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Indonesia seeks enhancement of trade ties

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BS Reporter Kolkata/ Bhubaneswar
Last Updated : Jan 20 2013 | 12:21 AM IST

Indonesia, a member of Association of South East Asian Nations (ASEAN), wants to enhance its trade relations with Orissa. It has extended invitation to entrepreneurs from Orissa to invest in sectors like food and beverages, sea products processing, textile and textile products, footwear, rubber and rubber goods, electrical appliances, petro-chemical and mining.

Since these industries have been categorised as priority industries for next 10 years by the Indonesian government, the Indian investors can look forward to invest in these sectors to benefit from comparative cost advantages, Andi M Ghalib, ambassador of republic of Indonesia said here.

Participating in an interactive session on business opportunities in Indonesia after signing of India-ASEAN free trade agreement, organised by the Utakal Chamber of Commerce and Industry (UCCI), he said, there is no discrimination between the foreign and domestic investors for setting up of industries in Indonesia.

There are designated industrial zones where the foreign investors can start their enterprise without any hassle. Mineral sectors like coal mining also offer excellent opportunity for investment with a couple of Indian companies like Tata group acquiring coal mines there. Stating that Indonesian economy is improving, Ghalib said, the country aims to be an industrialized economy by 2020.The growth of the Gross Domestic Product (GDP) is projected to be 5.6 percent in 2009 and this is targeted to reach 7 percent in next 2 years. “Indonesia offers a compelling investment proposition given its market size, strategic location in south east Asia and availability of natural resources”, he said.

While 44 Indian companies participated in the Trade Expo held in Jakarta last year, about 125 companies are expected to take part in the manufacturing expo in Indonesia to be held from 1st to 5th December 2009.

In this backdrop, he suggested that there should be exchange of business delegations from both sides and invited Ghalib to arrange for a visit by Indonesian chamber to Orissa. Ghalib promised to work for developing the relationship between Bhubaneswar and Bali through ‘sister city’ concept.

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First Published: Nov 24 2009 | 12:43 AM IST

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