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Tuesday, June 19, 2007

RI, India agree on plan of action to achieve $10b target

Abdul Khalik, The Jakarta Post, Jakarta

Indonesia and India discussed a detailed action plan to make their new strategic partnership agreement a reality on Monday.

The agreement, which was envisaged by President Susilo Bambang Yudhoyono and Indian Prime Minister Manmohan Singh in 2005, is aimed at enhancing cooperation in various fields and boosting economic ties.

Indonesian Foreign Minister Hassan Wirayuda and his Indian counterpart Pranab Mukherjee, who both headed their respective country's delegations at the Third Indonesia-India Joint Commission Meeting, signed a document on agreed minutes to enable a diversification of their trade basket while addressing the impediments to the expansion of trade and investment.

Beside addressing economic cooperation, the meeting also discussed various types of cooperation in several sectors, including political, defense, health, education and space exploration.

Citing the fact that bilateral trade between Asia's two largest democracies had increased significantly over the last several years, both ministers expressed optimism that the countries would achieve the US$10 billion target for two-way trade volume.

Bilateral trade value jumped to US$4.79 billion in 2006 from $3.93 billion in 2005. Trade value has tripled in the last five years, from $1.93 billion in 2002.

The balance of trade was in favor of Indonesia in 2006, with its exports to India at $3.39 billion while its imports reached $1.40 billion.

"The meeting has produced fruitful results. We are in agreement that we are on track to reach the target of $10 billion in 2010 as mandated by our leaders in their meeting in New Delhi in 2005," Hassan told a press conference after the meeting.

Mukherjee said that the agreed plan of action would serve as a blueprint for both countries' future cooperation.

"We believe that the joint commission has produced a very considered and focal document, which will serve as a reference point for expanding our bilateral relations in the future," he said.

The meeting also identified new fields of cooperation, such as special economic zones, the development of alternative energy sources, mutual legal assistance in criminal matters and an extradition treaty, health and pharmaceuticals, oil and gas, mining and biotechnology.

Both ministers also agreed that Indonesia and India needed to cooperate to secure the Malacca Straits from terrorist and piracy threats.

"It is necessary to ensure the security of the Indian Ocean and the Malacca Straits, which are passed by nearly 60 percent of world's energy. The growing activities of terrorist groups and non-state actors in organizing crime requires the attention of the littoral states and international community to ensure the safety of energy flow," Mukherjee said.

India, however, could not take part in Indonesia's plan to build its first nuclear power plant in Central Java as it has to finish negotiating with the United States on nuclear power first.

After the meeting, a memorandum of understanding concerning the setting up of a vocational training center for the construction sector in Aceh was signed by Indonesian Public Works Minister Djoko Kirmanto and Mukherjee as a symbol of India's contribution to the recovery of Aceh.

Source : TheJakartaPost

by cluk at 1:32 PM |