Both countries, have had several exchanges of high-profile visits which culminated in the endorsement of some Memorandum of Understandings (MOUs).  Some of such high-profile visits include those by the host’s former President Abdurrahman Wahid in 2001, reciprocated by former President Olusegun Obasanjo of Nigeria in 2001, 2005 and 2006, respectively. Both countries also witnessed high-level engagements in New York in 2007 between former President Susilo Bambang Yudhoyono of Indonesia and Nigeria’s former President Umar Musa Yar’Adua.

Indonesia followed up with another high-level visit to Nigeria under former President Goodluck Jonathan where President Susilo Bambang Yudhoyono visited Nigeria on February 2nd, 2013 to strengthen bilateral relations. President Yudhoyono also agreed to an MoU between Nigeria and Indonesia to combat drug trafficking. This gesture is yet to be reciprocated by Nigeria. However, Nigeria’s Vice President Prof. Yemi Osinbajo visited Indonesia to attend the Extractive Industry Transparency Initiative Conference in November 2017. There was also an exchange of visits at the Ministerial levels between the two countries.

ECONOMIC RELATIONS

Nigeria is Indonesia’s second-largest trade partner in Africa after South Africa. The volume of trade between Nigeria and Indonesia increased from US$3.18 billion in 2012 to about US$4 billion in 2014.  However, by the end of 2018, the figure was drastically reduced to $1.73 billion due to fall in oil prices, global economic uncertainties and changes in governments of both countries. Indonesia’s foreign exchange reserves stood at US$129.2 billion in December, 2019, while its external debt stood at 391.8 billion US dollars during the same period.

Indonesia’s major exports include products such as palm oil, automotive parts, electronic products, paper boards, soaps, foot wears, detergents, garments and pharmaceuticals to Nigeria, while it imports crude oil from Nigeria through third parties. In 2020, Indonesia exported USD 337 million worth of products to Nigeria of animal vegetable fats and oil, paper and paper board. The total volume of trade with Indonesia is currently USD 2 billion while Nigeria’s trade balance surplus with Indonesia stands at USD 459 million. Indonesia has equally been utilizing the Nigerian market to gain access to other markets in the West African sub-region.

Economic relations between Nigeria and Indonesia have developed over the years, with over fifteen (15) Indonesian companies currently operating in Nigeria;   paramount of which are: Indofood (producer of the popular Indomie noodles), Indorama (major shareholders of Eleme Petrochemical Refinery), Kalbe Farma, (in a joint venture with Orange Drugs Nigeria), Wings Group (producer of So Klin Detergent), PT. Timah, (mining and smelting company), PT. WIKA (energy procurement and construction company), among others.

However, Nigeria does not currently have any known registered companies operating in Indonesia. According to records, over three thousand Nigerians residing in Indonesia engage themselves in some meaningful petty trading and other business activities. They mostly export textiles, footwear, electronics, food and beverages to Nigeria.

In a bid to broaden the spectrum of its economic cooperation with Africa, the country adopted the Indonesia-Africa Infrastructure Dialogue which has expanded Indonesian businesses to about 9 African countries, including Nigeria, worth over USD 2 billion. It is important to note that the Infrastructure Dialogue, in August, 2019, was utilized by a number of the Nigerian public and private sector entities who explored collaborations with some Indonesian companies and state-owned enterprises in different sectors. Areas of focus identified for tangible investments include; mining, agriculture, energy, pharmaceutical, health, tourism, and infrastructural development.

Strategic Partnership

Nigeria and Indonesia have enjoyed strategic collaboration in the area of education for more than a decade.  This collaboration has witnessed several delegations from the National Institute for Policy and Strategic Studies (NIPSS) and has significantly enhanced the bond of friendship between our two countries, including deeper cooperation between NIPSS and Indonesia’s National Resilience Institute (LEMHANNAS).  Since 2017, LEMHANNAS has offered scholarships to candidates from NIPSS and  Mission has received the Participants of the Senior Executive Course 42 of NIPPS on a Study Tour of Indonesia in June, 2020 unfortunately the study tour was postponed due to the pandemic and its attendant consequences on international travels.

Both countries have also partnered in areas of Science and Technology in the area of capacity training collaboration on technology transfer for the development of Nigeria’s economy. This was initiated with the Training Programme organized by the Indonesian government from 2013-2014 for Officers from National Agency for Science and Engineering Infrastructure (NASENI) in Indonesia.

The relationship between NASENI dated back to the establishment of the Agency in 1992 as Nigeria adopted similar activities of PT PINDAD of Indonesia and NASENI had over the years benefitted from Indonesia’s technology know-how. NASENI’s Small Hydro Power (SHP) Turbine was reverse-engineered from the one procured from Indonesia after the initial training of NASENI Engineers by Indonesia on manufacturing of cross-flow Turbine which is currently in use at some of Nigeria’s dams for generation of power, especially at the rural areas.

An agreement was also made for more collaborations on the exchange of ideas and innovation, and technology transfer in various areas of interest for Nigeria such as Aircraft design, spare parts production, maintenance, repairs, mechanized agriculture, and military vessels. In a bid to assist Nigeria to acquire technologies in the area of agriculture, PT. PINDAD Indonesia made a proposal for the establishment of MoU between PT. PINDAD and NASENI in Rural Multipurpose Mechanical Tools Project (AMDESS) to help Nigerian farmers supply semi-finished products from SOEs to NASENI.

Furthermore, in collaboration with the Mission, the Indonesia-Commercial Association (INCA) has held several business meetings geared toward attracting the much-needed Foreign Direct Investments (FDI) into priority areas of the Nigerian economy. INCA is an umbrella Association established for trade missions between Nigeria and Indonesia and aims to encourage B2B business forums and Small Medium Enterprises (SMEs) to collaborate with businesses in Indonesia, which will in turn create opportunity and revenue for both countries.

INCA acts as a liaison to a diverse pool of industries between Nigeria and Indonesia in all the most promising sectors, including agribusinesses, capacity building, energy, finance, health, ICT, infrastructure and security. The association is supported by the Indonesian Mission in Nigeria and has collaborated with Nigerians over the years in embarking on various projects.

It is expected that regular bilateral economic consultations between Nigeria and Indonesia would open greater opportunities for the promotion of trade and investment between both countries, with particular focus on Public Private partnerships and the enhancement of people-people business networking. Mission has been and would continue to provide basic assistance such as consular services and information needed to prospective Indonesian and Nigerian businessmen on the enormous investment prospects in both countries on a regular basis.