RI Targets India Investment Through These Three Sectors

INDUSTRY.co.id - Jakarta, Indonesia and India are continuously working to enhance comprehensive economic cooperation, especially through increased investment in the industrial sector. Moreover, the bilateral relationship that has been running for more than 60 years is getting stronger through strategic partnerships.

"India is an important partner for Indonesia, President Jokowi has visited India in 2016. Both countries also share a common vision to build a global competitive industry," said Airlangga Hartarto Minister of Industry at the 69th Indian Republic Day Celebration in Jakarta , Wednesday (31/1/2018) night.

To follow up on President Jokowi's working visit, Airlangga revealed that he and Indonesian Trade Minister Enggartiasto Lukita held an audience with the Minister of Industry and Trade of India, Nirmala Sitharaman in December 2016.

"From the results of the meeting, we expect the Indian industry can be more aggressive in investing in Indonesia, especially in the steel sector, textile and automotive machinery," said Minister of Industry.

In addition to these three sectors, India is interested in investing in Indonesia for the pharmaceutical industry sector.

For that, Airlangga continued, the Indian government is expected to send a working group to help mapping the needs of the pharmaceutical industry in Indonesia. "We also encourage the exchange of experience and strengthening vocational training between Indonesia and India, especially in the pharmaceutical industry," he said.

According to the minister, Indonesia-India trade in 2017 grew to 43 percent compared to 2016. "We hope that the figure will continue to increase in the years ahead, and we believe there is still a lot of potential trade and investment that can be explored by both state, "he explained.

In an effort to enhance mutually beneficial cooperation, both countries need to provide facilities and access to trade and market access. "This is to increase the volume of bilateral trade and pursue the balance of trade balance," Airlangga continued.

Referring to the Central Bureau of Statistics (BPS) data, the total value of bilateral trade between the two countries in 2016 reached USD 12.9 billion. Indonesia-India trade balance in 2016 surplus for Indonesia amounted to USD 7.2 billion.

Indonesia's exports to India in the period from January to June 2017 was recorded at USD 6.9 billion, up 51.22% from the same period the previous year which reached USD 4.5 billion.

Indonesia's main export commodities to India include palm oil and its derivatives, coal, copper ore, and natural rubber.

Meanwhile, in January-September 2016, India's investment to Indonesia was at 25th position with realization value reaching USD37.76 million in 335 projects. This amount has increased when compared with the same period in 2015 with the realization of investment reached USD33, 2 million in 145 projects.