2nd Indonesia-Africa Forum Generates $3.5B of Deals
The 2nd Indonesia-Africa Forum (#IAF2024) took place in the resort island of Bali started on 1 September and concluded on 3 September 2024. Despite not being able t attract a large number of African heads of states or governments, Indonesia nevertheless managed to have about USD 3.5 billion worth of deals sealed.
In all, 29 African states sent delegations to #IAF2024, compared to 47 countries at the inaugural session in 2018. It is worth noting that China is holding its 9th FOCAC Summit in Beijing from 4 to 6 September 2024, causing some African leaders to skip Bali for Beijing.
Last time, the Indonesia-Africa Forum (IAF) was held was back in 2018 and the total size of deals then was a modest USD 600 million. In his welcome address, Indonesian Joko Widodo underscored that the IAF has contributed to expand the economic partnership between Indonesia and Africa.
Indonesia also views Africa as an emerging and promising market and instituted the IAF in order to diversify from traditional partners such as China, USA and Japan. The need to diversify became more acute as the Chinese economy is slowing, the Japanese economy is anemic while the USA faces some degree of uncertainty with the upcoming Presidential election.
Among the flagship deals signed, we may highlight the following:
- Geothermal power project in Tanzania
- Pharmaceutical project in Ghana
Other deals included the sale of small aircrafts made in Indonesia and some Indonesian oil companies also brokered some partnerships. Although business was the main topic, geopolitics made its way into the discussions.
“Jakarta can boast history and legacy of relationship that stretches back to the Bandung Conference. Indonesia has really sought to leverage on that historical relationship.”
Canregie Endowment for International Peace Senior Fellow Elina Noor
President Widodo is also seeking to enhance the standing of Indonesia on the global stage and to be one of the spokespersons for the #GlobalSouth. The US-China Rivalry does not look to be going away soon and Africa presents itself as a ‘promising partner.’