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.