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