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      India and Indonesia decide to cooperate on reaching a Comprehensive Economic Partnership agreemen with a view to increase bilateral trade to $10 billion by 2010

      Posted AtIndia Daily

      "We have decided to to set up a Joint Study Group to examine the possibility of a comprehensive economic partnership. We want to see a three fold rise in bilateral trade to US$10 billion by end of the decade," Indonesian Trade Minister Mari Pangestu said after a FICCI meeting.

      Commerce Minister Kamal Nath said the India-Indonesian Joint Business Commission would work out the time frame for exploring this agreement. Noting that it was time for expanding trade by leaps and bounds, he said it could only be done by diversifying trade basket. New Delhi raised various issues like non-tariff barriers on its exports items including meat and some of the other processed food items.

      Indonesia, which is seeking to enhance palm oil exports to India, wants New Delhi to lower tariffs on processed oil."We have asked the Indian government to look into the issue of differential duty structure on soya oil and processed palm oil besides the conditions on sulphur content of coal," Pangestu said.

      She said Indonesia offered huge potential for trade and investment and some of the Indian companies in the textiles and steel, who have their facilities there, speak of the investment friendly conditions.

      Outlining areas for investment, She said Indonesia could especially partner with New Delhi in textiles, steel, IT and telecom, pharmaceuticals, health and other services.

      August 09, 2005


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