India-Indonesia bilateral trade set to grow | SupportBiz

Top Story

India-Indonesia bilateral trade set to grow

 
India is Indonesia's fourth-largest trading partner. Bilateral trade between the countries is expected to zoom from USD20 to USD45 billion by 2015, Indonesian ambassador Andi M Ghalib has said. "India is at number four now, after China, the US and Japan. Very soon, it will overtake Japan and even the US. In the next five years, it will be a major trading partner," Ghalib told IANS in Shimla.

"Asean (Association of Southeast Asian Nations) is the heart of India, and Indonesia is the heart of Asia. The two economies will emerge as the largest economic block (in Asia)," the ambassador said.

He said that India could invest in infrastructure, manufacturing and education sectors.

The ambassador, who was visiting Shimla, said that Indonesia needed more airports.

"An Indian company, GVK, is developing an airport. Similarly, India is ahead of us in education. We need educational exchanges with India," he stated.

He said that Indian investment in Indonesia went up from USD11.6 million in 2007 to USD44 million in 2010. "India's investments are mainly in the mining, automotives, machinery, clothing, agriculture and chemical sectors," he stated.

Indonesia's exports to India, at present, stand at USD11 billion, primarily based on natural resources such as coal, crude palm oil, wood, rubber and furniture.

India largely exports refined petroleum products, wheat, rice, sugar and steel to Indonesia.

To boost economic and trade relations, Ghalib said: "We are implementing a new investment law that would contribute towards creating a conducive investment climate for Indian companies."