Powering Indonesia-South Africa relations
Luhut Binsar Pandjaitan, Indonesian Minister of Maritime and Investment spoke to CNBC Africa’s Zanele Morrison for this discussion.
Fri, 21 Jul 2023 13:12:49 GMT
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AI Generated Summary
- Joint venture to establish a 5 to 6 gigawatts power plant in South Africa powered by gas sourced from Indonesia's concession in Mozambique
- Exploration of opportunities in copper extraction and downstream industries to enhance the value of raw materials
- Focus on supporting South Africa's Sustainable Development Goals (SDGs) through collaboration in electric vehicle (EV) production
Indonesia and South Africa are embarking on a strategic partnership aimed at bolstering the power supply and infrastructure development in South Africa. Luhut Binsar Pandjaitan, the Indonesian Minister of Maritime and Investment, recently met with President Cyril Ramaphosa and South African ministers to discuss potential solutions to the power crisis in the country. The discussions revolved around importing cattle, soybean, and establishing a joint venture to build a 5 to 6 gigawatts power plant in South Africa that will be powered by gas sourced from Indonesia's concession in Mozambique. Minister Pandjaitan emphasized that this collaboration could significantly enhance South Africa's energy security and economic growth.
The partnership also extends to the mining sector, particularly in exploring opportunities in copper extraction and downstream industries. Indonesia, known for its expertise in smelting copper and extracting gold and silver, aims to replicate its success in South Africa. By leveraging South Africa's rich copper resources, both countries seek to enhance the value of their raw materials and promote economic development. Minister Pandjaitan highlighted that these collaborations signify the beginning of a broader partnership between the two developing nations, focusing on mutual benefits and sustainable growth.
Furthermore, the collaboration paves the way for Indonesia to support South Africa in achieving its Sustainable Development Goals (SDGs), particularly in the automotive sector. Indonesia's robust nickel reserves and clean energy capabilities position it as a key player in electric vehicle (EV) production. With partnerships already in place with prominent car manufacturers like Wuling, BYD, Hyundai, and LG, Indonesia aims to ramp up EV production and potentially export vehicles to South Africa in the near future. Minister Pandjaitan emphasized Indonesia's production capacity and willingness to promote the adoption of EVs in both countries.
In conclusion, the collaboration between Indonesia and South Africa holds immense promise for both countries, with a focus on energy security, infrastructure development, and sustainable economic growth. By pooling their resources and expertise, these two nations are poised to create a mutually beneficial partnership that could have a lasting impact on their economies and the well-being of their people.