Kadin set to boost bilateral trade with India

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) and Assocham, its Indian counterpart, are set to boost bilateral trade and investment ties.

"We will improve our bilateral trade and investment relationship," Kadin chairman Aburizal Bakrie told newsmen after meeting with his Indian counterpart Govind Hari Singhania here yesterday.

Figures show that since 1989, Indonesia's trade with India has resulted in a trade deficit for Indonesia. Indonesia's exports to India during the first ten months of last year, for example, reached US$69.81 while its imports from India reached $270.26 million.

Aburizal was quoted by Antara as saying that Indonesia will promote new export commodities to India, including natural rubber, plywood, alcohol, palm oil, clove and cashew nuts.

"Usually, our exports to India consist of vegetable and animal oils, coal, paper and chemicals," said Aburizal, who is also chairman of the Bakrie Group.

The tycoon said India will also promote new export items to Indonesia, including machine tools and car and bicycle components.

India presently exports cotton, threads and various textile machines to Indonesia.

According to some analysts, the main obstacle for bilateral trade between the two countries is the lack of regular shipping services.

Indonesian businessmen have also criticized the tender procedures in India, which are usually carried out under the "Cost-Insurance-Freight" system rather than Freight-on-Board" system.

Singhania appealed to the Indonesian business community to invest in India.

He said Assocham will assist Indonesian investors, especially those that capitalize in infrastructure projects such as power generators. (04)