Indonesia and India will strengthen their trade relations with the trade target of the two countries reaching US$50 billion by 2025. Deputy Minister of Trade Jerry Sambuaga said that India has long been an important trading partner for Indonesia. The two countries are committed to jointly increasing bilateral trade and investment. This was conveyed at a meeting with a number of Indian business actors in Indonesia which was held at The Langham Hotel, Jakarta some time ago. "It is hoped that both countries can undergo economic recovery and become stronger," said Jerry in a written statement, Monday (16/5/2022).
According to data from the Central Statistics Agency (BPS), Indonesia's exports to India in 2021 will record a value of US$ 13.2 billion, an increase of 27.85 percent compared to the previous year. Its main export products are coal, palm oil, iron alloys, industrial monocarboxylic fatty acids, and copper ore.
Meanwhile, Indonesia's main imports from India are semi-finished iron products, sugar cane or beets, peanuts, frozen beef, and iron alloys. The Vice Minister of Trade explained that India is the 26th source of foreign direct investment (FDI) for Indonesia.
"India's investment realization in Indonesia was recorded at US$ 49.5 million spread over 465 projects. The three largest sectors include the textile industry, building land, industrial estates, and business activities; as well as trade and repairs," said the Vice Minister of Trade.
As is known, since May 13, 2022, India has officially banned its wheat exports. This is due to annual consumer price inflation which is approaching its highest level for 8 years in Bollywood. India's inflation was recorded at 7.79 percent in April 2022 and retail food inflation soared to 8.38 percent.
India's wheat imports alone are only about 2.8 percent of Indonesia's total wheat imports. In 2021, Indonesia imports 184.6 million tons, with a value of US$ 60 million, while in 2022, BPS recorded wheat imports from India reached 98.18 million tons as of March, with a value of US$ 3.9 million.
