(Insider Stories) - Indonesia and India will launch new initiatives during Prime Minister Manmohan Singh's visit to the Southeast Asian country later this week to deepen the strategic partnership between the two countries.  This is the prime minister's first visit to Indonesial - in the bilateral context and officials say the talks between the two countries would also cover international issues.

 

Singh's two-day trip Oct 10-12 is taking place at a time when the two emerging economies of India and Indonesia are going through a rough patch. Like India, Indonesia has been a whipping boy of the market for its current account deficit and reliance on external capital flows. It is running a hefty trade deficit after years of surplus. 

 

Indian investment in Indonesia currently stood at almost US$10 billion and was mostly in mining, textile and automotive sectors. Government and trade officials say what is weighing in Indonesia's favour are its rich natural resources and abundant young workforce.

 

India is looking at Indonesia as a manufacturing base for consumer goods, a service base for IT and BPO and a base for exporting to other countries.

India is also inviting Indonesian companies to invest in India. An India Business Forum (IBF) has been launched in Jakarta to boost trade and investment between India and Indonesia. The IBF will be a common platform for a cross section of companies and individuals.

 

Both sides are looking at a trade target of $25 billion by 2015. A few years ago, pre-negotiation consultations had begun on a Comprehensive Economic Cooperation Agreement (CECA). Trade Mnister Gita Wirjawan says India and Indonesia are yet to achieve the true potential of their economic partnership. Singh's visit is expected give a push in that direction.