Wed, 12 Jan 2011

Jakarta (ANTARA News) - Trade between Indonesia and India in 2011 is expected to be as successsful as last year and reach the value three times that in 2005, according to Indian Ambassador to Indonesia Biren Nanda.

"We expect to repeat last year`s success which was three times as high as in 2005," Biren said in an interview with ANTARA here Tuesday.

Indonesia-India trade in 2010 reached a value of 12 billion US dollars after dropping to 9.6 billion US dollars in 2009 due to the global economic crisis, he said.

In 2005, Indonesia`s exports to India reached 2.9 billion US dollars and last August they increased by about 64.7 percent.

Trade between the two countries was increasing day by day, especially after the visit of Indonesian Trade Minister Mari Elka Pangestu to India last December.

"I hope also our partnership will be further strengthened by President Yudhoyono when he makes a working visit to India on January 24. He will among other things attend the Republic Day in India on January 26," Biren said.

President Susilo Bambang Yudhoyono will visit India, Indonesia`s fastest growing export destination after China, to observe Republic Day on January 26.

He will conduct a state visit to India, upon the invitation of the government of India to become a prime guest at the Republic Day on January 26.

President Yudhoyono is also scheduled to witness the signing of a number of cooperation agreements including on extradition and in the fields of science, economy and trade.

India commemorates Republic Day on every January 26 to mark the implementation of the Indian Constitution to replace the Indian government law of 1935 as a document that governed India as of January 26 of 1950.

It has chosen January 26 in respect of the declaration of independence of 1930. That is one of the three national holidays of India. The Republic Day is marked with a parade in Rajpath, New Delhi, attended by the president of India.

Many Indian businessmen were interested to join investment in Indonesia, and the industries which deal with power generators and aluminum, he said. Besides, the existence of ASEAN - India Free Trade Agreement (AIFTA) also contributed such partnership to be increased, Biren added.

However, the opportunity for Indonesian businessmen to join Indian market was difficult due to the high tariff applied by the government, he said.

"There is a lot of investment coming to Indonesia from India since 1970. Nevertheless, Indonesian entrepreneurs are difficult to enter Indian market which is very competitive because the high tariff and regulations applied in India," the Ambassador said.

Indonesia`s key exports to India included vegetable oil, crude palm oil, coal, copper ore, cashew nut, newsprint, chemicals and natural rubber. While India exports nylon thread, organic chemicals, iron and steel products, synthetic fiber and cotton to Indonesia.

Due to the number of population which reached more than a billion people, economic condition in India grew fast reaching eight percent in 2010 and ranked the fourth largest in the world based on purchasing power parity, Biren added. (*)