Indonesia, India hope for improved trade, investment
Indonesia, India hope for improved trade, investment
The Jakarta Post, Jakarta
Indonesia and India are exploring the possibility of improving
investment and trade relations in the coming years, says Minister
of Trade Mari E. Pangestu.
"We are looking into the possibility of improving investment
and trade relations under the plan to establish the Association
of Southeast Asian Nations (ASEAN)-India Free Trade Area (FTA),"
she said after opening a four-day Indian engineering expo --
Indiatech 2005 -- at the Jakarta Convention Center on Wednesday.
Members of ASEAN have agreed to start implementing a planned
FTA with economic powerhouse India this year.
Under the plan, tariffs on 105 products will be gradually cut
under an early harvest program (EHP) with the prospect of zero
tariffs by 2007. The products involved include unprocessed
agriculture products, chemicals and manufactured products.
Mari, who also oversees the Investment Coordinating Board
(BKPM), said that Indonesia and India had the potential to
increase their bilateral investment and trade as they were highly
complimentary to each other.
India, for example, was strong in engineering and information
technology, while Indonesia was strong in agro-industry, she
said.
In order to promote trade and investment, Indonesia sent a
delegation led by Minister of Foreign Affairs Hassan Wirayuda to
India late last month and would send a group of information
technology experts to the country in May.
According to the BKPM, Indian investment plans approved by the
agency steadily increased from US$5.4 million in 2002 to $7.1
million in 2003 and $66.7 million in 2004.
Meanwhile, two-way trade between the two countries increased
from $1.94 billion in 2002 to $2.4 billion in 2003, and reached
$2.91 billion during the first 11 months of 2004, according to
the trade ministry.
Chairman of the Engineering Export Promotion Council (EEPC) of
India, Rakesh Shah, said India had been a major investor in the
Indonesian manufacturing sector, particularly in synthetic
fibers, textiles, garments, steel and hand tools.
"Overall, Indian investors hold around $1.5 billion in assets in
Indonesia with annual output of between $1 billion and $1.5
billion," he said.
The expo was participated in by 100 engineering companies from
India, mostly small and medium enterprises. The EEPC expects that
the event will showcase technological advancements made by those
companies, particularly in compressed natural gas (CNG) use on
public transportation, which has helped New Delhi becoming
cleaner.
The biennial expo, which is regularly staged by the EECP in
different countries, will be open to the public from 10 a.m. to 8
p.m. (003/004)
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