JAKARTA (TheInsiderStories) – Indonesia and Indian businessmen will focus on four sectors in their business partnership, said chairman of Indonesia Chamber of Commerce Rosan P. Roeslani after a CEO Forum in Jakarta, May 29. The two parties has agreed to focus in manufacture, mining, pharmaceutical and infrastructure.
In the mining sector, India is the main export’s destination for Indonesian coal. With their growing domestic need, the portion of Indonesia coal export can be increased and at the same time India ‘s businessmen are not reluctant to invest in this sector here.
Indonesia is the second biggest exporter of coal to India after Australia with the high growth. In 2016, India’s coal import from Indonesia including briquettes, ovoid, and solid fuel from coal ) worth US$3.3 billion. The import increased in 2017 worth $4.7 billion based on International Trade Center 2018 data.
In the pharmaceutical industry, Indonesian businessmen should invest in India to answer the high import tariff issue. Indonesia’s pharmaceutical products are imposed high tariff around 40 percent, that makes the price of our drugs are quite competitive there.
Beside, issue a recommendation focused business to Prime Minister Narendra Modi and President Joko Widodo, Indonesia Chamber of Commerce and Confederation of Indian Industry also singed Memorandum of Understanding to accelerate the relationship between the two countries.
At the signing ceremony, both associations will share information on economic affairs, trade and also support the ease of doing business for the businessmen of the two countries.
“With the total target of trade and investment around $50 billion in 2025, we have to optimize our existing cooperation,” said Shinta Kamdani, a deputy chairman of Indonesia Chamber of Commerce for International Relationship.
Indonesia is the biggest trading partner for India in ASEAN, and a destination for Indonesia palm oil and coal export. India ‘s investment has increased significantly in Indonesia, from $55 million in 2016 to $286.6 million in 2017.
Based on the Indonesia Statistics data, in 2017 Indonesia – India trade balance increased around 28.7 percent worth $14.08 billion compared to previous year $12.9 billion with total export worth $10.2 billion and total import $4.05 billion from 2016 worth of $2.1 billions.
Indonesia -India trade balance from January to March decreased around 3.06 percent from $4.46 billion in 2017 to $4.33 billion in 2018.
The close cooperation between the two countries will encourage strong strategic partnership so it can reach the target of 50:50 in 2025.