India Indonesia To Achieve $25 Bln. Trade Target By 2015
2012-03-07 16:16:12
The Minister for Commerce Industry and Textiles Anand Sharma said the trade between India and Indonesia would reach the target of $25 billion by 2015, ahead of schedule.
Sharma, who reviewed the business ties between the two countries with his counterparts in Jakarta, said, "We now see ourselves achieving the next target of $25 billion by 2015 comfortably. With the implementation of India-ASEAN FTA by us since October last year, the trade and investment flows between our countries would accelerate and would help achieve and exceed the target easily."
Both sides have agreed to speed up negotiations on bilateral Comprehensive Economic Cooperation Agreement (CECA).
He emphasized the need for Indonesia to improve its offer on services in the context of the Indian ASEAN FTA in services and investment.
He also pushed for movement of professional under mode IV both in context of India-ASEAN FTA as well as further investment opportunities in future.
Opening up the two economies for service trade would be a win-win situation for both the countries" observed Sharma. Presently, Indonesia does not allow movement of professionals in health and banking sector.
In response, Indonesia Minister for Trade Gita Wirjawan agreed to take up these issues with the Health department and the Central Bank of Indonesia.
Sharma also flagged important issues relating to the non-tariff barriers for Indian pharmaceutical sector and the import of bovine meat into Indonesia.
He also raised the issue of new mining laws and certain new regulations that have affected Indian mining and IPPs in Indonesia.
Indian mining companies are obliged to export coal at bench-marked prices announced monthly by the Ministry of Industry in Jakarta. This has upset the calculations of a large number of IPPs who had submitted bids in India for power projects assuming certain (lower than benchmark) pricing of coal on the basis of coal mines operated by them in Indonesia. The Indonesia Trade Minister responded favorably for the review of the policy.
To strengthen the economic cooperation, both side decided to institute five new working groups in the fields of health care, pharmaceuticals and bio-technology, mining, agro-processing and food processing, development and technology and skill training
Sharma also inaugurated India show in Jakarta, in which 72 companies representing large corporate to SMEs in India ranging from agro-processing, manufacturing and mining to other sectors were participating.
Bilateral trade between India and Indonesia has been $20.136 billion in 2011, while it was $14.128 billion in 2010. India-Indonesia bilateral trade has grown at a robust compounded annual growth rate of around 30 percent over the last 5 years.