Jakarta (Indonesia Window) – The economic conditions of South Africa and the surrounding countries in the diplomatic jurisdiction of the Indonesian Embassy in Pretoria have affected the Indonesia government’s strategy in expanding potential markets for its products.
The low spending of the household sector in 2019 shows that South African consumers are still financially weak, according to a statement quoted by Indonesia Window from the Indonesian Foreign Ministry’s website here on Friday.
In addition to the slowing economic growth to around 0.7 percent in 2019, South Africa faces unemployment of 29.1 percent which places it as the country with the highest unemployment rate in the world.
However, South Africa is still considered as Indonesia’s potential economic partner.
Indonesian Ambassador to South Africa Salman Al Farisi believes the investment-led model can be one of the mechanisms of cooperation between the two countries.
Indonesian entrepreneurs should consider the investing in African countries would increase exports, he said.
According to Ambassador Salman, Helping the local economy through opening new jobs, would local people’s increase awareness, demand and purchasing power for Indonesian products.
This can be done among others by exporting semi-finished products from Indonesia, while the final process of making products can be done through partnerships with local parties.
Reporting by Indonesia Window