India-Indonesia bilateral trade set to hit $25 billion by 2015

Bilateral trade between India and Indonesia is set to reach the $25 billion target by 2015, ahead of schedule, minister of commerce, industry and textiles Anand Sharma said while reviewing business ties between the two countries with his counterparts in Jakarta yesterday.

''We now see ourselves achieving the next target of $25 billion by 2015 comfortably. With the implementation of India-Asean FTA by us since October last year, trade and investment flows between our countries would accelerate and would help achieve and exceed the target easily,'' said Sharma.

Both sides have agreed to speed up negotiations on bilateral CECA, Sharma said while emphasizing the need for Indonesia to improve its offer on services in the context of the Indian ASEAN FTA in services and investment. 

Sharma also pushed for movement of professionals under Mode IV - both in context of India-Asean FTA as well as further investment opportunities in future.

''Opening up the two economies for service trade would be a win-win situation for both the countries,'' he observed.  Indonesia does not allow movement of professionals in health and banking sector.

Gita Wirjawan, Indonesia's minister for trade, agreed to take up these issues with the health department and the Central Bank of Indonesia. Sharma also flagged important issues relating to the non-tariff barriers for pharmaceutical sector and the import of bovine meat into Indonesia.

The Indonesian minister acknowledged that it was important for Indonesia to have more open regime for trade and investment in all three sectors, as this would benefit Indonesian consumers by bringing down prices and providing opportunities for investments from India.