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Indonesia, India must enhance anti-terror, bilateral trade ties: Widodo

Prime Minister Narendra Modi shakes hands with President of Indonesia Joko Widodo at a meeting in Nay Pyi Taw, Myanmar in this November 13, 2014 file photo. Mr. Widodo, who is coming to India on Monday on a 2-day state visit, has sought greater cooperation with New Delhi on anti-terror and bilateral trade cooperation. The President of the country with the largest Muslim population pointed out that no nation was immune to terrorism.   | Photo Credit: PTI

President Joko Widodo on Saturday said Indonesia and India must cooperate closely in the key areas defence, security and counter-terrorism as no country was immune to a terror attack and also sought stepping up of bilateral trade ties.

“I am very much looking forward to have discussions Prime Minister Modi,” Mr. Widodo told PTI in an interview ahead of his state visit to India, beginning Monday.

The Indonesian leader has said he sees closer cooperation between Indonesia and India in defence, security and anti-terrorism fields.

“This is something that we are currently discussing...both our countries have large maritime regions, so cooperation in this sphere is welcome,” said Mr. Widodo, the President of the country that has the world’s largest Muslim population.

“Indonesia will always cooperate with all countries to fight terrorism through the exchange of information as well as intelligence exchanges and cooperation,” he said.

‘Cultural, religious ties’

“I hope to increase ties in all sectors, especially economic. We have cultural and religious ties going back centuries. Ramayana and Mahabharata are very famous in Indonesia,” Mr. Widodo said. He has said the discussions with Mr. Modi will cover economic, trade and investment collaboration.

The Indonesian President said his country was also willing to consider a bilateral trade pact with India.

“This is something that we are willing to consider. The important thing is that such trade deals must benefit both parties,” he said ahead of the two-day trip, the first by the Indonesian President after former President Susilo Bambang Yudhoyono’s visit in 2011.

“Strong leadership is important at this time,” said Mr. Widodo on Mr. Modi’s tough decisions for accelerating the Indian economy and development.

Investment in pharma, infra sectors

Mr. Widodo said he had held several discussions with Mr. Modi on Indian companies’ investment in Indonesia. He stressed that he would like to see Indian investment in the pharmaceutical sector as a priority and also in the infrastructure.

The President listed investment opportunities in his country, saying, “We have huge infrastructure needs, including toll roads, power plants, ports and airports. This is especially the case for the areas outside Java.”

“We feel that investments in this [infrastructure] sector will prove just as lucrative,” he said.

Responding to a question on Indian companies’ participation in the Indonesia’s coal mining sector, Mr. Widodo said that both countries have a Joint Working Group on Coal to discuss the cooperation regarding coal.

He stated that Indonesia is actively reforming its regulations to make doing business easy for both foreign and local investors.

Promoting indigenous spices

Mr. Widodo said he would welcome an initiative to work jointly to promote indigenous spices, such as cloves and pepper from the two countries, on the global markets.

“I believe it’s important for countries like ours to ’market’ themselves to the global community. The best way to do this is to develop and highlight indigenous local products, such as spices,” he said.

Mr. Widodo said he would also like to see more Indian tourists visiting Indonesia.

“We have many tourist destinations including Labuhan Bajo (Komodo islands), Raja Ampat in Papua and Jogjakarta and Solo in Java,” he said.

Many similarities

The Indonesian President also highlighted many similarities between India and Indonesia.

“We are also large, diverse countries which are democracies,” he said.

Talking about raising the representation of developing countries in international forums like the World Trade Organisation and the United Nations, Mr. Widodo said, “Indonesia wishes to be an active and constructive member in international forums.”

“We definitely feel that the voices of developing countries should be heard more on the world stage,” he said.

More equity into global order

Mr. Widodo, while responding to Vice-President Hamid Ansari’s call to Indonesia to work with India to bring more equity into the international order through forums like WTO and the UN, said, “We are willing to work with India to help bring this about.”

Asked about further business liberalisation under the ASEAN-India Free Trade Agreement, the President said,” the respective countries must be prepared in order to fully benefit from such agreements.”

“Indonesia is seeking to cut red tape and ensure that our local businesses are more competitive,” he said.

“There will be greater acceptance and support for such [multi-country trade] agreements if this can be achieved across the board,” he said.

Declining trade surplus

Indonesia enjoys trade surplus with India, though the volume has been small and declining, according to data from the Ministry of Foreign Affairs.

The January-June 2016 bilateral trade was $5.9 billion, down 26.37 per cent on the year.

Indonesia exported $4.57 billion worth of goods, including coal, palm oil, natural rubber, copper and ores among others.

Imports from India were at $1.33 billion, a surplus of $3.246 billion in Indonesia’s favour.

In 2015, bilateral trade was USD 14.45 billion.

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