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Indonesia eyes PTA deals with S. Africa

(Xinhua) Updated: 2012-10-17 16:06

JAKARTA - The Indonesian government seeks the possibility to seal a preferential trade agreement (PTA) with South Africa, one of the fastest-growing markets on the African continent, as an effort to diversify exports, media quoting a minister's remarks as reporting on Wednesday.

Indonesia planned to conduct a preliminary study to assess complementarity between both countries, with the aim of determining the areas that would gain significant benefit from the arrangement, Trade Minister Gita Wirjawan said.

"We have to clearly identify what we can offer each other and find out what is hampering trade on these products, then determine our moves. This is the necessary process to prepare for a PTA," he was quoted by the Jakarta Post as saying.

The Southeast Asia's largest economy, Indonesia, has kicked off in recent years to diversify its exports to non-traditional markets, including South Africa, which is a member of the fast-track group of countries, BRICS, Brazil, Russia, India and China being the other members.

The move aims at boosting exports amid the weakening global demand on Indonesia's products from the traditional export markets.

Bilateral trade between Indonesia and South Africa expanded by 78.93 percent in 2011 to $2.14 billion from a year earlier. Indonesia's exports rose by 111 percent last year to $1.43 billion during the designated period, while imports surged by 36.62 percent to $705 million.

The Trade Ministry's international trade cooperation director general, Iman Pambagyo, said the PTA was needed to gain wider market access for local goods as, at present, local manufacturers were struggling with South Africa's high import tariffs of more than 10 percent.

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