RI, India begin 'new chapter' in relationship
RI, India begin 'new chapter' in relationship
Rendi A. Witular
The Jakarta Post/New Delhi
Indonesia is keen for closer ties with India and the two
countries' leaders sealed several key business and defense
agreements during President Susilo Bambang Yudhoyono's three-day
visit.
"It is my honor to visit India. I hope my visit will help
improve the relationship between the two countries, (turning the
page) to a new chapter," he said after attending a state welcome.
To mark the new phase, Susilo and Indian Prime Minister
Manmohan Singh made a joint statement, detailing a strategic
partnership that covered cooperation in the defense, business and
technology sectors.
Other signed deals include memorandums of understanding (MOUs)
on marine and fisheries cooperation and on the establishment of a
joint study group to examine the feasibility of a comprehensive
economic cooperation agreement.
Another covers cooperation in education and training between
the Indonesian Ministry of Foreign Affairs and the Indian
Ministry of External Affairs.
Susilo met with Indian Minister of Defense Pranab Mukherjee to
talk specifically about cooperating in the defense sector, with a
further follow-up to be arranged by officials at the ministerial
level.
Private sector representatives from the two countries also
agreed to increase cooperation.
The Indonesian Chamber of Commerce and Industry (Kadin) and
the Federation of Indian Chambers of Commerce and Industry
(FICCI) signed an MOU to enhance direct and effective relations
between them.
According to the FICCI, two-way trade between Indonesia and
India stood at US$3.8 billion last year and figures for 2010 were
projected to reach $10 billion. Indian investment in Indonesia is
valued at $1.5 billion with annual revenue reaching between $1
billion and $1.5 billion annually.
"These figures are certainly not enough. Indian companies will
surely need to expand their business in Indonesia in natural
resources, engineering, horticulture, information technology and
the pharmaceutical sector," FICCI chairman Onkar S. Kanwar said.
Based on a report by U.S. investment firm Goldman Sachs, India
is projected by 2025 to become the world's fourth-largest economy
after the United States, China and Japan, overtaking Germany,
Britain and France. By 2035, it could overtake Japan.
Speaking before a group of Indian businesspeople, President
Susilo said a century of close relations would help the business
communities of the two countries deliver mutual advantages.
"I think it is a time now for the Indian businessman to invest
in Indonesia. We are changing and there is so much that you can
expect from us." The government was in the process of reforming
its economic policies, he said.
Susilo said among the reforms were amendments to the country's
tax, labor and investment laws, which were all needed to attract
more investment and create a more conducive business climate.
Indian Minister of Trade and Industry Kamal Nath, meanwhile,
said there had been wide-ranging change in Indonesia recently,
with Indian businesspeople now keen to expand there.
"There is a significant change in the business atmosphere in
Indonesia and there is great hope for the country. India-
Indonesia cooperation will not only advantage the region but also
the world in general," he said.