Kenya and Indonesia are seeking to strengthen their bilateral ties by exchanging investment projects.
As part of their discussions, the two countries are exploring the creation of a Bilateral Investment Treaty to foster partnerships in sectors like energy, technology, education, and other underutilized strategic areas.
According to Indonesian Ambassador to Kenya, Hery Saripudin, this deepening relationship builds on the 15 Memorandums of Understanding (MoUs) signed during the Indonesian President’s visit to Kenya in August 2023. Saripudin emphasized the need for continued collaboration in areas like energy, technology, and education.
He also noted that these diplomatic efforts go beyond formalities, offering a chance to reflect on past accomplishments and plan for enhanced cooperation.
Kenya has shown interest in furthering collaboration with Indonesia, especially in textiles, apparel, energy, mining, and oil production.
In 2023, bilateral trade between the two nations surpassed $600 million (Sh77.4 billion), with promising growth opportunities in various key sectors. Kenya is also seeking Indonesia’s help in gaining access to the Southeast Asian market through the ASEAN trade bloc and aims to attract global investors to its value-added production chains.
During a seminar marking the 45th anniversary of diplomatic relations, Yayan Mulyana, Head of the Foreign Policy Strategy Agency at Indonesia’s Ministry of Foreign Affairs, mentioned that future economic cooperation would also focus on mining and natural resources. He highlighted the 2nd Indonesia-Africa Forum in September 2024 as a key platform for enhancing Indonesia-Kenya partnerships.
Mulyana emphasized that the 45-year milestone is not merely symbolic but an opportunity to review past achievements and strategize for stronger cooperation in the future.
Data from the Observatory of Economic Complexity (OEC) indicates that Kenya and Indonesia saw significant growth in bilateral trade in 2022. Kenya exported $27.3 million worth of goods to Indonesia, led by cocoa beans, tea, and tanned sheep hides, with exports growing at an annualized rate of 16.6% over the past five years. However, no services were exported.
In contrast, Indonesia exported $486 million worth of goods to Kenya in 2022, with major products being palm oil, uncoated paper, and stearic acid. Indonesia’s exports to Kenya have also seen substantial growth, increasing by 9.43% annually since 2017, though no services were exchanged.
