Looking
at the enthusiasm of India, which saw Indonesia as a country with a
well-developed automotive growth, Minister of Industry Saleh Husin invited some
Indian steel companies, which have existing investment in Indonesia, to produce
steel plates to meet the automotive needs in Indonesia. In addition, when
receiving the visit of a number of Indian businessmen who are members of the
Confederation of Indian Industry (CII) at the Ministry of Industry, in Jakarta,
on Wednesday (April 29), he also offered to them to participate in the
procurement of 35 thousand-MW power plant or other infrastructure projects.
The delegation led by Regional Director
of ASEAN and ANZ International Department of CII, Sujata Sudarshan, who brought
12 Indian business leaders from various sectors, among others, power
generation, steel, machinery and heavy equipment, and automotive. At the
meeting, Minister of Industry was accompanied by officials of the Ministry of
Industry, among others, the Director general of Manufacturing Industry Basis,
Harjanto, Director general of Agro Industry, Panggah Susanto, Acting Director
General of International Industrial Cooperation, Diah Winarni Poedjiwaati, and
the Director of Land Transport Equipment Industry, Soerjono.
“I hope that this important meeting
is not only to maintain good relations between the two countries, but can also
be used to establish long-term and mutually beneficial cooperation in the
business relationship between Indonesia and India,” said Industry Minister,
Saleh. Some other sectors which are open for investment include, among others,
machinery and heavy equipment industries.
The Indonesian government allows foreign
investment in the sectors stipulated in Presidential Decree No. 39 of 2014 on
List of Business Fields Closed and Business Fields Open with requirements in
the Field of Investment. “In general, the incentive given is in the form of tax
holiday, tax allowance and exemption of import duties for the importation of
machinery and raw materials for improvement in order to increase industrial and
business cooperation between Indonesia and India, “he explained.
India’s total investment in
Indonesia in 2014 reached USD 37.1 million which is the 24th
position. While, the value of Indian investment in the industrial sector
reached USD 12.8 million or 34.7% of total Indian investment value is in the
food industry at USD 9.1 million. “Opportunities for Indian investors are still
wide open, especially in the maritime and machinery industries, “he said.
Currently, the Indonesian government
is prioritizing development in infrastructure development, power, maritime
(ports and fisheries) sectors, export-oriented industrialization and
development acceleration in the regions. Therefore, Soerjono added that India
should immediately invest in the steel plate industry, so as to reduce imports
of this type of steel to Indonesia.
“One of the development strategy set
by President Joko Widodo’s Working Cabinet was the development dimension of
lleading sectors, which include food sovereignty, energy sovereignty and
electricity, maritime sovereignty, and tourism and industry sovereignty,” said
Saleh.
Previously, related to the visit of
Indian Foreign Minister, Sushma Swaraj, to Indonesia last week, in the
framework of inauguration of India’s mission to ASEAN, which emphasizes the
importance of India as a key strategic partner for ASEAN, in the future it is
expected that in developing this cooperation to more focused, to run
objectively, and synergistic while speeding up India – ASEAN cooperation more
concretely.
Meanwhile, Director General for
ASEAN Coperation of the Ministry of Foreign Affairs, Ambassador I Gusti Agung
Wesaka Puja, on the occasion expressed his hopes that with India – ASEAN
bilateral trade which nearly reached USD 80 billion and two-way investment
worth more than USD 56 billion, trade and investment between the two regions
will be more engaged and stable in the future. With ASEAN countries, India has
also actively cooperated to face challenges and opportunities, including
building collaborations in wider sectors or areas, such as in the fields of
agriculture, education, environment, renewable energy, science and aerospace,
marine biotechnology, small and medium industries, tourism, as well as exchange
programs for students, journalists, farmers, and scholarship program. (E)
Business New - May 6, 2015
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