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.