Kenya and Indonesia are looking to enhance their Bilateral relations through an exchange of investment projects.
In the engagements the two nations, are among others looking to form a Bilateral Investment Treaty that will open up partnerships on areas of energy, technology, education and other strategic sectors that have not been explored.
Indonesian Ambassador to Kenya, Hery Saripudin, said the strengthening of bilateral relations between Indonesia and Kenya, builds on the 15 Memorandums of Understanding (MoUs) signed during the Indonesian President’s visit to Kenya in August 2023.
"Stronger collaboration and broader partnerships need to continue in the coming years, such as in the energy, technology, education and other strategic sectors that have not been explored (untapped)", said Ambassador Saripudin.
He added that the steps in diplomatic relations is not just a ceremonial marker, but an opportunity to reflect on past achievements and strategise for enhanced collaboration moving forward.
Kenya has expressed interest in furthering cooperation with Indonesia, particularly in the textiles, apparel, energy, mining, and oil production sectors.
Bilateral trade between the two countries reached over $600 million (Sh77.4 billion) in 2023, with high-growth opportunities identified in key industries.
Kenya is also seeking Indonesia's support in penetrating the Southeast Asian market through the ASEAN trade bloc, and aims to attract global investors to its value-added production chains.
Speaking during a seminar to commemorate the 45-year anniversary, Head of the Foreign Policy Strategy Agency at Indonesia's Ministry of Foreign Affairs, Yayan Mulyana, said other economic areas of focus will include mining and natural resources.
He also pointed to the upcoming 2nd Indonesia-Africa Forum in September 2024 as a platform to deepen partnerships between Indonesia and Kenya.
"The celebration of 45 years of diplomatic relations between Indonesia and Kenya is not merely ceremonial, but more substantive to look back at the achievements of the two countries, and focus on identifying the efforts needed to improve stronger cooperation and collaboration between Indonesia and Kenya in the future,” he said.
According to the world's leading data visualization tool for international trade, Observatory of Economic Complexity (OEC), Kenya and Indonesia saw notable increases in bilateral trade in 2022.
In 2022, Kenya exported $27.3 million worth of goods to Indonesia, led by cocoa beans ($17 million), tea ($6.93 million), and tanned sheep hides ($2.03 million).
Over the past five years, Kenya’s exports to Indonesia have grown at an annualized rate of 16.6%, up from $12.6 million in 2017. However, Kenya did not export any services to Indonesia during this period.
Meanwhile, Indonesia’s exports to Kenya totalled $486 million in 2022, with key products including palm oil ($291 million), uncoated paper ($43.8 million), and stearic acid ($29.8 million).
Indonesia’s exports to Kenya have also experienced significant growth, increasing by 9.43% annually from $310 million in 2017. Similar to Kenya, Indonesia did not export any services to Kenya in 2022.