Indonesia-India Trade Expected to Reach USD12 Billion

Jakarta, Indonesia (News Today) - Two-way trade between Indonesia and India is expected to reach US$12 billion this year after falling to US$9.6 billion last year due to the global economic crisis, an official said.

"There seems to be an increase. This year it may reach US$12 billion," Director General of International Trade Cooperation at the Trade Ministry Gusmardi Bustami said here on Friday.

Data from the Trade Ministry show trade between the two countries reached US$9.3 billion in the first nine months of this year. The implementation of ASEAN-India Free Trade Agreement (AIFTA) also had contributed to increased trade relations between the two nations, he said.

"Indonesia began introducing AIFTA only on Oct 1. but it has used a lot of AIFTA preference facilities. According to data from the Trade Ministry, (our trade using) certificates of origin under AIFTA preference scheme has already reached US$120 million," he said.

Indonesia’s exports to India with a population of 1.17 billion continued to increase all the time. In 2005, Indonesia’s exports to the world’s second fastest growing economy stood at US$2.9 billion. The figure rose to US$3.4 billion in 2006, US$4.9 billion in 2007, US$7.1 billion in 2008 and US$7.4 billion in 2009.

In the year as of August 2010, Indonesia’s exports to the South Asian country reached US$6 billion, a 34.7 percent increase compared to the same period last year. Indonesia recorded a surplus of US$4.6 billion in its trade with India in the first nine months of 2010.

Indonesia’s key exports to India include vegetable oil, crude palm oil, coal, copper ore, cashew nut, newsprint, chemicals, and natural rubber. Meanwhile, India’s exports to Indonesia mainly consist of nylon thread, organic chemicals, iron and steel products, synthetic fiber, and cotton.

Source : kompas

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