Minister: Please Beware talks with India

Minister of Industry (Minister) MS Hidayat warned to watch out for talks with India within the framework of comprehensive bilateral Indonesia-India Comprehensive Economic Cooperation (II-Ceca).

Although this time Indonesia had a trade surplus with India and the national private entrepreneurs are relatively more ready to partner and compete with India.

"Do not forget they negotiator, negotiators hand-picked. In the world, middle manager many Indians. We also must be vigilant not to be defeated in the negotiations," said Hidayat detikFinance when contacted on Monday (13/12/2010).

Hidayat said that, if well prepared and thoroughly cooked bilateral cooperation between Indonesia and India are very profitable. At least India could become an option for national entrepreneurs in exploiting opportunities from India than from China.

India so far has been known for a good mastery of technology, the machines are competitive, especially in IT (information technology). In addition, India also has a huge market, exceeding the Indonesian market.

It is said Hidayat, various preparations have been undertaken by Indonesia in order to welcome the negotiations with India. Two weeks ago the Head of Investment Coordinating Board (BKPM) Gita Wirjawan has visited India to meet a lot of related private sector exploration investment to Indonesia.

"On 22 January (2011) president will be to India," he said.

Currently, Indonesia and India were preparing a comprehensive bilateral cooperation in the field of trade in goods and services, investment and technical cooperation are summarized in the Indonesia-India Comprehensive Economic Cooperation (II-Ceca).

Both countries have also been included in the cooperation of free trade that accommodated through the ASEAN-India Free Trade Agreement (AI-FTA).

Indonesia and India have agreed to discuss the negotiations II-Ceca. To achieve the talks still require several meetings to formulate the discussion and the location of the talks.

Background of the establishment of this cooperation because the two countries, namely Indonesia and India have the power of a very high complementarity in the field of trade in goods and services, investment and technical cooperation. Both countries have the same opportunity to increase trade and investment.

Based on data from the bilateral trade during January-2010 has reached U.S. $ 8.2 billion, an increase of 38.16% from the same period in 2009. Indonesia recorded a surplus of export up to U.S. $ 4.01 billion of total trade with India.

Although recognized level of import duties imposed by the country of Hindustan is still relatively high at an average of 35%. With the cooperation of ASEAN and India free trade, including bilateral Indonesia-India through II-Ceca then the problem of tariffs could be reduced to a point that could benefit both countries.

In the field of investment in both countries likely to develop investment, such as India likely to invest in Indonesia in the field of food, textile fibers, plastics, wood products, agro products, pharmaceuticals, machinery, audio visual, telecommunications, IT, education and other.

While Indonesia is also likely to invest in India in sectors such as chemicals, infrastructure, hotels, hospitals, tourism, electrical machinery, non electricity and others.

As is known in October 2005 the heads of both countries agreed to form II-Ceca which is a comprehensive co-operation. At least have done a feasibility study with a bunch of forming a joint study between Indonesia and India that have been completed in September 2010.


Source…; Detik finance