Kadin set to boost bilateral trade with India

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)