Indonesia invites Indian investments in infrastructure

July 16th, 2011 - 10:26 pm ICT by IANS  

Chennai, July 16 (IANS) Indonesia invites Indian industrialists to invest in infrastructure sectors and also look at it as a source of many other products apart from coal in order to expand bilateral trade and investments between the two countries, its envoy said Saturday.

“Indonesia is not just a large coal producer. We have other national resources which India can look at. We would like to grow the bilateral trade between India and Indonesia to $25 billion by 2015 from the current $13 billion,” Indonesian Ambassador to India Andi M. Ghalib said here at a meeting with industrialists organised by Confederation of Indian Industry (CII).

Referring to the 32 memorandums of understanding (MOU) signed between India and Indonesia early this year, he said 18 are business-to-business with an investment/business potential of around $16 billion.

Inviting Indian industrialists to invest in infrastructure sectors in Indonesia, Ghalib said the discussions between the two countries on signing a Comprehensive Economic Cooperation Agreement (CECA) will be held.

Investment cooperation between the two countries is also increasing by the year. India’s investment in Indonesia has increased from $11.6 million in 2007 to $44 million in 2010.

Indian investment is present in various industries including mining, automotives and machinery, clothing, agriculture and chemicals.

India is also Indonesia’s largest buyer of crude palm oil and an importer of its mining, petroleum and paper products.

On its part, India exports refined petroleum products, wheat, rice, sugar and steel to Indonesia.

According to Ghalib, the two countries are in the process of setting up an Eminent Persons’ Group (EPG) to develop ‘Vision Statement 2025′ for the Indonesia-India strategic partnership.

The EPG would guide the future progress and prepare a blue print of Indonesia-India relations over the next 15 years.

Ghalib said Garuda Airlines is in discussion with India in securing landing rights in couple of major Indian cities.

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