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Indonesia pledges more investments in Tanzania

Indonesia pledges more investments in Tanzania

AllAfrica | 23rd August 2023

By Damian Gowela

Indonesia has pledged to increase investments in Tanzania, including in management of the Mnazi Bay gas block by its state-owned company.

Indonesia’s President, Joko Widodo made the pledge at a press conference shortly after holding talks with President Samia Suluhu Hassan at the State House in Dar es Salaam.

According to President Widodo, the cooperation in gas is very strategic and will strengthen cooperation between developing countries.

The two leaders discussed several bilateral cooperation areas and signed seven Memorandum of Understandings (MoUs) on defence, energy, agriculture, livestock, fisheries and blue economy, mining and exemption of visas for holders of diplomatic and service passports.

"Indonesia would like to increase investments in Tanzania, including in the management of Mnazi Bay gas block by Indonesia’s state-owned company, and the processing of natural gas into chemical products & fertilisers" he said.

"Furthermore, I propose the establishment of a Bilateral Investment Treaty to guarantee the protection and sustainability of investments by both our countries" he stressed

President Widodo further pointed out other key issues they discussed with his Tanzanian counterpart, including his country’s push for the establishment of a Preferential Trade Agreement to further optimise the bilateral trade potential of both countries, which in 2022 increased by 20.7 percent.

Also in the list, he said Indonesia is committed to play a part in the development of Tanzania’s health resilience.

"Indonesia’s pharmaceutical company will export its maiden products to Tanzania as a form of contribution in fulfilling Tanzania’s pharmaceutical product needs," he said.

He further noted that Indonesia will walk the talk to materialise concrete collaboration with Africa at large.

Indonesia is in the process of finalising the grand design on development for the next five years for Africa. One of them is through the revitalisation of the Farmer’s Agriculture and Rural Training Centre in Morogoro, Tanzania, Widodo said.

"The Global South has 85 per cent of the world population. Hence, the world must listen to the voices and interests of countries of the Global South, including their right to make development leaps" he noted

According to him, the historical root of the relationship between Indonesia and African countries is very strong since the Asia-Africa Summit in 1955 and the Non-Aligned Movement in 1961.

This is President Widodo’s first visit to Tanzania and the continent, and is aimed at boosting relations with countries Indonesia has relations with.

Indonesia and Tanzania established diplomatic relations in 1964. The founding fathers of the two countries, President Soekarno and President Julius Nyerere were both architectures of the Non-Aligned Movement who deliberately initiated and nurtured the cordial relations between the two countries where the ties were further strengthened by visits of head of states from both sides, among others.

The bilateral relationship between the two countries got a new lease as Indonesia opened its diplomatic representative in Dar es Salaam since 1964.

Tanzania’s interests in Indonesia were accredited from its High Commission in Kuala Lumpur, Malaysia, the nearest Tanzanian diplomatic mission to Jakarta.

In the 59 years of cooperation, Tanzania recently opened its embassy in Indonesia as part of its continued efforts to strengthen bilateral cooperation between the two countries.

 source: AllAfrica