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Scoping for Indonesian business in the Sahel region: Balancing economic benefits and security concerns

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The President's declaration to enhance economic cooperation with Africa gives new direction to relevant stakeholders in Indonesia to prioritize the collaboration with countries in Africa. The Ministry of Foreign Affairs followed up this direction by organizing the Indonesia Africa Forum (IAF) in 2018 and the Indonesia-Africa Infrastructure Dialogue (IAID) in 2019. The IAF resulted in business deals that amounted to USD 585.6 million, while the IAID resulted in business deals of USD 822 million.

By focusing on the Sahel Region, the paper explores the region's opportunities and some security concerns that need to consider. The region's abundant natural resources and opportunities for investment in infrastructure, for example, provide opportunities to foreign companies, including from Indonesia, to expand their business or to invest in the region. However, the concerns caused by terrorism, conflicts over resources, and political turmoil also become considerations for the business expansion to the Sahel.

Although there are only two Embassies in the Sahel, located in Abuja and Dakar, several Indonesian companies like PT. WIKA, Indofood with its Indomie, Dexamedica, Kimia Farma, Kalbe Farma, PT. Timah have expanded their business in Sahel Region. However, Indonesia experienced a trade deficit with four countries in the region, namely Cameroon, Chad, Mali, and Nigeria. The most significant trade deficit was with Nigeria due to Indonesia's oil importation from this country.

This paper proposes several policy choices to consider, and in conclusion, it puts forward two policy options that could be implemented in the short term. Those policies are 1) the engagement with a national or regional research institution or think tank to better present specific recommendations, and 2) the equipment of skills in economic diplomacy and economic intelligence data for the diplomats before their assignment in Africa. However, in the long run, the involvement and willingness of related stakeholders in Indonesia to put Africa in the spotlight are essential, and it may take some time.

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Ketersediaan

2022-0064

Sesparlu 70-2022

Training Materials Repository

Tersedia

Informasi Detail

Judul Seri

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No. Panggil

Sesparlu 70-2022

Penerbit

Jakarta : Kementerian Luar Negeri., 2022

Deskripsi Fisik

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Bahasa

English

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Klasifikasi

NONE

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text

Tipe Media

computer

Tipe Pembawa

online resource

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Info Detail Spesifik

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Pernyataan Tanggungjawab

UPT Sekolah Staf dan Pimpinan Kementerian Luar Negeri

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