India-Indonesia trade could quadruple in 10 years: Indonesia Business Chamber Head Anindya Bakrie

New Delhi, Jan 28 (PTI) Bilateral trade between India and Indonesia, which is around USD 30 billion, could quadruple in a decade, Anindya Bakrie Chair of the Indonesia Chamber of Commerce and Industry (KADIN), said and expressed hope that both countries could grow together and serve the world effectively.

The CEO of Bakrie and Brothers, which focuses on manufacturing and infrastructure sector, emphasised that the historical cultural ties between the two nations aid in deepening trade and investment relations.

"The relationship is at an all-time high. In terms of trade and investment, the current trade volume of USD 30 billion is still very small; it could quadruple in 10 years if managed correctly," Bakrie, who was part of the Indonesian presidential delegation meeting Prime Minister Narendra Modi to discuss trade relations, told PTI.

Bakrie further noted that "the more important aspect is how we can work together to serve the world, whether in manufacturing, technology, pharmaceuticals, education, or energy transitions." India and Indonesia are expected to hold the 2nd meeting of the Working Group on Trade and Investment, as well as the 4th Biennial Trade Ministers' Forum this year to address outstanding tariff and non-tariff barriers to trade.

"I think Indonesia and India can grow together very well, and the cultural history certainly helps. We also share an appreciation for our own interpretations of the Ramayana, Bhagavad Gita, and Mahabharata," he added.

Recognising the importance of building domestic defense manufacturing capabilities, Indonesian President Prabowo Subianto, who was the chief guest at Republic Day celebrations, appreciated India's advancements and expressed interest in enhancing cooperation in this sector.

India agreed to support Indonesia's ongoing defense modernisation programs through experience and expertise sharing.

"Defense is something our President wants to focus on, an area where India excels. Also, given the strategic location of both India and Indonesia in the Indo-Pacific region, I am not surprised that this could generate jobs and balance trade more equitably," Bakrie stated.

Responding to a question about US President Donald Trump's statements against BRICS nations, Bakrie noted that tariff and non-tariff barriers are impediments to free trade.

Trump had threatened to impose 100 per cent tariffs on countries within the BRICS bloc, including India and Indonesia, should they attempt to displace the US dollar.

"I think tariffs and non-tariff barriers are impediments to free trade. So, when people discuss these, of course, it worries us. We live in a world where we must balance between different markets. That's what Indonesia and India are doing, seeking alternative markets, and BRICS has the population and markets to serve as an alternative for Indonesia," Bakrie said.

He highlighted that the US remains an important trade partner for Indonesia, ranking among the top one or two.

"Under President Trump's second term, we hope that our honest attempt to become a member of BRICS will not hinder our further relationship with the US. "However, Indonesia possesses certain resources that the world needs, such as critical minerals like nickel, copper, tin, and bauxite, which we can process domestically and export as finished products. The US also needs these resources," he noted.

The Indonesian businessman expressed hope that Indonesia and the US might explore a free trade agreement to deepen their ties. PTI RK DRR

Source: PTI