India and Indonesia are two largest emerging economies of the world: Vice President of India
India and
Indonesia are two largest emerging economies of the world: Vice President of
India
The Vice President of India, Shri M. Hamid Ansari has
said that India and Indonesia are two largest emerging economies of the world
and poised for expanding existing commercial relations as well as for
identifying new sectors of economic cooperation. He was addressing the
India-Indonesia Business Forum, in Jakarta, Indonesia today,
which was attended by the Vice President of Indonesia, Mr. Jusuf Kalla and a
large number of business people from India and Indonesia.
The Vice President said that engagement between India and
Indonesia remains vibrant and economic and commercial cooperation occupies
prominent position in the bilateral discussions. He added that he found a
strong desire in Indonesian leadership to expand commercial engagement with
India.
The Vice President stated that the market liberalization
of India in the nineties followed by calibrated economic reforms in the past
decade has led to sustainable economic growth and socio-economic development
and India's economy registered a growth of 7% in the last quarter. India’s
private sector has strengthened with the economic growth over the last two
decades and it is keen to expand its global operations, he added. He further
said that innovative spirit of Indian industry, backed by a strong government
research and development push and a network of quality education institutions,
make India and the Indian companies the most promising business partners today.
The Vice President emphasized that India has launched its
flagship programme of 'Make in India' for the ease of doing businesses through
simplification of existing rules and regulations. Infrastructure development
and energy security are key areas for cooperation for emerging economies like
India and Indonesia, he added.
The Vice President
said that India’s 'Act East Policy', as articulated by the Prime Minister of
India, aimed at rapidly scaling up our cooperation with ASEAN member countries
in crucial areas.
Following
is the text of Vice President’s address to the Business event:
“Members of the business forum,
I am very happy to be here today at this gathering of
captains of trade and industry from India and Indonesia, the two largest
emerging economies of the world. I see from your agenda that you would be
holding intensive deliberations on expanding our existing commercial relations
as well as for identifying new sectors of economic cooperation.
The overall engagement between India and Indonesia
remains vibrant and full of vitality. Economic and commercial cooperation
occupies prominent position in our bilateral matrix. In my meetings with the
Indonesian leadership, I found a strong desire to expand our commercial
engagement.
The market liberalization of
India in the nineties followed by calibrated economic reforms in the past
decade has led to sustainable economic growth and socio-economic development.
India's economy registered a growth of 7% in the last quarter which is one of
the highest rates globally. The fast rate of urbanization and the growth of a
large, aspirational middle class in India, coupled with a youthful population
make India one of the most attractive markets in the world today.
The last two decades of
economic growth have also strengthened India’s private sector and it is keen to
expand its global operations. The innovative spirit of Indian industry, backed
by a strong government research and development push and a network of quality
education institutions, make India and the Indian companies the most promising
business partners today.
Realizing the need for
enhancing the economic and strategic cooperation with countries in Southeast
Asia, India launched the 'Look East Policy' in 1991. Last year, the Prime
Minister of India envisaged a more proactive 'Act East Policy' aimed at rapidly
scaling up our cooperation with ASEAN member countries in crucial areas.
With vibrant democratic rule,
Indonesia's vast economic potential is ready to take off. The large economy, an
improving investment climate, a young and technically trained work force, and
abundant natural resources make Indonesia a natural partner for India. I
understand that Indonesia has also unveiled a series of economic reform
policies involving major deregulation measures aimed at reviving economic
growth. I am sure that these measures with create further opportunities for
collaboration between Indian and Indonesian businesses.
Excellencies,
While India and Indonesia share
cordial political relations, the bilateral trade and investments have not
realized its full potential. India is the largest buyer of
crude palm oil from Indonesia and also imports coal, minerals, rubber, pulp and
hydrocarbon in significant quantities. India exports refined petroleum
products, maize, commercial vehicles, telecommunication equipment, oil seeds to
Indonesia. There is a need to balance our bilateral trade as India's import
from Indonesia was US$ 15 billion against an export of US$ 4 billion in
2014-15.
For
us, Indonesia is not just a trading destination but a more significant
long-term strategic partner. We have a shared vision for building a peaceful
regional order and co-operate on a number of important security issues,
including anti-terrorism and maritime security.
As such, we need to synergize
our efforts in the areas of economy and business. The vast consumer market,
youthful and skilled human resources and expertise in the field of information
technology of India coupled with Indonesia's natural resources, youthful
population and strategic location would provide a platform for enhanced
economic engagement.
As
both India and Indonesia make an attempt to broad base their economy, they
should harness the complementarities in attracting investments which is a key
factor for a positive economic growth.
There
is a considerable potential for expanding trade in the areas of automotive
components, automobiles, engineering products, IT, pharmaceuticals,
bio-technology and healthcare sectors.
India
launched its flagship programme of 'Make in India' in September last year with
the objective of improving the ease of doing businesses in India through
simplification of existing rules and regulations. The initiative has made a
tremendous impact on the investment climate in India.
Infrastructure
development and energy security are key areas for cooperation for emerging
economies like India and Indonesia. These sectors allow for both our countries
to collaborate and benefit from each other's expertise. Infrastructure
stimulation programmes launched by the Government of India, like the mission to
develop 100 Smart Cities, upgrade infrastructure development in urban and rural
areas and enhance nationwide connectivity through the 'Digital India' programme,
have created massive opportunities for foreign partners in the Indian economy.
Our
societies are still largely agrarian. Therefore, agricultural industry, food
processing and related small and medium enterprises offer opportunities for
trade and investment which could be explored by our business houses with the
support from the governments.
India's
expertise and proven capabilities in production of pharmaceuticals, especially
generic medicines at affordable cost, advancement in healthcare sectors and
science & technology, high quality education at reasonable cost could also
be potential areas of investments by both sides.
To
fulfill the energy requirements, we have set an ambitious target of installing
175 GW of renewable capacity by 2022. This needs an investment of US$ 120
billion. The signing of the MOU on Renewable Energy Cooperation yesterday
reaffirms the commitment of India and Indonesia in working towards alternative
sources of energy.
I urge
the Indonesian companies to explore these opportunities of investing in
infrastructure and manufacturing sector in India particularly in downstream
manufacturing sectors like coal, palm oil and rubber which are exported to
India in large volumes.
Excellencies,
Given the growing trade and commerce between our
countries, maritime security becomes a significant area of cooperation.
Developing capacities for ensuring better costal security and disaster response
management are other key areas where India and Indonesia can cooperate.
Enhancing
the economic partnership and increasing bilateral trade and investment is a
shared responsibility of both the governments and the business communities. Our
existing bilateral mechanisms of Energy Forum, Biennial Trade Ministers Forum,
High-Level Task Force and CEOs Forum provide a strong platform to enhance our
business engagement.
Trade
links between India and Indonesia can be traced back to 2nd century
B.C. The ancient trade had led to great prosperity in the region. The
prosperity of Indonesia at the time had led to it being referred to as
‘Swarnadwip’ or the golden Island. We need to work together to reclaim that
legacy. I see a prosperous and peaceful future as our commercial interactions
deepen. It will open a new era of peace and prosperity, not only for our two
countries but the entire region.
I wish
you success in your deliberations.
Thank
you”
**********
India and Indonesia
relations are century old: Vice President of India
The Vice
President of India, Shri M. Hamid Ansari has said that
the relations between India and Indonesia are centuries old andforged by the
winds that blow across the Indian Ocean. He was addressing a public meeting in
Jakarta, Indonesia yesterday, which was attended by the Vice Minister of
Foreign Affairs of Indonesia, Mr. A.M. Fachir and large number of public.
The Vice
President quoted Rabindranath Tagore’s famous poem ‘Java’:
“In a dim, distant, unrecorded
age
We had met, thou and I, –
When my speech became
entangled in thine
And my life in thy life”
The Vice
President said that glorious past and
shared cultural ties of our nations create a strong platform for cooperation in
the future. He recalled, in 2005 both the countreis have agreed to become
Strategic Partners and two years back our nations have jointly assessed its potential
through the Five Initiatives for Strengthening the India–Indonesia Strategic
Partnership based on shared commitment to values of democracy, pluralism and
diversity and having economies with strong complementarities and challenges.
The Vice
President said that both countries have enhanced engagement in South-East Asia
and this was reflected in Prime Minister of India, Shri Narendra Modi’s remarks
last year in the India-ASEAN summit at Nay Pyi Taw in Myanmar: that “India’s
‘Look East Policy’ has become ‘Act East Policy’.”.
The Vice
President said that his visit underscores the
importance India attaches to Indonesia and said that there is a need to
synergize efforts in the areas of economy and business to correct the sectoral
and directional imbalance of our trade. The vast consumer market, youthful and
skilled human resources and expertise in the field of information technology of
India coupled with Indonesia's natural resources, youthful population and
strategic location would provide a platform for enhanced economic engagement.
The Vice
President said that spreading tide of extremism and terrorism is a threat both
nations face and successfully dealing with such threats requires strong
cooperation among like-minded partners. The rationale for a strong
India-Indonesia Strategic Partnership is clearer than ever, he added.
Mentioning rhe
common outlook on issues including economic
development, food security, counter-terrorism, and maritime security he said
that both nations also face similar economic
development issues and governance challenges. He futher said that there is much
we can learn from each other and the possibilities for cooperation across a
range of sectors are almost infinite. He said that
the Asia Pacific region and the world as whole would benefit from having
greater cooperation between India and Indonesia.
Following
is the text of Vice President’s public address:
“Excellencies,
Ladies and Gentlemen,
I am delighted to be in Jakarta, the capital of an old
and steadfast friend of India.
By a happy coincidence, my visit is at a time when
Indonesia celebrates the 70th Anniversary of its freedom. I bring good wishes
of the Government and the people of India on this auspicious occasion.
For centuries our countries have been linked by the winds
that blow across the Indian Ocean. These facilitated exchanges of ideas through
trade, religion and culture. We are important maritime neighbours, whose
relations are rooted in civilizational links that share similar perceptions of
the evolving maritime environment in the region and the world at large.
No one has interpreted better the true nature of
India-Indonesia relations than Rabindranath Tagore who visited the archipelago
in 1927. He movingly opened his famous poem ‘To Java’:
“In a dim, distant, unrecorded
age
We had met, thou and I, –
When my speech became
entangled in thine
And my life in thy life”
He spoke about journeys by ‘our ancestors’ that
resulted in the two lands becoming ‘companion souls.’ Citing
the tragic divide created by colonialism, he urged a renewal of age-old ties:
“That old that has been lost,
to be regained and made new”
Both India and Indonesia were in the forefront of the
struggle for freedom and anti-colonial movement. An earlier generation recalls
with fondness the friendship between the leaders of our freedom struggle. Since
the dark clouds of the colonial era, our relationship has developed rapidly.
Their combined efforts led to the independence of many countries in Asia and
Africa and created an impetus for an equitable world order in the middle of the
20th century.
Our glorious past and shared cultural ties create a
strong platform for cooperation in the future. This makes it incumbent on us to
delineate more precisely the contours of our relationship in the coming years.
Nations respond to challenges and imperatives. In 2005 we
agreed to become Strategic Partners. Two years back we jointly assessed its
potential through the Five Initiatives for Strengthening the India–Indonesia
Strategic Partnership based on shared commitment to values of democracy,
pluralism and diversity and having economies with strong complementarities and
challenges. We agreed to give shape to them through Strategic engagement,
Defence and Security Cooperation, Comprehensive Economic Partnership, Cultural
and People-to-People Links and Cooperation in Responding to Common Challenges.
The Joint Statement of October 13, 2013 spells out in some detail the areas of
cooperation agreed upon.
Our shared world view is reflected in our close
cooperation on regional and international issues.
Since 1991, India has assiduously followed a Look East
policy. This policy emanates from a realization that our economic progress and
well being is intimately linked to the growth and prosperity of the entire
Asian continent, especially of our friends across the Bay of Bengal and Andaman
Sea.
In recent months we have enhanced our engagement in
South-East Asia. This was reflected in Prime Minister Narendra Modi remarks
last year in the India—ASEAN summit at Nay Pyi Taw in Myanmar:
“India’s ‘Look East Policy’
has become ‘Act East Policy’. A rapidly developing India and ASEAN can be great
partners for each other. We are both keen to enhance our cooperation in
advancing balance, peace and stability in the region”.
The current economic relationship between India and ASEAN
countries presents a multitude of industrial, commercial, and investment
opportunities. We welcome ASEAN’s plans to establish economic and
political relationships with neighboring nations, and we have worked on
increasing bilateral trade, promoted foreign investment, and strengthened
diplomatic relations with all ASEAN members.
This creates strong complementary interests between India
and the countries in the region on the basis of the trident of Commerce,
Culture and Connectivity. These are sustained by more frequent political
exchanges. The India – ASEAN relations are thus poised to scale new heights.
My visit underscores the importance India attaches to
Indonesia as part of our increasing engagement with the region. As the largest
ASEAN state accounting for over 37 percent of population and over 33 percent of
combined GDP, and as a fellow member of G-20, Indonesia is of particular
interest to India. Our bilateral relationship is a key element of our
engagement with the entire ASEAN region. We look forward to strong cooperation
with Indonesia in building bridges and deepening of our relationship with the
entire region.
The time is also ripe for our common engagement for
bringing greater equity into the international order. India and Indonesia
have similar aspirations to have an open trading system through global
organizations like the WTO. We have also shown a strong commitment, based on
the principle of common but differentiated responsibility, as we take up our
own role to address issues related to climate change.
We are also together in the search for reforming the
United Nations, particularly its Security Council. India believes that the 70th
Anniversary of the United Nations is an appropriate occasion for it. The
role of the United Nations particularly its Security Council needs to reflect
the requirement of developing countries to have a greater say in decision making.
Peace Keeping under UN offers another yet area of our joint endeavours.
Despite the large size and rapid growth of our economies,
the trade and investment between India and Indonesia remains modest. There is a
need to synergize our efforts in the areas of economy and business to correct
the sectoral and directional imbalance of our trade and to further diversify
it.
The vast consumer market, youthful and skilled human
resources and expertise in the field of information technology of India coupled
with Indonesia's natural resources, youthful population and strategic location
would provide a platform for enhanced economic engagement.
There is a considerable potential for expanding trade in
the areas of automotive components, automobiles, engineering products, IT,
pharmaceuticals, bio-technology and healthcare sectors. Given their strategic
significance, Infrastructure development and energy, both traditional and
renewable, are key areas for enhancing our cooperation.
We need to encourage our private sectors to make
investments in infrastructure and manufacturing sectors in the each others’
country and for this the two governments are willing to provide a predictable
and comprehensive legal and taxation frame-work.
There is tremendous potential for enhancing our defence
ties. Indonesia has played host to ships of the Indian Navy and the Indian
Coast Guard on several occasions in recent years. We are also
happy that Indonesian ships are making more frequent visits to the Indian
ports. Our coordinated patrols between Belawan and the Andaman Islands
which are going on for 13 years, have been enhanced to the level of joint
exercises.
The Indian navy and Coast Guard has a high regard for the
Indonesian Navy and the new emerging Coast Guard and we hope to continue this
cooperation through technical, human resource development, capacity building
and contributing to the development of Indonesian capacities both physical and
human.
India's experience and abilities are available to
friendly Indonesia in this. We are ready to support technology transfer
and joint ventures for building medium size vessels to contribute to the
Maritime Policy of Indonesia. We are ready to support through
hydrographic surveys and institutionalized cooperation.
In the ancient period, we shared robust trade links. This
trade was mutually profitable and brought prosperity and peace to the region.
Today, as India and Indonesia stand together- two vibrant, youthful democracies
with large emerging economies, time has come perhaps to reclaim our past
maritime heritage and synergise the rising aspirations of our populations to
strengthen and deepen our strategic relations for a new era of peace and
prosperity across the Indian and Pacific oceans.
The economic and geo-political centre of gravity of the
world has shifted towards the Asia-Pacific in the 21st century, with the region
showing unparalleled dynamism in economic, political, security and demographic
terms. The Indian Ocean littoral states have also witnessed sustained growth
over the past few years.
Given the growing volume of our maritime trade and given
that we share a common maritime boundary along the Andaman Sea; we are natural
partners in ensuring the development and security of the Indian Ocean and the
pacific littoral region.
India has a shared vision for a peaceful region and the
seas around us. We believe that all trade routes and the sea lanes must
be protected from traditional and non-traditional threats and all countries
using these international waters must act with responsibility and
restraint. India and Indonesia both have a great need for open trade and
the sea lanes that carry it. Indonesia's idea of a Maritime Axis and
India's commitment to the Mausam Project which links the countries of the
Indian Ocean can bring benefit to us all.
India and Indonesia are one of the founder members of the
Indian Ocean Rim Association, the apex pan-Indian Ocean multilateral forum and
Indonesia is its current chair. We have identified six priority areas namely,
Maritime Security, Trade and Investment facilitation, fisheries management,
disaster risk reduction, academic and scientific cooperation and tourism
promotion and cultural exchanges. This provided a vision and a clear focus to
the activities of the association.
We look forward to cooperating with Indonesia in
furthering these goals in IOR. Indonesia, given its strategic location, can be
a bridge between the Indian and the Pacific Oceans. As one of the most
important countries of the Asia-Pacific rim- Indonesia is in an advantageous
position to connect a vibrant South Asia to the Pacific region.
As the countries in the East Asian region strive for
greater economic integration, the safety of sea lanes - critical for maritime
trade and commerce, maritime security, and access to marine resources in
accordance with accepted international norms, continues to assume greater
significance. The evolving situation in the South China Sea demands restraint
from all parties. We support collective efforts by ASEAN Member States
and China to conclude the Code of Conduct to keep peace and stability in the
region.
Non-traditional threats such as piracy, smuggling,
transnational crimes and drug-trafficking are on the rise and pose a challenge
for our countries and require strong and determined, coordinated action to
control. The spreading tide of extremism and terrorism is a threat we both
face. Successfully dealing with such threats requires strong cooperation among
like-minded partners. I am glad that we have taken some steps to institutionalize
cooperation in this area. We will continue to pursue more regular exchanges
between our security personnel.
The rationale for a strong India-Indonesia Strategic
Partnership is clearer than ever. We both are vibrant democracies, and are
influential powers globally and in Asia in particular. We share interests on
various issues including economic development, food security,
counter-terrorism, and maritime security. We both also face similar economic
development issues and governance challenges. There is much we can learn from
each other and the possibilities for cooperation across a range of sectors are
almost infinite.
The Asia Pacific region and the world as whole would
benefit from having greater cooperation between India and Indonesia to positively
shape a fluid regional security environment, including through partnerships
with other like-minded countries and by strengthening regional institutions
like ASEAN. Standing on a strong foundation of trust and friendship we can work
together towards realization of our common vision of a harmonious world.
Long live Indonesia-India friendship.
Thank You.”
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