India – Indonesia bilateral trade targeted to reach US $45 billion by 2015

The Consulate General of the Republic of Indonesia, Mumbai and The Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) organized an Investment Promotion Forum on Regional Potential Investment Opportunities in Indonesia on August 20, 2013 at Federation House, Red Hills, Hyderabad. Mr. Hariyanta Soetarto, Consul & Head of Chancery, Consulate General of the Republic of Indonesia was the chief guest for this occasion.

Mr. Hariyanta Soetarto said that the Indonesia and India enjoy better bilateral trade relations. Implementation of ASEAN-India Free Trade Agreement (AIFTA) has contributed to increase the trade relations between the two nations. The bilateral trade between Indonesia and India has reached to US $16.80 billion in the year 2012 which has resulted to set a target of US $45 billion for the year 2015. This is a tremendous achievement if we compare the figure of the year 2004 when the bilateral trade figures reached only up to US $4.5 billion.

To expedite the process of sustainable economic growth, the Indonesian Government in recent has developed and implemented Master-plan for the Acceleration and Expansion of Indonesia Economic Development and to transform Indonesia into one of the 10 major economies in the world by 2025 with 22 promising sectors been identified to boost economic development throughout the nation. The identified sectors are such as Shipping, Textiles, Food and beverages, Steel, Defence equipment, Palm oil, Rubber, Cocoa, Animal husbandry, Timber, Oil and gas, Coal, Nickel, Copper, Bauxite, Fisheries, Tourism, Food and agriculture, The Jabodetabek Area, The Sunda Straits Strategic Area, Transportation Equipment and Information and communication technology (ICT) etc. Foreign Investors are welcome to choose their desired sectors and preferred regions according to their business interest.

It contemplates a high degree of cooperation between the central government, local governments of Sumatra, Java, Kalimantan, Sulawesi, Bali – Nusa Tenggara, Papua – Maluku Islands owned enterprises, and the private sector. The Government will act as a regulator, a facilitator and a catalyst to support economic growth and will provide fiscal and non-fiscal incentives. The private sector will be given a major role in economic development, particularly in the area of infrastructure Mr. Hariyanta Soetarto said.

I also avail this opportunity to invite you all to the forthcoming major investment event titled “Jakarta Investment Expo 2013”  also called as JAKVEST 2013 will be held at Tangerang, Indonesia for the period from October 21-23, 2013.  To attract investors, particularly those from overseas the Association of Provincial Investment Agency (AIPMP) with support of the Indonesian Provincial Investment Agencies will be organizing this major event. The forum Jakvest is expected to provide prospective investors with information about the city's investment potentials. The event will feature Investment & Business Forum, Investment Exhibition of Potential and Excellent Products Province and Region, Forum Dialogue among Regional Investment Agencies, One on One Business Meeting and site visit. So please do not miss the opportunity but make sure that you all will definitely visit the Jakarta Investment Expo 2013 “Your Gateway for the Next Stop Investment”.

Mr. Srinivas Ayyadevara said in his welcome address is that the India and Indonesia are increasingly seen as emerging Asian economies, and have undergone massive economic reforms in the past two decades. Strong economic fundamentals with a robust financial sector and manufacturing industry have positioned them among the top five investment destinations in Asia.

The bilateral trade between India and Indonesia is expected to grow to $ 45 billion by 2015 from $ 20 billion.  The availability of huge natural resources, including thermal coal has attracted several Indian power companies.  Coal accounts for over half of India’s total energy generation. More than 50 per cent of India’s domestic coal production is utilized for power generation while three-quarters of India’s electricity is generated from more than 80 coal-fired thermal plants.  The close proximity of Indonesia to India compared to other source countries gives it a freight advantage and we can look for mining rights and even joint ventures with the Indonesian counterparts for securing long term supplies of coal.

India is the largest buyer of crude palm oil from Indonesia.  At present, India exports refined petroleum products, wheat, rice, sugar and steel to Indonesia. India’s imports stood at $ 11 billion, primarily based on natural resources such as coal, crude palm oil, wood, rubber and furniture.  There are more than 100,000 Indonesians of Indian origin in Indonesia and around 9,000 Indian nationals living in Indonesia.

Mr. V. Anil Reddy, Vice President, FAPCCI, Mr. Abdul Hanan, Head of Sub Directorate Sumatera and Kalimantan Regions, Directorate of Regional Promotions, Indonesia Investment Coordinating Board, Drs. Danang W. Jati, Head of Indonesian Investment Coordinating Board, Mr. Diddy Rusdiansyah, Head of Licensing and Investment Coordination Board of East Kalimantan Province and Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, FAPCCI, Mrs. Vydehi P, Secretary (I/c), FAPCCI also spoke at the session.