Indian to step up strategic ties with RI

Mon, 12/01/2008 11:10 AM  |  World

Prior to last week's deadly terrorist attacks in Mumbai and her meeting with President Susilo Bambang Yudhoyono on Monday in Indonesia, Indian President Pratibha Devisingh Patil, set aside time to answer questions sent by The Jakarta Post on relations between the two largest Asian democracies. Below are the excerpts:

Question: India is geographically not far from Indonesia and both countries have enjoyed excellent relations for many years. But neither country really feels they are neighbors, like Indonesia and Australia. What do you think is the main reason both countries have maintained a stable and strong relationship?

Answer: India and Indonesia have strong cultural, religious and linguistic ties dating back centuries. The modern relationship between the two countries grew out of their respective struggles for independence. The Indonesia-India relations in the early years of the 20th Century independence movement were fostered between towering figures who were to play leading roles in the new nations - Sukarno, Mohammad Hatta, Sutan Sjahrir and Nehru. This provided a strong foundation for our relationship in the 21st Century. Today, India and Indonesia share a common commitment to democracy, pluralism and unity in diversity. As we seek to realize the aspirations of our peoples, we face similar challenges and opportunities.

What is the main purpose of your visit to Indonesia?

My visit to Indonesia is a return visit because President Susilo Bambang Yudhoyono made an official trip to India in November 2005. During his stay, a joint declaration on establishing a strategic partnership was signed. My present visit is in pursuance of this partnership. I am confident that through our planned discussions we will be able to consolidate and reinforce the momentum of our bilateral ties.

Though trade between India and Indonesia is growing each year, the economic value is still less than US$10 billion. What measures are to be taken to boost the economic turnover?

The trade and economic aspect of our partnership provides a critical underpinning to the edifice of our relations. We are resolved to working together with the Indonesian Government and business circles to significantly enhance our bilateral trade and investment ties. Our trade volume in 2007 reached $6.5 billion. We are well on track to reaching a trade turnover of $10 billion by 2010. Indian companies are showing a renewed interest in making investments in Indonesia.

Recently, we have seen a new wave of Indian investments in Indonesia. But these investments do not appropriately reflect India's real economic potential. Do you think the present investment climate is sufficient enough to attract more Indian investments into Indonesia?

As I mentioned earlier, Indian companies are showing a renewed interest in making new investments in Indonesia. Today, we have significant investments in the textiles, steel, automotive, banking and resources sectors. We are working at the Government and industry level to progress our trade and investment relations further.

Could you explain the progress to date on the newly formed strategic partnership between India and Indonesia?

The joint declaration signed to establish a new strategic partnership was signed in November 2005 in New Delhi. During the June 2007 visit of the External Affairs Minister of India to co-chair the Joint Commission meeting, the action plan on implementing the partnership was finalized. We are activating the institutional mechanisms created through the joint commission process for implementing the goals and objectives of the new strategic partnership between the two countries.

Do you have any plan to sign a free trade agreement with Indonesia?

The India-ASEAN Free Trade in Goods Agreement has been concluded and is expected to be signed soon. India and Indonesia will both benefit from the facilitating environment created by this agreement. In addition, a joint study group has been established to examine the feasibility of a comprehensive economic cooperation agreement between India and Indonesia which is expected to submit its report soon.

How do you visualize the Indonesia-India bilateral relations over the next five years to shape up?

We are looking for a significant enhancement in our bilateral ties over the next five years in keeping with our commitment as strategic partners. This means we shall significantly upgrade our bilateral interaction through the exchange of high-level visits, security cooperation, cooperation in science and technology, culture and other areas. India and Indonesia are both large democracies which share many common interests. We are neighbors with a long history of cultural links. It is only appropriate that we develop strategic ties in an expeditious manner. This would not only benefit the two countries but also other countries of the region.

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