Aug 27 2013, 7:26am CDT | by IANS
This was stated Tuesday by Didie W. Soewondho, vice chairman of KADIN, welcoming the Federation of Indian Chambers of Commerce and Industry (FICCI) business delegation to Indonesia led by FICCI president Naina Lal Kidwai. The delegation includes CEOs of leading companies like Modi Enterprises, Indo Rama Synthetics, Mahindra & Mahindra and Tata Motors.
Pointing out how Indian investment in Indonesia has been on an upward trend, Soewondho outlined the areas of infrastructure, manufacturing and energy as potential sectors for Indian companies to invest, a statement by the Indian embassy here said.
Kidwai said the Indian firms on this trip are visiting to explore the plentiful business opportunities the country has to offer throughout a wide spectrum of various industries like energy, tourism, automotive, information technology and business process outsourcing, infrastructure, pharmaceuticals and consumer goods.
"We believe that the full potential for Indian companies in Indonesia has not yet been recognized," Kidwai said.
Foreign direct investment (FDI) from India into Indonesia totalled $78.1 million across 58 projects last year, and has already reached $57.1 million through 59 projects in the first half of this year.
According to Indonesia's Central Statistics Agency, bilateral trade between the two countries was worth $16.8 billion in 2012, and has already reached $7.56 billion over the first half of 2013, which is up 5.9 percent year-on-year over the same period in 2012. The two countries have set a target of $25 billion in bilateral trade by 2015.
Speaking on the occasion, Indian ambassador Gurjit Singh called for adding more substance to the trade relations between the two countries.
"While we have comprehensive free trade agreements with some other countries, with Indonesia, our structure is a bit weak. We want to strengthen that structure through an agreement because Indonesia today is a more important country for our investment and trade," Singh said
Negotiations on an Indonesia-India Comprehensive Economic Cooperation Agreement (II-CECA) began a few years ago.
The Indian business delegation has also met with the Indonesia Investment Coordinating Board for an overview of the investment opportunities and regulatory aspects, the embassy statement said.
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