I

ndonesia expects to sign business contracts and an investment commitment worth more than US$ 15 billion from the Indian government and companies during the visit of President Susilo Bambang Yudhoyono to the country next week.

Coordinating Economics Minister Hatta Rajasa said Thursday that there would be more than 15 agreements and contracts for signing during Yudhoyono’s visit to the Indian capital from Monday to Wednesday next week.

“Among the deals are the South Sumatra train projects worth up to $2 billion and other infrastructure projects to grow several regions in the country. We’re targeting a total $15 billion value in potential agreements,” he told reporters at his office in Jakarta.

President Susilo Bambang Yudhoyono will visit India at the invitation of Indian President Pratibha Devisingh Patil to further strengthen the two country’s economic cooperation.

“There will be a business gathering between Indonesia and India’s chambers of commerce, and India’s president will also give a speech there,” he added.

Industry Ministry Mohamad Suleman Hidayat said that the business-to-business contracts would cover a number of infrastructure and power plant projects, while the government-to-government agreements would cover cooperation in the development of fertilizer and petrochemical plants.

“Through the government-to-government agreement, Indonesia’s Industry Ministry and India’s Chemicals and Fertilizers Ministry plan to establish a coal gasification-based fertilizer industry,” he said, adding that the project could be worth around $1 billion.

Hidayat added that there would also be a $1 billion government business deal on iron sand between the Industry Ministry and India’s Primax.

“There will be a business gathering between Indonesia and India’s chambers of commerce, and India’s president will also give a speech there,”

“The deal will be for the processing of iron sand into titanium and uranium, so that the country’s industries will no longer need to export raw materials.”

Hidayat expected the two Industry Ministry-related projects — on fertilizer and iron sand — could be realized soon.

India and Indonesia are among the darlings of the emerging markets, attracting foreign investors with sound economic fundamentals and high returns in two of the world’s most populous countries.

Both countries are members of BRICI (Brazil, Russia, India, China, Indonesia) five major emerging markets that are expected to control the world’s economy by 2050. “To achieve faster economic growth, both India and Indonesia will need to boost infrastructure projects. Therefore, these deals will help the two countries achieve their targets,” Hidayat said.

Indonesia’s economy was expected to grow by 6 percent in 2010 and 6.4 percent this year, while the economic growth of Asia’s third largest economy was sought to grow by 7.4 percent in 2010 and to above 8 percent this year.

— JP/Esther Samboh