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New Delhi: In a big
boost to New Delhi's Look East policy, India and Indonesia are set
to ink around three dozen agreements, including an extradition
treaty, and seal business deals worth $15 billion after the
leaders of the two countries hold talks here Tuesday.
Accompanied by senior ministers and a 140-strong business
delegation, Indonesian President Susilo Bambang Yudhoyono arrived
here Monday on a three-day visit that aims at take burgeoning
bilateral trade and investment to new heights. He is also the
chief guest at the Republic Day parade Wednesday.
Yudhoyono will be accorded a ceremonial welcome at Rashtrapati
Bhavan Tuesday morning before he joins Prime Minister Manmohan
Singh for delegation-level talks.
The two sides are expected to sign a record 34 agreements after
the wide-ranging talks. The accords will include an extradition
treaty and expanding cooperation in combating terror, money
laundering and exchange of information on criminal activities.
Agreements dealing with economic cooperation, science and
technology as well as culture and education will also be signed.
Economic diplomacy will be the centrepiece of the Indionesian
presidential visit.
Indian companies are set to unveil new investments in
infrastructure, natural resources, manufacturing and services in
the South-East Asian country.
Before leaving Jakarta, Yudhoyono Monday announced that he hoped
to help secure investment deals worth $15 billion during his trip
to India. "The investment value is $15 billion, which includes
cooperation in infrastructure, manufacturing, natural resources
and services," he said.
Indonesia has ambitious plans to spend $140 billion until 2014 on
bolstering its infrastructure and reaching an economic growth
target of seven percent.
An agreement on biennial meeting of trade ministers will also be
inked. Expanding cooperation in the area of maritime security
through enhanced naval patrolling will be among the issues that
will be discussed.
The two sides are expected to announce a target of nearly doubling
to $20 billion their burgeoning bilateral trade by 2015.
They are also likely to formally begin negotiations for a
Comprehensive Economic Cooperation Agreement (CECA) next week.
Indonesia has consistently backed a bigger role for India in the
Association of Southeast Asian Nations (Asean) and in the East
Asia summit.
Five major Indian business houses, including Tata and the Anil
Dhirubhai Ambani Group, have made investment commitments in
Indonesia worth $20 billion to be undertaken this year. Other
companies like Essar and Jindal that are already operating in
Indonesia also will add to the ventures.
India could potentially invest in Indonesia's palm oil, food
processing, rail and port construction. The Foreign Direct
Investment (FDI) inflow from Indonesia was in non-conventional
energy, construction, information and broadcasting and electrical
equipment.
Indonesia is also looking for English language learning facilities
from India, besides from institutions of higher learning.
Indorama, a textile group, and Harmony soap are among the few
Indonesian brands operating in India while Mayora is setting up a
food processing unit near Chennai.
Indonesia is looking at India, with its estimated 330-million
middle class population with buying power, as a major market.
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