The Hindu Business Line : Trade with Indonesia needs to be diversified, says Kamal Nath

Addressing an Indo-Indonesian Business Summit, Mr Kamal Nath said that the diversification of trade basket would expand the bilateral trade leaps and bounds.

The visiting Indonesian President, Dr Susilo Bambang Yudhoyono, was also present at the Business Summit.

The Commerce Minister mentioned pharmaceuticals, information technology, two- and three- wheelers and rail transportation as sectors that offered excellent scope for diversifying two-way trade as well as investment.

Mr Kamal Nath said that the two-way trade last year increased by over 35 per cent to touch almost $4 billion.

He said that Indian companies have invested more than $2 billion in Indonesia.

"This is a marvellous example of South-South cooperation.

"In view of such positive indications, this is the time for us to seize the opportunity and take our economic engagement to an even higher trajectory," Mr Kamal Nath said.

He said that Indonesia is India's second largest export market in Asean (after Singapore) and one of the country's leading export destinations among developing countries.

The Commerce Minister also expressed confidence that the problem of non-tariff barriers would be resolved at the earliest.

Dr Yudhoyono said that he had in his meeting with the Indian Prime Minister, Dr Manmohan Singh, stressed the need for strategic partnership between the two largest democracies in the South-East Asian region.

He also called upon Indian industry to invest in Indonesia now and use it as a gateway towards establishing closer trade linkages with Asean, which in the near future is expected to emerge as one of the stronger influential trade blocs.

He offered his country's support to India during the forthcoming Ministerial talks in Hong Kong on various multilateral issues and issues related to subsidies.

The President added that Indonesia was committed to eliminate terrorism and corruption to ensure that the country emerged as a safer place for overseas investments.

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