Tanzania and Indonesia Strengthen Economic Cooperation with Bilateral Agreements

The President of Indonesia Joko Widodo just concluded his visit to Tanzania which lasted from August 21 to August 22, 2023 and culminated in the signing of several pivotal Memoranda of Understanding (MoUs) with the government of Tanzania.

On the final day of the visit today, President Widodo and his host Tanzanian President Samia Suluhu Hassan attended the signing of seven MoUs spanning defense, energy, agriculture, livestock, fisheries, minerals, and tourism.

Key Agreements and Collaborative Areas

Joint Permanent Commission (JPC): Both nations have agreed to establish a Joint Permanent Commission to facilitate ongoing communication and cooperation across various sectors.

Visa Waivers for Diplomatic Passports: A visa waiver program for holders of Diplomatic Passports from both countries aims to streamline travel and facilitate diplomatic engagements.

Health Services: Plans for the establishment of a pharmaceutical and medical equipment manufacturing facility in Tanzania were discussed, underscoring Indonesia’s commitment to supporting Tanzania’s healthcare infrastructure.

Energy, Oil, and Gas: Collaborative efforts in the energy sector aim to tap into Indonesia’s expertise, potentially benefiting Tanzania’s energy infrastructure.

Minerals and Blue Economy: Cooperation in mineral resource management and the blue economy sector will contribute to sustainable resource utilization and economic growth.

Modernizing Agriculture: Indonesia has pledged to enhance Tanzania’s Farmers’ Training Center (FARTC) in Mkindo, Morogoro, to empower local farmers with modern agricultural practices.

President Samia Suluhu Hassan emphasized the historical significance of the Tanzania-Indonesia relationship, stating, “Tanzania and Indonesia share a longstanding and historical relationship. This relationship was established by our Founding Father, Mwalimu Julius Kambarage Nyerere, and the first President of Indonesia, the Honorable Soekarno.”

For his part, President Joko Widodo affirmed Indonesia’s dedication to the partnership: “Indonesia will continue to collaborate with Tanzania across various sectors, especially in healthcare. We intend to establish a pharmaceutical and medical equipment manufacturing facility in Tanzania for the benefit of both nations.”

Tanzania and Indonesia Trade

According to Tanzania’s Ministry of Finance, the total trade value between Tanzania and Indonesia in 2021 was USD 490.2 million. Indonesia was Tanzania’s 4th largest trading partner that year.

Tanzania exported USD 55.7 million worth of goods to Indonesia in 2021, mostly tobacco, spices, textiles, and timber.

Tanzania’s imports from Indonesia in 2021 totaled USD434.5 million, including palm oil, medications, paper and rubber products.