Indonesia, Senegal chambers sign pact to boost trade, investment
Indonesia's chamber of commerce, Kadin Indonesia, has signed a partnership agreement with Senegal's National Union of Chambers of Commerce, Industry and Agriculture to strengthen bilateral investment and trade ties, building on bilateral trade that exceeded US$220 million in 2025.
Mintardjo Halim, head of Kadin's Africa Committee, said the agreement, signed at Kadin Tower in Jakarta on Friday evening, renews and expands an existing framework between the two business groups. The enhanced pact covers investment, bilateral trade, shipping and logistics, and banking.
Bilateral trade between the two nations exceeded US$220 million last year, driven by growing demand for Indonesian agricultural products including palm oil, garments and machinery. The agreement comes as Indonesia deepens its engagement with Africa, with total imports from the continent reaching US$10.4 billion in August 2025-July 2026, representing a 14.17% increase compared to the previous twelve-month period.
If we make investments there, we have legal protection. If any operational issues or disputes arise, we can directly coordinate with UNCCIAS to help resolve them.
Untapped Potential and Trade Barriers
Halim said Indonesia and West African nations have vast untapped potential for cooperation in agriculture, food processing, manufacturing, fast-moving consumer goods and logistics. However, he said the lack of bilateral trade agreements is a major hurdle, as goods traded without preferential terms risk losing competitiveness because of steep import duties and non-tariff barriers.
He urged the Indonesian government to speed up negotiations on trade pacts with African nations, whether Preferential Trade Agreements or Free Trade Agreements, warning trade would otherwise struggle to grow.
Senegal as Strategic Gateway
The partnership positions Senegal as a strategic gateway for Indonesian businesses seeking access to broader African markets. Senegal, with a GDP of US$40.47 billion in 2026 and a growth rate of 2.2% according to the International Monetary Fund, maintains an open trade policy with foreign trade accounting for 71% of its GDP. As a member of the Economic Community of West African States, Senegal has existing trade agreements with the EU, United States, Switzerland, South Korea, Japan and Australia.
Crucially, Senegal provides access to the African Continental Free Trade Area, a market of more than 1.4 billion people, for countries with diplomatic and trade relations through Senegal.
Indonesian Investment and Manufacturing Plans
Alex Rudini Sulaiman, economic affairs coordinator at the Indonesian Embassy in Dakar, urged Indonesian entrepreneurs to invest directly in manufacturing in West Africa, particularly in Senegal, noting immense potential for establishing local manufacturing that would help significantly reduce production costs.
He said several Indonesian companies are keen to enter the Senegalese market, including agro-food firm PT Charoen Pokphand Indonesia Tbk, which is conducting a feasibility study. The company is Indonesia's largest producer of poultry feed, day old chicks and processed chickens, with a dominating market share of about 35% in both the country's day old chicks business and poultry feed industry.
Other Indonesian conglomerates have already entered the wider region. PT Bakrie & Brothers Tbk has invested in oil palm plantations in Guinea and plans to expand into mining.
Sulaiman said the forum serves as a stepping stone that opens the door to broader economic cooperation between Indonesia and Africa. Indonesia's total merchandise exports reached US$282.5 billion in 2025, representing a 5.99% increase over 2024, according to BPS-Statistics Indonesia, demonstrating the country's expanding trade capacity.
The agreement was signed by Abdoulaye Sow, who serves as president of both the Dakar Chamber of Commerce, Industry and Agriculture and the National Union of Chambers of Commerce, Industry and Agriculture of Senegal, alongside Kadin Indonesia representatives at the Indonesia-West Africa Business Meeting and B2B Networking event in South Tangerang, Banten.
