Jakarta Globe - 22 October 2025
Indonesia eyes trade deal with BRICS member S. Africa as deficit Persists
By Jayanty Nada Shofa
President Prabowo Subianto told his South African counterpart Cyril Ramaphosa on Wednesday that the two fellow BRICS nations should explore the possibility of striking a bilateral trade agreement as Jakarta attempts to narrow its deficit amidst tariff uncertainties.
Ramaphosa has embarked on a Southeast Asian tour, with Jakarta being the first stop. The visit came at a time as Jakarta tried to fix its bilateral trade imbalance that could stretch into its sixth year. During the news conference, both leaders were on the same page that they needed to boost trade in today’s uncertain era, alluding to the upheavals triggered by the US tariff hikes. The Indonesian leader even pitched a possible preferential trade agreement that grants special market access on an agreed set of goods. Jakarta is also open if South Africa wishes to have a comprehensive economic partnership agreement (CEPA) instead, namely a “higher-level” accord that offers greater tariff eliminations.
“Our trade has increased significantly in the past five years, but of course, we would like to continue and increase trade in a more balanced situation. … We’d like to take steps to perhaps have a preferential trade agreement or CEPA in this period of international economic uncertainties,” Prabowo told reporters during Ramaphosa's state visit.
Ramaphosa did not respond to Prabowo’s idea of a bilateral trade pact during the presser, but said he was happy to see Jakarta now being part of the BRICS family. This is a group of emerging economies that aims to counterbalance Western dominance. Ramaphosa added: “We agreed on the need to increase trade between our two countries as a catalyst for inclusive economic growth.”
South Africa-Indonesia trade slowed to nearly $1.4 billion in January and August 2025. However, data showed that Jakarta managed to significantly slash its deficit from $656 million in the first eight months of 2024 to $41.5 million over the same period this year. Between 2020 and 2024, Indonesia’s trade imbalance was worth hundreds of millions of dollars, except the $1 billion deficit seen in 2022. In mid-August, Trade Minister Budi Santoso revealed to the press that Indonesia was eyeing a bilateral trade agreement with African nations. He added: “South Africa has told us that they were ready.”
Shortly after taking his oath of office in October, Prabowo decided to apply to BRICS -- a trading bloc that includes Brazil, Russia, and China -- although his predecessor Joko “Jokowi” Widodo was initially hesitant in joining the group. Indonesia officially secured full membership in January 2025. BRICS chair and Brazilian President Lula da Silva is expected to make a state visit to Jakarta this week.
