Bilateral trade with Indonesia yet to realise its full potential: India

The Dollar Business Bureau

Vice President Mohd. Hamid Ansari with the President of Indonesia, Joko Widodo, in Jakarta, Indonesia

  Describing India and Indonesia “the two largest emerging economies of the world”, Vice President Hamid Ansari said the bilateral trade has not realised its full potential and the two countries should identify new sectors of economic cooperation. Addressing the India-Indonesia Business Forum, in Jakarta on Tuesday, Ansari asked Indonesian companies to invest more in India’s infrastructure and manufacturing sectors “particularly in downstream manufacturing sectors like coal, palm oil and rubber which are exported to India in large volumes”. “Infrastructure development and energy security are key areas for cooperation for emerging economies like India and Indonesia,” he said. The event was attended by the Vice President of Indonesia, Jusuf Kalla, and a large number of business representatives from India and Indonesia. Ansari also said that India’s 'Act East Policy' is aimed at rapidly scaling up economic cooperation with ASEAN member countries. Calling for expansion of business between India and Indonesia, he said “the bilateral trade and investments have not realized its full potential”. India imports crude palm oil, coal, minerals, rubber, pulp and hydrocarbon from Indonesia. Major exports from India to Indonesia include refined petroleum products, maize, commercial vehicles, telecommunication equipment and oil seeds. “There is a need to balance our bilateral trade as India's import from Indonesia was $15 billion against an export of $4 billion in 2014-15,” he said. “…we need to synergize our efforts in the areas of economy and business. The vast consumer market, youthful and skilled human resources and expertise in the field of information technology of India coupled with Indonesia's natural resources, youthful population and strategic location would provide a platform for enhanced economic engagement.” In order to broaden the economy, Ansari suggested the two countries to harness the complementarities in attracting investments. “There is a considerable potential for expanding trade in the areas of automotive components, automobiles, engineering products, IT, pharmaceuticals, bio-technology and healthcare sectors,” he said. Praising a series of economic reforms taken up by the Indonesian government, the Vice President said that these measures will create further opportunities for business collaborations between the two countries. He also offered investment opportunities in food processing and agriculture related small and medium enterprises. Besides, India’s expertise in production of pharmaceuticals, especially generic medicines at affordable cost, advancement in healthcare sectors and science & technology could also be potential areas of investments, he added.  

November 04, 2015 | 3:29pm IST.