Indonesia and Africa reached a new milestone of cooperation by the successful convening of the first ever Indonesia-Africa Forum (IAF) held on 10–11 April 2018 in Bali, Indonesia. The forum not only reinforced the existing strong relations between Indonesia and Africa forged since the 1955 Asia-Africa Conference, it paved new avenues for economic cooperation. IAF resulted in concrete economic cooperation amounting to USD 586,56 million of business deals in sectors of strategic industries, infrastructure, financing, mining, textile, aircraft maintenance and trade in commodities.
Infrastructure was one of the most highlighted issues in the forum, as both Indonesia and Africa regards this sector as a high priority for future development. According to the Global Infrastructure Outlook from Global Infrastructure Hub, the investment needs for various infrastructure projects in Africa from 2016 to 2040 amounts to USD 6 trillion, equaling to 5.9% of GDP dedicated to infrastructure within this period. Meanwhile, Indonesia forecasted the need of USD 1.7 trillion in the same period.
The Indonesian Government is committed on the infrastructure development of the country by allocating its national expenditure up to Rp. 415 trillion or USD 28 billion for infrastructure in 2019. Compared to 2015, the budget in 2019 receives an increase of 61.6%.
Reflecting on those needs and potential for cooperation, Indonesia believes that this will be the right momentum to bolster the collaboration in infrastructure development between Indonesia and Africa. Indonesia believes that the infrastructure sector will not only boost mobility of goods and services trade, but also encourage investments and support wide economic growth in the middle and long term. The importance of this sector can be reflected through the significant development of African infrastructure.
In seizing this momentum, Indonesia will organize the “Indonesia-Africa Infrastructure Dialogue” (IAID) on 20-21 August 2019 at the Bali Nusa Dua Convention Center, Nusa Dua, Bali, Indonesia, to ensure collaboration in such sector can be further strengthened and produce mutually beneficial results.
The dialogue shall be attended by 700 participants from Indonesia and all African countries in the two-day event. The Dialogue will highlight progress of cooperation and business deals signed at the IAF, April 2018 and feature the signing of business deals in infrastructure cooperation and other strategic industries between Indonesia and African countries. This dialogue will be a modest beginning for future events of its kind and it is hoped to catalyze and propel further cooperation in these related sectors.
During the two days, panel discussions will convene featuring prominent Indonesian, African and international policy makers as well as business people, covering issues related to infrastructure.
Source: the Ministry of Foreign Affairs of Republic of Indonesia, available at https://iaid.kemlu.go.id/