India-RI trade ties poised to take off
India-RI trade ties poised to take off
The 20th century's last decade has ushered in a new era in India's trade relations with ASEAN countries, particularly Indonesia. India's "Look East" policy and liberalization of the Indian economy, beginning from 1991, provided the much needed impetus for expansion of trade and economic ties between India and Indonesia.
Total trade between the two countries has more than doubled during the period from 1991 to 1995. There is a new desire to expand trade and investment levels because the present estimated level of US$900 million, although representing an encouraging increase over 1994's $596 million and 1993's $435 million, is far below the maximum potential.
The beginning of 1995 witnessed a meeting, in Jakarta, between senior officials of both countries. The meeting underlined the urgency to promote bilateral trade and initiated certain concrete measures in this direction. The Indian Electronics and Computer Software Export Promotion Council and Indonesian Computer Software Association signed a Memorandum of Understanding to promote cooperation in computer software and education.
The Indian Trade Promotion Organization is organizing an omnibus event in the form of an exclusive Indian Trade Exhibition in Jakarta from March 19 to March 23, which will provide a new window for achievements in Indian industry and technology.
Leading Indian manufacturers and exporters will participate in the exhibition with a wide range of products, including computers and software, textile machinery, mechanical appliances, electrical machinery, and automobile parts.
The exhibition will seek to identify ways and means for expansion and diversification of trade between the two countries. This is a unique opportunity to explore the possibilities of investment, technology transfer and joint ventures in Indonesia.
Indian joint ventures in Indonesia number 16, with an investment value of $217 million, and have for a long time made their presence felt in the fields of textiles, garments, steel and rubber. The expanding industrial base of Indonesia is attracting a number of Indian companies to participate in various new projects, such as power transmission, telecommunications, machine tools and construction.
Bank Indonesia International has applied to open a branch in Bombay. State Bank of India, the largest bank in India, also has proposed to establish a joint-venture bank in Jakarta.
India is an attractive investment opportunity, offering security, impressive returns and tremendous market potential. India offers good business and financial infrastructure and contains a huge pool of managerial and technological talent conversant with the English language and international business skills.
The success of a host of foreign investors in India in last three years has resulted in a flurry of investment activity. Leading Indonesian business firms have started looking at the Indian market to set up joint ventures. PT Sinar Mas is setting up a paper factory in India at a cost of $250 million.
With the beginning already in motion, the future offers great potential for India and Indonesia.