India keen to scale up economic ties with Indonesia: Sharma

Jakarata, Oct 4 ( PTI) With an eye on mineral resources
like coal, India is scaling up its economic ties with
Indonesia and the move is being helped by big Indian business
houses like the Tatas, Anil Dhirubhai Ambani Group and Aditya
Birla Group.
Indian Commerce and Industry Minister Anand Sharma is
leading a big CII delegation, headed by well-known
industrialist Vijay R Kirloskar, to develop new linkages with
the Indonesian government and industry.
The initiatives include negotiations for a comprehensive
free trade agreement aimed at not only liberalising existing
bilateral trade of USD 14 billion and taking it up to USD 25
billion by 2015, but securing access for Indian services like
education and health in the 250 million people Indonesian
market.
"India and Indonesia can do much more in the changing
world," Sharma said at a reception hosted by the
India-Indonesian Chamber of Commerce on Monday night.
He said while Indian business houses have invested US 20
billion in sectors like steel, power and coal, Indonesia
should allow access to Indian pharmaceuticals, which have made
a name for themselves in the world market.
Indian drug companies are the second largest receivers of
US Food and Drug Administration approvals.
"The Indian generic companies changed the global
discourse" and broke the stranglehold of MNCs in the world
pharma market, he said.
When it comes to tapping natural resources and the
growing market in Indonesia, Indian firms are not lagging
behind their competitors. Tata Power has picked up a 30 per
cent strategic stake in PT Kaltim Prima Coal and PT Arutmin
Indonesia and established coal linkages for its Mundra power
project in Gujarat.
Likewise, the Anil Dhirubhai Ambani Group has bought coal
assets and is developing the same. The Adanis have also done
similar deals in the coal business. Indonesia has emerged as
the world's foremost producer and exporter of thermal coal,
ahead of Australia, an official said.
"In two-three years, Indonesia will contribute 150
million tonnes of coal to India," said Biren Nanda, India's
Ambassador to Indonesia.
In 2010, coal shipments from Indonesia to India stood at
about 50 million tonnes, which is expected to rise to 70
million tonnes in the current year.
Nanda, who has been in Jakarta for three-and-a-half
years, said economic ties between the two countries have seen
a sea change in the last few years. Government-to-government
talks have been scaled up to ministerial levels from lower
level official talks earlier.
With respect to Indian firms doing business in Indonesia,
the TVS Group has set up a two-wheeler manufacturing plant,
which it wants to leverage for the entire South-East Asian
market, a senior group official said.
Kirloskar, who is Chairman and Managing Director of
Kirloskar Electric Company, said Indian firms have unique
advantages vis-a-vis the competition from China in markets
like Indonesia.
"The Chinese cannot do everything. The Chinese have not
developed the Nano car, we have developed it," he said. PTI PC
MNS