting market intelligence.
In order to provide comparative studies, the research also investigates the strategies formulated by other countries such as China, India, Australia and Malaysia in their engagements with Africa. Through these investigations, Indonesia should be able to learn from the strategies of others, and apply them with few adjustments. The research found similarities on the strategies applied by various countries when enhancing relations with Africa.
First, they always start with frequent exchanges of visits of high officials, even up to the level of head of state. This shows the importance of the country and at the same time provides the biggest opportunity for high level lobbies aiming to gain market access. The second step relates to huge commitments followed by in-time deliveries towards Africa. The use of the media as a public diplomacy tool is important and must be handled carefully so as not to create any side impressions being over- publicized.
The third step relates to the comprehensive policy package that involves synergized efforts of various Government institutions, supported by business sectors and other stakeholders.
At the moment, Africa is regarded as a potential non-traditional market, which in turn requires the Government of Indonesia to come up with new approaches and concerted efforts. Meanwhile, imports from Africa are mainly raw materials which are mainly fuels as well as primary and semi-processed raw materials for industry.
In regards to investment, there is not much investment flow from mainland African countries to record, with the exception of capital inflows from Mauritius to Indonesia which accounted for USD 0. So far, only Nigeria has accounted for several Indonesian investments with 11 companies engaged in different sectors, mostly consumer products.
Nowadays, the diplomacy is carried out in several layers, namely bilateral, multilateral and inter-regional. The NAASP promotes economic cooperation, which aimed at closer relations of business sectors and governmental facilitation to enhance economic ties through activities of trade, investment, tourism and service. As such, this research was carried out through several field studies in Africa.
In order to ease the comprehension of readers on the subject matters discussed, this book been organized as follows: The purpose of this arrangement is to give direct access for the readers to the very core of the research, namely the findings. If readers are interested to go deeper into the background and analysis of the findings, they are welcome to examine the subsequent chapters in the body of the text.
This section provides readers with background information surrounding the proceedings of the research. This chapter is an important base in the discussion to follow, namely the Concluding Essay. Bank Indonesia, in its Economic Report of Indonesia, stated that its economic growth has reached 6. The resilience was mainly the result of the tight and prudent policies implemented by the Government, which kept the economic fundamentals and macroeconomic stability strong enough to hold out against external pressures from the global financial system.
Besides that, Indonesia has a demographic structure which weighs heavily in favor of the productive age groups and a growing number of middle class. For the year , the economy is forecasted to grow by 6. This number would be the second highest among G member countries after China.
The growth will be driven mainly by the domestic economy, with investment playing an expanding role. Figure 2: Figure 3: Nevertheless, some measures must still be pursued in order to ease up the impact of the commodity prices downfall.
In other examples, rating companies such as Fitch upgraded the sovereign rating of Indonesia from Ba1 to BBB— with a stable outlook in December This is proven through several indicators such as its low budget deficit, its low debt to GDP ratio, and its controlled inflation rate.
Business has developed and it is safe enough to do business in Indonesia because its debts, government or private, are considered low risk. In the long term, trust will surely grow, and investors are welcome to shift their short term investment instruments into long term investment instruments or Foregin Direct Investments FDIs.
As far as its trade relations are concerned, Indonesia continues to gain surplus. As the trade value reached USD billion in , or 1. In , the total exports of Indonesia reached the figure of USD This increase was largely attributed to the boost in non-oil exports, valued at USD billion a Figure 4: Indonesia's Export Performance Source: Ministry of Trade Export value started to decline from January , and continued to slow down to June.
However, accumulatively, Indonesia still gained a USD This decrease was experienced by all sectors, except the industrial sector, which increased by 0.
The oil and gas sector also experienced some downturn. The table below shows the value of exports during the last quarter of , which continued to slow down to the first two months of due to the impact of the fluctuation of commodity prices and the global crises. Table 1: Thus, Indonesia attracted a foreign investment flow that grew by The flow, which stood at USD The table below shows the level of foreign investment in Indonesia based on the countries of origin in Figure 5: Enhancing domestic competitiveness through: Improving the effectiveness of trade control and trade infrastructures through: Thanks to its strong oil and gas revenue, Algeria possesses a foreign currency reserve of USD billion.
As a comparison, Indonesia has a foreign currency reserve of USD billion, enough to pay up to 6. With an economy dominated by exports of commodities, particularly oil and gas, Algeria is keen to diversify its economy. In recent years, the Algerian Government has halted the privatization of state-owned industries and imposed restrictions on imports and foreign involvement in its economy. This restriction is carried out in a selective manner, as the country, since the period of the bloody struggle for its freedom from France, has always regardedits independence in a relatively elevated manner.
This is why Western involvement in the Algerian economy has always been kept at bay, as Algeria has always been indifferent towards foreign products and investments. The imbalanced economic structure in regards to the exports of commodities and the imports of manufactured products has alarmed the Algerian Government, and as a result, it has reassessed its economic policy, even to the point of back-tracking from its commitment to a market economy.
Algeria announced a series of measures that will give preferential treatment to domestic firms over their foreign rivals. The national tender process is only accessible for foreign firms if no Algerian firms are capable to do the project. With a market of almost 36 million people, a GDP per capitaof USD 7,, and an economy which highly depends on imports, Indonesian manufactured products have a great chance to enter the Algerian market.
Future investments to enhance domestic manufacturing capacity will surely take time, amid the relatively restrictive investment sector. Bilaterally speaking, a preferential trade agreement between Indonesia and Algeria will surely pave the way towards a larger trade volume between the two countries. This market potential represents an opportunity wide open for Indonesia, given the fact that the multilateral avenue, which Algeria has taken through its application for accession to the WTO, is still under negotiation.
So far, the negotiation has taken 25 years since its formal application in Therefore, with a less competitive and rather complementary bilateral trade structure, Indonesia should use its manufactured products to balance its trade with Algeria.
From an investment point of view, Indonesia has for the last 5 years managed to accumulate knowledge on doing business with Algerians, as PT.
Along with this, WIKA gains good reputation for its quality. This experience and reputation made up a strong foundation for the presence of Indonesian companies in Algeria, which in turn will ease their process of forming joint ventures with local partners.
Through these joint ventures, the companies will then be able to benefit from the preferential treatment as local firms. This is conducted by focusing on three 3 main strategies, among others7: The enhancement of market diversification: The diversification and enhancement of product qualities: The enhancement of trade facilitation Furthermore, the Government has set the following targets for The share of non-traditional market destinations is still relatively low, which indicates that there are still a lot of potentials and wide opportunities.
CPO, fatty acid for industry, and chillers Source: Figure 8: Ministry of Trade The picture also shows that the mining sector continued to increase by 4. Apart from its market diversification strategy, Indonesia also focuses on the utilization of trade agreements, both bilateral and regional.
On a closer look, the economic growth in the sub-regions of Africa also show some interesting figures: Eastern Africa has grown by 6. Malawi 8. It is also interesting to note that the coastal areas of Africa have grown by an average of 6. In fact, this growth has started in , in which the average growth of Africa had steadily increased from 2.
With their size and influence throughout the sub-region, it is important to closely watch the development and regional role of these countries. Nigeria14 Nigeria stands as the largest African country in terms of population, with million people sharing Nigerian citizenship. From another economic point of view, in its square km of land, Nigeria is endowed with various natural resources, a predominantly large reserve of oil and gas, as well as other minerals and extensive arable land.
In Growing Africa, Where is Indonesia? Economic Potential and Profile In addition to its economic posture, Nigeria is also among the medium to high economic top growers in the world. The country recorded an average of 6. It does, however, come with some challenges. Africa has the fastest growing population, and Nigeria is in the front line of it with around But to put it in a positive view, Nigeria has a young and growing population, thus presenting traders and investors with a large and growing consumer market.
Figure 9: World Trade Organization WTO , trade profile Nevertheless, based on the interviews with several Nigerian scholars and economic experts, it could be assumed that the economic challenges are also derived from the poor infrastructure and institutions as well as the massive practices of corruption that has lead to poor policies. As a consequence, there was a de- industrialization process in Nigeria, which made the imports of consumer goods the largest component of its foreign trade structure ever since.
Realizing the flaws of its economic development policy in the past, the Nigerian Government is currently striving to diversify its economy with the manufacturing sector backed by a sound agricultural sector.
Regardless of the current economic situation, Nigeria has successfully stabilized its national politics. Nigeria, therefore, could become the gateway to enter the West African market. In the end, it would also encourage openness and the political will needed to enhance international economic relations beyond the region. In relation to that, Nigeria has also looked to other non-traditional economic partners, such as China, India, and other emerging economies.
Why Nigeria Matters to Indonesia? Thanks to the similar characteristics that they both have, Indonesia and Nigeria see each other as a new or non-traditional market waiting to be harnessed. Both countries have huge potentials, and in fact have been starting to build a strong economic relationship through tens of thousand of their businessmen even before the governments have agreed to re-evaluate their mind-sets towards each other.
In Nigeria, there are already at least 20 to 30 Indonesian companies operating, ranging from food processing, manufacturing, and pharmaceutical companies. Figure Indonesia - Nigeria Bilateral Trade Source: These initial processes were further developed into business relationships. Rampant corruption and extortion in Nigeria hampers the efforts of Nigerian entrepreneurs to develop their business relations with Indonesia, particularly when it comes to enhancing investment cooperation in the country.
One key point that could be derived from this meeting was the commitment from the Government of Nigeria that Nigeria is open to trade and investment for Indonesian businessmen. It was also suggested that based on the experience with other foreign parties, a strategy to penetrate the Nigerian market can be done, among others, by setting up a legal umbrella to protect the parties involved in the bilateral trade, fostering close cooperation between the Chambers of Commerce of both countries, opening trade offices in both countries, conducting trade missions, and exchanging visits at regular intervals.
The team reaffirmed that despite the challenges in a number of its trade and investment sectors, Nigeria still presents itself as a golden opportunity for foreign investments.
Other equally important points that were raised during the meeting relate to matters regarding the monitoring of trade, investment, and technical cooperation in Nigeria. As the second largest economy in Africa, Nigeria is the proper gateway to enter the West African market. The presence of a number of obstacles in trade and investment in Nigeria did not dampen the interests of Indonesian businessmen to continue investing in Nigeria, especially given Nigeria's huge market potential, its relatively mild competition level, its abundant natural and human resources, as well as the opportunities presented by Nigeria as the stepping stone for a broader market in Western Africa and Africa as a whole.
Therefore, Indonesia should put forward a different approach by optimizing, for example, the technical cooperation that has been designed to create "distribution agents" of Indonesian products in Nigeria. It is unnecessary for Indonesian entrepreneurs to fear competition with Chinese products in the Nigerian market, due to the fact that Indonesian products are well known for their quality. The preference on Chinese products in Nigeria is mainly due to the lack of other competing products as alternatives for the local consumers.
It is, therefore, logical to expect that Indonesian products will be able to compete with Chinese-manufactured products existing in the market. The presence of the economic influence from emerging economies such as China, India and Turkey is distinctively apparent in a number of infrastructure projects in Nigeria.
However, the lack of infrastructure, especially road and highway, can be regarded as a great opportunity for Indonesian construction companies, such as WIKA, to mastermind a number of highway development projects in Nigeria. Given its geographical location at the centre of the east coast of Africa, Kenya possesses a strategic location in the region. With a population of more than 40 million and a GDP per capita of USD 1,, Kenya has become the largest economy and the most advanced country in the Eastern African region.
Kenya considers itself as a hub in Africa and as the Eastern gateway of the continent, mainly in relation to its economic cooperation with the Asia-Pacific region. One of the examples on why Kenya is considered as being at the heart of Africa is Kenya Airways.
The table below shows the comparison between Kenya Airways and the largest carrier in Africa to date, Ethiopian Airlines, in Nov Ethiopian Airlines Kenya Airways Aircrafts in service 47 36 Aircrafts on order 36 21 Bs on order 10 9 Dedicated cargo aircrafts in service 5 0 Dedicated cargo aircrafts on order 2 1 African destinations 32 45 International destinations Africa and beyond 56 56 Global airline alliance Expected Star Alliance SkyTeam Codeshare partners 17 14 Source: Kenya is also the largest service exporter in the EAC market, and the largest investor in Uganda.
To support this, Kenya is keen to build vital infrastructures such as ports and land transportation networks. Currently, the port of Mombasa, which has been renovated and expanded, is one of the veins for the flow of goods to Africa, especially for members of the EAC. Some of the strategic infrastructure projects underway are the constructions of a railway transportation network from the port of Lamu Kenya to Addis Ababa Ethiopia , the development of a South Sudan — Ethiopia — Mombasa pipeline, and the strengthening of the Kenya — Uganda — Burundi corridor.
This shows that connectivity projects in the East African region are underway, and this could potentially provide Indonesian products with an entry point. In addition, it gives opportunities for Indonesians to participate in such development projects.
The US seems to have played a minor role in trade relations prior to Pakistan and India have persistently increased their share of trade over time. For its exports, Kenya has concentrated on the African markets with Rwanda and Egypt as key targets. In regards to investments, the country has had one of the most open regimes for FDI in Africa since its independence. The main historical sources of investment have been the UK, Germany and India as well as other European countries such as Italy, the Netherlands and France.
The manufacturing industry has a large potential to grow and create large employment. The sector would have a wide opportunity to expand if it were not because of problems such as the high costs of production, competition from cheap imports, and limited access to financing.
Furthermore, Kenya also adopts an open trade and investment policy, which enables foreign companies to come relatively freely. This relatively developed manufacturing industry has made Kenya able to produce locally processed products which have comparative advantages compared to its neighbours. It is also one of the major challenges to Indonesia in its attempts to penetrate the consumer goods market in Kenya.
In addition to that, the presence of competitors which have relatively close relations to Kenya such as Egypt, South Africa and India makes its products more expensive than other similar products. Thus, it takes hard work and the right marketing strategy to go to Kenya and its surounding regional market. For Kenya, this policy is a response to the difficulty of expecting support for economic development from the West, particularly in the area of foreign aid, which is often loaded with burdensome requirements.
Since the early s, Kenya has been building new economic partnerships with African, Middle Eastern and Far Eastern countries. What Kenya sees from Indonesia and other Asian countries is its ability to diversify its economy, micro finance development, SMEs development, and optimization of natural resources for developmental purposes. While Kenya, despite all the offers, is experiencing several challenges such as the lack of human resources, poor infrastructure and political risks. For Indonesia, Kenya is considered as a high competitive market, thanks to its open trade policy.
Thus, deepened and strengthened strategies are required to penetrate the market. This also means that besides using a strong brand strategy, the business sector needs to educate the market quite intensively in order to provide it with much more understanding on the products. On the other hand, as stipulated by several Indonesian companies who have business engagements between the two countries, Indonesia and Kenya have similar market structures.
Table 3: Indonesia - Kenya Trade Export Kenya Export Promotion Council So far, there has only been one Indonesian company who had made investments in Kenya, which is in the form of an instant noodles factory. The decision to invest in Kenya was not only to meet the domestic demand, but also to answer the demand from East Africa by making Kenya its production hub.
Through deep discussions with business sectors, here are some suggestions that can be elaborated if Indonesia is to enhance its economic diplomacy towards this region: This effort was quite successful, and products from Turkey have been accepted by the Kenyan market over time. India, on the other hand, has been empowering the Indian community in Kenya to develop business, encouraging them to import and use Indian products. Meanwhile, China has made use of its aid and investment in agriculture and infrastructure.
The EAC presents a perfect example of how regional integration can start from small groups, as they are easier to consolidate. The EAC has a combined area of 1.
On 1 July , the leaders of the EAC had signed a common market protocol in order to reduce bottlenecks at the borders. This, however, experienced delays, particularly on the issue of harmonized customs which in turn continues to hamper trade. Despite requiring its members to compromise on the free flows of goods and people, and despite the social and economic risks associated with its membership, the EAC has gained political support from its members. Despite the encouraging facts mentioned above, the EAC also faces a few serious challenges, such as: Even though questions on the establishment of a common market and legislation reform may remain unanswered, the EAC has prompted many positive changes as shown by the increase of intra-regional trade as well as state revenues through taxes, particularly VAT.
To further support regional integration, physical connectivity projects are currently being undertaken, among others: Power Grid Connectivity in Africa Source: The development of the service sector especially finance, health, and education , has been a major contributorto the economic structure of Kenya.
Infrastructure Projects in East Africa Source: But it also needs to be cautious, as the rural economy still needs to be developed to ensure the availability of consumer products and industrial raw materials. This benefit will surely increase once the connectivity projects are completed and utilized. Challenges and Opportunities for Indonesia: Both these countries have their own strengths and weaknesses, as shown in the table below. Table 4: However, government efforts to develop power from various sources and energy pooling in the region is expected to be able to encourage reduction in production costs.
Since the business climate in Kenya is relatively liberal and open, there have not been many problems faced by foreign companies in doing business or making investments. However, the main challenge is the high level of competition, especially from the economic players who already have a stronger network in Kenya.
Currently, out of the several market participants from Indonesia that has invested in Kenya, the Indomie instant noodles importer is one of the companies that still survive to develop business, and it is even planning to open a manufacturing plant this year. With its competitive market and its similar pattern of goods distribution to Indonesia, Kenya presents a huge potential for Indonesia.
This effort should also be made with an intensive and continous marketing strategy. So far, Indonesia is known as one of the capacity-building programs donors under the South-South Cooperation.
This position needs to be strengthened, especially with regards to the leading sectors and in the sectors which are needed by African countries. Technical cooperation programs should be accompanied by a strategy to seek economic opportunities that can be used later. One potential model is to develop aviation cooperation between Garuda Indonesia and Kenya Airways through the opening of flight routes from Jakarta to Nairobi. This also became one of the considerations taken when African leaders met for the establishment of the Organization of African Unity OAU and decided that Addis Ababa should host its headquarter.
Since then, Addis Ababa is often called the diplomatic hub of Africa, featuring more than foreign missions residing in the city. As efforts to synergize and harmonize regional integration started a decade ago, UNECA began repositioning programs to be synchronized and aligned with the development agenda of the AU. Indonesia is fortunate enough to have a diplomatic mission in Addis Ababa, which is also accredited to the African Union. Current state of bilateral economic relationsand its potential market For most Indonesians, and probably most people throughout the world, Ethiopia is only known as the land of war, famine, drought, poverty and disease.
This is the result of news broadcasted worldwide by the international media that has been going on since the s, and nowadays, that image may still be reflected in certain areas. Ethiopia is currently one of the fastest growing economies in Africa, and under the current leadership, has lifted itself into a new stage of development.
Infrastructures have been rapidly developed and the flow of foreign investment keeps coming, particularly after its expanded partnership with China, India, Turkey and Middle Eastern countries.
As the capital of Africa, Ethiopia certainly needs to work on its connectivity to ease up travel within Africa. That is why the government put enormous efforts to expand its national carrier, Ethiopian Airlines, in terms of increasing the number of its flights, destinations, and ground works in recent years. This has 21 Based on the observation during field research as reported at document number: With good connectivity, the problem of hunger and drought which often dominates Africa will be significantly reduced, as most food surplus can be channelled into the needy areas.
Energy distribution is also a major challenge for Africa. For Ethiopia, building hydropower plants will remain the top choice, although they are expensive. This means that there are opportunities for investors to help build hydroelectric plants in the Nile River. As far as its land transport is concerned, Ethiopia plans to expand railway and road projects throughout the country, and to connect itself to the national network of neighbouring countries such as Djibouti, Sudan, South Sudan, Eritrea, Somalia northern part , and Kenya, as depicted in the picture above.
Commitments of aid from countries such as China and India are pouring to invest in these projects. There is a strong sense of optimism among the people of Ethiopia on the country's development progress. To achieve that objective, the service sector would need to be developed quite prospectively, which is why Ethiopia has to open up opportunities for other countries, including Indonesia, to invest in services.
Some of the potential service sectors which are yet to be developed are education, health and other sectors which require skilled labour. However, its performance has been lauded by the international community for registering fast growths in the last five years, which is largely attributed to government spending.
As the powerhouse of the area, Ethiopia becomes a complement to the region, while its strong neighbour, Kenya, would provide industrial products, and South Sudan with its abundant oil reserve. The focus of development has been to increase agricultural output, which requires further expansion on infrastructure such as transportation, irrigation, as well as energy networks.
Ethiopia's good performance and stability has attracted both investment and aid for development. It is believed that the current bilateral trade between Indonesia and Ethiopia does not represent its true closeness, yet the actual trade is difficult to measure, as there have been indirect trade or trade through third parties.
Table 5: Ethiopian Customs Authority As far as investments are concerned, there had only been one Indonesian company who has invested in Ethiopia, namely Sinar Antjol manufacturer of soap, detergent, health and beauty products. Other companies such as Indofood producer of instant noodles and Tjiwi Kimia producer of paper and stationery are said to have investment plans in the near future. This success had also been influenced by promotional efforts and the positive image of Indonesia in Ethiopia.
To further strengthen bilateral relations and to protect the economic activities between the two countries, both countries have signed a Memorandum of Understanding MoU on Economic and Technical Cooperation in This serves as an umbrella agreement to work on areas of cooperation for the expansion of cooperation through more technical agreements such as the avoidance of double taxation, investment protection, air service, and so on.
Even though Ethiopia is a promising and lucrative market, it also presents a major challenge due to the existence of its closed economic system, harsh geographical conditions, inadequate connectivity and cultural differences.
It takes an extra effort for Indonesian companies who want to penetrate the Ethiopian market to get the right local partners. One of the steps that can be taken is to collaborate with a partner who is selected based on their performance in order to establish the right partner for business development. In this regard, The Government of Indonesia should provide more information regarding the potential market in Ethiopia to stakeholders from its business sectors.
A perfect place to start For Indonesia, the potentials of Ethiopia do not just stop there. The African Union is the extended version of the Organization of African Unity OAU , but with strengthened and deepened mandate to work on African prosperity and integrity.
In recent years, AU has also experienced an evolution to better accommodate the integration efforts such as through the transformation of the AU Secretariat into AU Authority, which will have even wider mandates.
These organizationshave agreed to coordinate and cooperate among each other in order to harmonize their policies of integration.
This step is a fast track approach in integrating trade and customs union, infrastructure development, Regional Economic Communities RECs , and other sectors. The AU programs are aimed at achieving regional integration through harmonizing efforts of national governments towards regional development. This is conducted through the coordination and engagement of external partners in order to gain fundings, technological know-hows and expertise on the field, while at the same time mobilizing efforts in gathering the resources and providing consultancy services and technical expertise for all members.
This means that the AU has become the supreme organization with extensive roles to enable its member countries and partners to engage in a more coordinated and synergized manner. Although the program has been arranged, its implementation still faces major obstacles, particularly regarding the provision of funds. However, among Governments, the program is considered to be very successful, especially because the African Peer Review Mechanism APRM , which was initially followed by only 10 member countries in , had increased its number of participants to 33 countries by early The implementation of this mechanism is done by a committee, which supervises, among others, the application of the political, economic, corporate governance, and the socio-economic developments in countries which had signed the MoU on the APRM.
In this regard, the Indonesian Embassy should have the opportunity to engage with the Permanent Representatives of members of AU to get insight information on the needs, potentials and opportunities for strengthening cooperation. Under the framework of the South-South Cooperation, Indonesia has the capability to offer various technical cooperation with the emphasis on cross-sectors and multi-faceted issues of development that have become a common concern for Indonesia and African countries.
In order to make good use of this capability, the Government of Indonesia should allocate technical assistance programs under the framework of AU—Indonesia, alongside those of bilateral TCDCs. Such partnership would enable Asia and Africa to find breakthroughs and new mechanisms in order to kick start cooperation oneconomic, structural transformation and development strategies.
However, this makes the cost of penetrating the Ethiopian market relatively higher compared to the cost of penetrating other countries in the region. Despite its strong economic performance, Ethiopia still suffers inadequacies due to its relatively closed financial system, its low purchasing power, and its lack of infrastructure, which results in problems such as high cost transportation and power outages.
Indonesia can also learn from other countries which have applied different strategies to Ethiopia. These strategies, among others, are: Egypt24 Strategic location presents enormous opportunity for hub Egypt has been enjoying its strategic location at the heart of three regions: The Suez Canal, which connects the Eastern hemisphere to the West, is one of the most important trade routes in the world, and it belongs to Egypt.
Egypt also holds an important role in the geopolitics of the region through regional institutions such as the African Union and the Arab League. Having the advantage of its geographical position makes Egypt a large potential to become the gateway to penetrate the markets of Europe, America, the Middle East and Africa. In , for example, tourism generated income of around USD Indonesian Embassy in Cairo Egypt exports crude oil and petroleum products, cotton, textiles, metal products, chemicals, and processed foods to major export destinations such as the US 7.
Table 7: Furthermore, Egypt is experiencing a quite severe political-economic turbulence, which also gave more contraction to the economy.
Socio-economic problems such as high unemployment, uneven income distribution, and access to education as well as health services that benefits the people would need to be addressedin order to alleviate poverty and improve living standards.
It therefore is important for Egypt to find other potential trade partners, as any other country would do, to look for alternative markets, which include emerging economies such as China, India, Turkey and Brazil.
Since Indonesia and Egypt have long historical ties and a lot in common, Indonesia should take this opportunity to deepen its relationship with Egypt. Egypt also sees Indonesia as the ideal figure that can provide a good example for the transformation and transition that Egypt is now experiencing.
Its entry into force was in July Members are granted full exemption of customs fees, charges and other taxes on agricultural goods, processed agricultural goods and industrial goods. This protocol grants duty- Protocol free entry into the US for industrial products originated in Egypt, with a specified content manufactured in Israel. The QIZ was implemented in The agreement exempts Agreement both parties from customs duties and other charges on industrial products.
Agreement Source: Ministry of Trade and Industry of Egypt, data taken in December By being regional hubs, both will benefit each other through the utilization of the free trade agreements that each country has. In addition to that, Egypt also has free trade agreements with its surrounding regions, and enjoys preferential tariffs with some countries in Europe and North America.
The advantages of these free trade agreements have been experienced by a few Indonesian food, glassware, and textile companies who have made investments in Egypt and then re-exporting the manufactured goods to other countries in different regions.
In addition to serving the local market in Egypt, these companies also made Egypt their production base in North Africa, the Middle East and Mediterranean Europe. What Indonesia can learn from other countries engagement with Egypt? If Indonesian businessmen must learn one particular strategy from other country to penetrate Egyptian market and beyond, it should be China.
This strategy is proven to be very effective, as seen in the consistency of the increased profit. The Chinese companies have not withdrawn from the Egyptian market last year but in fact new investments were pumped into Egypt worth USD 80 million this year, which reflects China's support for Egypt under all circumstances.
Relations between the leaders of the two countries have been very close, as President Soekarno of Indonesia and President Gamal Abdul Nasser of Egypt were both the founding fathers of the then largest developing country movement, the Non-Aligned Movement. Bilateral relationship was formally established in , and has been growing even since in all sectors. From an economic point of view, bilateral trade has been significantly increasing from time to time, making How to engage with Egyptian businessmen Egypt one of the most important non-traditional trade 1.
Arab people prefer personal rather than partners for Indonesia. Meanwhile, from an investment formal relations. So, it is important for point of view, growth has been increasing quite rapidly Indonesian business people to major in inter- in the last few years.
Indonesians should be ready for time- whole economic activities. However, it turns out that consuming bureaucracy in Egypt. It is important for Indonesian business persons continuously increased during this transition time. To further strengthen Indonesia-Egypt trade cooperation, Indonesia also needs to enhance its influence in Egypt. As Egypt is currently in a time of political transformation and economic recovery, it needs international help more than ever, and now is the perfect time for Indonesia to politically and economically invest in Egypt by extending the help and support that Egypt needs in order to increase the positive image of Indonesia among the Egyptian people.
Indonesia can also further optimize the capacity building programs that have been running and explore the possibilities of developing technical cooperation in other fields and to synchronize it with its economy policy toward Egypt in order to get the best result of the capacity building programs. Egypt Strengths: Indonesia and Egypt have a long-standing relationship, and both countries have signed various economic agreements.
Indonesia can assist Egypt in navigating the transition period through enhanced political ties i. The two countries have established mechanisms to address bilateral issues, such as the Joint Bilateral Commission, the Egyptian—IndonesianBusiness Council, etc. Indonesia sees Egypt as an important partner in the region, particularly in relation to its role as a hub connecting the MENA region and Europe. Thus,Indonesia can use Egypt as a production base. Egypt sees Indonesia as a close partner.
The reform movement in Egypt has compelled the government to look for assistance from the international community, and sees Indonesia as one of the suitable partners. Indonesians are not well informed about business opportunities in Egypt. Negative perception on the current situation in Egypt has hampered the interests of Indonesian business people to invest in Egypt. There is no bilateral agreement to facilitate and ease visa applications by Indonesian business people to do business in Egypt.
Egypt prefers to do most businesses and trade in large amounts. Differences in culture and behavior between Indonesia and Egypt. The far distance between Egypt and Indonesia with no direct flight. Great interest from the Egyptian side to do business with Indonesia. Despite the current political instability, Egyptis committed to improvingits national business climate.
Currently, there are as many as 1 million Indonesian students in Egypt. Indonesia should compete with China, India and Japan who progressively invest in Egypt. Industrialization in Egypt is marred by its lack of infrastructure.
South Africa27 South Africa is the most advanced economy in the continent, possessing abundant natural resources and arable land. It is a sophisticated and promising market, offering a combination of a well-developed economic infrastructure with a vibrant emerging market economy. It has advanced and modern financial systems, laws, telecommunication services, and energy infrastructures. Although the economy of South Africa is still dependant on the mining sector, it has long tried to diversify its industrial sector.
South Africa is also a major supplier of machineries, equipment tools, processed foods, chemicals, petroleum products, and scientific equipments. Moving forward through regional governments contacts Diplomatic relations between Indonesia and South Africa were established in August , and were then strengthened by the declaration of a Joint Strategic Partnership in However, these two countries have enjoyed long-standing relations long before formal ties were established.
The relationship is currently moving forward in relation to inter-regional government cooperation, which was initiated for the purpose of increasing people to people contacts, promoting direct trade as well as opening access to other regional markets. In this regard, the Province of West Java of Indonesia and the Provinces of Mpumalanga as well as Limpopo of South Africa had agreed to increase provincial cooperation on economic and technical sectors.
Although the Memorandum of Understanding on the provincial partnership is still being established, cooperation in several sectors has already been implemented. In order to strengthen the cooperation and to do further assessment regarding the plan to formalize the provincial partnership, the three provinces conducted partnership meetings on 17—21 September in Mpumalanga, South Africa.
The meeting identified several areas of cooperation and business opportunities which are related to tourism, trade and investments, as well as capacity building programs on various sectors such as fisheries, energy, mining and tea plantation.
The program of cooperation are as follows: Potential export commodities from West Java to Mpumalanga and Limpopo include pulpwood, mineral products, basemetals, textiles, machineries, vegetable products, chemical products, motor vehicles, and products made from ceramic.
The provinces face several challenges in the implementation of the cooperation. Office of the Provincial Government of West Java Today, South Africa is witnessing a growing number of middle-class people, who tend to consume more and selectively, and this has made a significant contribution towards the national purchasing power, particularly of those living in urban areas.
Meanwhile, South Africa is also heading towards market liberalization that is conducted through, among others: Trading with South Africa: What to do?
The Indonesian Government should give more attention to the existence of the 1. Furthermore, the Indonesian Embassy in Pretoria states that Indonesian businesses should also consider the following factors in their efforts to amplify the success of engagements with South Africa: Supported by transport infrastructures that connect the sub-region, South Africa has put more emphasis on those infrastructures to ensure the smooth flow of goods and people among countries in the region.
At the moment, South Africa is undertaking strategies to advance its economy, with the following objectives: Both countries share a lot in common: Furthermore, the depth of relationship between the two countries is reflected in the recent signing of the Indonesia — South Africa Strategic Partnership.
South Africa is a key player in the continent, and plays an important role in the stability of the region. The political decisions made by South Africa have often largely influenced the dynamism of intra-regional relations.
The enhancement of bilateral relations between Indonesia and South Africa has played a major role in the improvement of trade and investment access between the two countries. To date, there has been plenty of promising business opportunities, particularly in the fields of natural resources extraction, construction, agriculture, and services.
Mauritius28 Mauritius is an island state located in the Indian Ocean, consist of an area of 1, square km. Language, such as Creole mother tongue , English and French are commonly spoken by the natives, while Asian languages such as India, Pakistan, and China are commonly spoken by the migrants population.
For Mauritians, the languages form a modality to facilitate communication with the foreign communities, in order to promote economic relations and cooperation. The policy includes investment facilitation, simplified procedures for FDI, and the tax reform. The objectives of both agreements are to create enabling environment to attract investments, as well as to protect the companies that invest in Mauritius. Economic Reform towards an Open Economy Since , the Mauritian Government has launched an economic reform program which aims to open up its economy, facilitate business, improve investment climate and intensify the flow of Foreign Direct Investments FDIs as well as skilled workers.
Within the past 4 years, there have also been fiscal policy reforms. Among those policy reforms are the simplification of business permits and the harmonization of tax rates corporate tax and income tax. The various reforms that Mauritius had carried out have contributed to its resilience in dealing with the global economic recession and the Eurozone Crisis.
Furthermore, to overcome the crisis, the Mauritian Government launched an Additional Stimulus Package ASP in order to enable the government, bank and companies to have a burden sharing measure and to cope with the effect of the crisis.
On the contrary, the Eurozone Crisis also creates an opportunity for Mauritius to obtain market shares of the French- speaking countries in Africa and beyond. However, there is an indication that those investments are not entirely or originally coming from Mauritius, as most of them come from foreign companies which invest in Mauritius. Offshore companies are considered more profitable than onshore companies because the tax rates applied to them are very low, and could even be as low as zero per cent.
Moreover, offshore companies are also considered easier to manage and have more confidentiality assurances than the on-shore ones. Due to its strategic location in the Indian Ocean, around 2, km from the Southeast coast of Africa, Mauritius had positioned itself as a hub in the trade route which links Asia to Africa. In the past few years, Africa has become more and more significant to Mauritius, which is why the Mauritian Government envisaged Mauritius as a strategic gate to Africa, especially for the financial and business sectors.
Thus, Mauritius enjoys preferential access to those countries. Although Mauritius views Africa as a promising market, it also realizes that there are still many obstacles in entering the African market. Some of the obstacles relate to logistics, infrastructure and connectivity. The poor connectivity in Africa has made travel expenses from Mauritius to Africa higher than the travel expenses from Mauritius to Asia.
Furthermore, the lack of information, the low business facilitation, the uncertainty of business policy, and the under developed banking sector in mainland Africa are also among the main obstacles for penetration into the African market. In order to overcome these challenges, Mauritius had developed a particular strategy to enter the African market by targeting specific countries which have good connectivity such as Kenya, Senegal, Nigeria, and Egypt.
Indonesia should learn from this strategy. Thanks for telling us about the problem. Return to Book Page. Meyongsong Imam Mahdi: Diriwayatkan dari Abdullah r.
Ketika kami sedang bersama Nabi saw. Karen itu, kami berkata, "Ya Rasulullah, sekilas tadi kami melihat di wajahmu sesuatu yang kami tidak senang melihatnya. Allah telah memilihkan untuk kami kehidupan akhirat d Diriwayatkan dari Abdullah r. Allah telah memilihkan untuk kami kehidupan akhirat dari kehidupan dunia. Dan sesungguhnya Ahlul Baitku akan dibunuh sesudahku, menghadapi bencana, terusir, dan dikejar-kejar, sampai kelak datang suatu kaum pemilik bendera-bendera hitam dari arah timur sana, yang menuntut kebenararan.
Orang-orang tidak memberikannya. Mereka pun berperang dan akhirnya meraih kemenangan. Mereka memberikan apa yang mereka minta, tetapi mereka tidak mau menerimanya. Mereka pun menyerahkannya kepada seorang laki-laki dari Ahlul Baitku.
Lalu, ia memenuhi bumi ini dengan keadilan, sama seperti dulu mereka memenuhinya dengan kezaliman. Karena itu, barangsiapa di antara kalian mengalami zaman itu, hendaklah ia mendatanginya.
Sekalipun harus merangkak di atas salju. Sebab, ia adalah al-Mahdi. Get A Copy. Paperback , pages. Published May by Pustaka Hidayah first published More Details Original Title.
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