India-Indonesia Inks Tax Treaty

New Delhi, July 28, IRNA -- India and Indonesia Friday inked a treaty on avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and discussed strategic bilateral and regional issues. External Affairs Minister S M Krishna and his Indonesian counterpart Marty M Natalegawa co-chaired the fourth meeting of the India-Indonesia Joint Commission and identified specific areas in which both countries would be working together to take the relationship to the next high level. 'Prior to the Joint Commission Meeting, Foreign Minister Marty and I had very useful discussions on the current status of our bilateral relations and exchanged views on regional and international issues,' Krishna said at a joint press interaction with his Indonesian counterpart here. Pointing out that the two countries became strategic partners in 2005, Krishna said 'Indonesia is an important partner for us in our 'Look East policy'. Our trade has expanded rapidly and has now touched USD 20 billion. We are confident of achieving the target of USD 25 billion set for 2015. 'Indian investment in Indonesia is rising. We are also cooperating in several other sectors, including energy, oil and gas, coal, marine and fisheries, agriculture, science and technology, education, culture and defense. It is understood that under the avoidance of double taxation agreement the two countries would cooperate with each other on taxation and other financial matters. Natalegawa said efforts were on by the ASEAN countries to come out with a code of conduct for the South China Sea after the disappointment at the recent ASEAN summit in Phnom Penh, Cambodia, when they were unable to take further steps forward with respect to the code. Noting that change in dynamics is inherent, the Indonesian Foreign Minister said 'it is a fact of life. It is something that we must not fight over or try to deny' but added 'dynamics and such developments materialize in a way that it is at the same time conducive to region's peace and stability.' The two leaders also agreed to have regular interaction to identify challenges and take stock of the status of bilateral ties. Both sides signed the minutes of the meeting of the Joint Commission./end