RI-India trade expected to reach US$4b by 2000
RI-India trade expected to reach US$4b by 2000
JAKARTA (JP): Indonesia and India aim to quadruple their two-
way trade to US$4 billion per annum by the end of this century,
from a current level of less than $1 billion.
Indian Ambassador to Indonesia S.T. Devare told a business
luncheon attended by Indian and Indonesia-based Indian
businessmen that the trade target has been initiated by
Coordinating Minister for Production and Distribution Hartarto.
"During a meeting with Indian businessmen ... Mr. Hartarto set
the target for bilateral trade at $4 billion by the end of the
century," Devare said.
"This opens up unlimited possibilities, because trade and
economic volume between the two is now far from satisfactory,
considering the great potential and opportunities of both
countries," he added.
The luncheon was organized by the Economic Association of
Indonesia and India, together with a 20-member delegation of
Indian businessmen from the IndusInd Group.
Devare noted that India's deregulatory policies and economic
reforms in the last four or five years will act as an incentive
for Indonesian businessmen to invest in that country.
India expects to gain $10 billion in foreign investments this
year, he said.
The Indian delegation, headed by Srichand P. Hinduja of the
London-based Hinduja Group, is on a two-week tour of Southeast
Asia, and will be leaving for Singapore later this week.
Hinduja said yesterday that India was currently exploring
Indonesia's market and business prospects, which were still
considered vast in comparison to those of Singapore and Malaysia.
"Singapore and Malaysia are already saturated," he told
reporters.
The Hinduja Group has clinched a deal with PT Multi Eka Karma,
making the latter its strategic partner in developing investment
projects in Indonesia.
Under the agreement, Multi Eka Karma-- the investment holding
company of the General Sudirman Foundation of the Armed Forces--
will act as the catalyst for Hinduja to facilitate its
investments in Indonesia's resources. Meanwhile, Hinduja will
serve as the catalyst for Multi Eka to gain an international
competitive edge.
According to the Central Bureau of Statistics, Indonesia and
India currently have a trade balance of more than $850 million,
with a deficit of about $100 million on the Indonesia side.
Indonesia's exports to India dropped by 5 percent to $39.15
million last December, from $41.19 million in the same month
during 1994. Its imports from that country soared by 104.3
percent to $71.33 million, from $34.92 million.
For the January-December period of 1995, Indonesia's exports
to India rose by 37.2 percent to $381.03 million, from $277.75
million in 1994. Its imports from that country increased by 50
percent to $478.81 million, from $318.27 million. (pwn)