Press Release

India-Indonesia Trade set to double and reach USD 20 billion over the next five years Jyotiraditya Scindia opens the Made in India exhibition in Jakarta, Indonesia.

Confederation of Indian Industry’s 24th Made in India exhibition was inaugurated by Mr. Jyotiraditya Scindia, Minister of State for Commerce and Industry, Government of India and his counterpart the Minister of Industry of Indonesia, H.E. Mr. Fahim Idris today in Jakarta, Indonesia.

With participation from over 60 exhibitors this exhibition has been organised by the CII with the support of the Embassy of India and the Ministry of Commerce and Industry, Government of India.

At the inaugural today, Mr. Jyotiraditya Scindia said ‘India and Indonesia share several commonalities – both the countries have concluded two largest democratic processes and face the challenges of global slowdown. However, both countries have risen to the challenge and are amongst the few stable and growing economies.

“The Indian government rose to the occasion with a stimulus package of 3.5% of GDP and was effective in arresting the fall in growth rate of GDP. Although, there was a drop in our manufacturing and export sectors, the overall GDP growth has not seen a sharp drop. During fiscal 2008-09, the Indian Economy expanded by 6.7% compared to 9% the previous year and fiscal 2009-10 would see a growth of 10% “ observed the Minister.

“Economists now need to include Indonesia in the BRIC configuration of rapidly growing emerging economies of the future” said Mr. Scindia.

Mr. Scindia said that “India’s manufacturing strengths are attracting overseas companies, making it a preferred investment destination. Except for a small negative list, FDI is allowed mostly on the automatic route into India. This policy has led to FDI equity inflows growing from close to US 5 billion dollar during 2003-04 to over 27 billion in 2008-09. Despite the global economic crisis, our FDI registered a growth of 11% over the previous financial year”. The Minister said that India’s trade with ASEAN grew 5 times during 2001 and 2008 with a compounded annual rate of 28%.

Earlier at the Made in India inaugural, H.E Mr. Fahin Idris, Minister of Industry, Indonesia said that Indonesia is currently implementing the New Investment law that would contribute towards creating a conducive investment climate in Indonesia making it a “Business- friendly economy” thus making Indonesia a more exciting investment destination for Indian companies.

Mr. Rajive Kaul, Past President, CII and Chairman NICCO Corporation in his welcome address said that the two countries should identify certain goods and services and focus strong efforts on further increasing trade and investment. Mr. Kaul set a target of USD 20 billion for trade between the two countries over the next five years.

Mr. Chandrajit Banerjee, Director General, CII said that the exhibition in Jakarta is much larger than the earlier shows the CII has organised and thanked the Ministers for charting out the roadmap for CII to implement. “This show was just the starting point for the several initiatives planned ahead’ observed Mr. Banerjee.

Mr. Mohamad Hidayat, President of the Indonesian Chamber of Commerce and Industry (KADIN) in his remarks said that ‘India and Indonesia economic relations have always been strong and solid and India remains a potential and strategic partner. The trade target of USD 10 billion for 2010 has already been achieved well ahead of the set deadline’.

Indonesia is the largest country in the ASEAN region and is India’s third largest trading partner in the region making it one of India’s most important economic partner in the region.

Coinciding with the Made in India show, CII also organised a seminar titled “Investment Opportunities in India – The India-Indonesia Road Map Ahead”. This seminar was attended by over 200 Indonesian businesses, media and academics.

CII has also organized an ‘India Evening’ which would showcase Indian cultural performances and food and is expected to be attended by key officials from the Indonesian Government, Diplomatic corps and media.

CII has also mounted a 15 member Business delegation to Indonesia. The CII business delegation met the Ministers of Trade H.E Mari Pangestu and Minister of Industry H.E Fahim Idris yesterday along with the Chairman of the Indonesian Board of Investment, Mr. Mohamad Lutfi.

The delegation also discussed ways and means of increasing the existing India-ASEAN trade of USD 37 billion further with senior officials from the ASEAN Secretariat as well.

7th October 2009
Jakarta