In an effort to boost economic cooperation between Indonesia and India, the Indonesian Chamber of Commerce and Industry (Kadin), in collaboration with the Indian Embassy in Jakarta, launched on Friday the India Bilateral Committee of Kadin.
Shinta Widjaja Kamdani, Kadin deputy chairwoman for international relations, said the committee would have several roles to play to enhance business and economic cooperation between India and Indonesia and help the two countries reach their trade and investment target.
“We strongly believe there are still sectors with huge potential and that we can optimize further to reach our ambitious trade and investment target of US$50 billion by 2025,” said Shinta in her remarks during the launch event.
To propel cooperation beween the two countries, the committee will have several tasks, including facilitating discussions on business cooperation, business matchmaking, and assisting local and Indian businessplayers who are interested in establishing or expanding businesses in indonesia.
“This committee is also expected to identify more promising sectors in trade that we could maximize to reach our investment and trade traget,” she added.
Currently, Indonesian-Indian business and economic cooperation covers at least six sectors: mining, infrastructure, manufacturing, pharmaceuticals, the digital economy and services. In manufacturing, the two countries have been cooperating in investment and trade in the textile and automotive industries.
Indonesia is the biggest trade partner of India within the ASEAN region, while India is the biggest palm oil importer and one of Indonesia’s main export destinations for coal. Meanwhile, India’s investment in Indonesia has reached $286.6 million, up significantly from $55 million in 2016.
Moreover, according to Central Statistics Agency (BPS) data, Indonesian-Indian trade reached a value of $12.9 billion in 2016, with Indonesian exports of $10.2 billion and Indonesian imports of $2.1 billion. The trade volume has increased by 28.7 percent in 2017, with Indonesian exports of $14.08 billion and imports of $4.05 billion.