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Aceh-Andaman connection expected to boost Indonesia-India trade
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View of Iboih beach in Sabang regency, Aceh. Indonesia and India plan to improve connectivity between their neighboring regions of Aceh on Indonesia's side and India's Andaman and Nicobar Islands. (Shutterstock/Sony Herdiana)
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o:p>Indonesia and India plan to improve connectivity between Indonesia’s province of Aceh and India’s islands of Andaman and Nicobar to unlock business potential in an effort to increase bilateral trade to US$50 billion by 2025.
“The proximity of Andaman and Nicobar Islands to Aceh is a good opportunity for business partnerships. We can provide goods [to Andaman and Nicobar] more efficiently than for them to wait for a shipment from India,” said Aceh acting governor Nova Iriansyah during the India-Indonesia Investment & Business Forum in Jakarta on Monday.
He said India’s islands needed construction materials for their growing tourism sector, and Aceh could export cement and deploy construction workers.
Nova went on to say that India was eyeing to build a medium-scale hospital in Sabang, located in the northernmost part of Aceh, about 166 kilometers from Andaman and Nicobar Islands, which is about 1,200 km from Chennai in mainland India.
Nova said the two countries were currently in talks about harmonizing regulations to ease investments and bring in business players from each country to discuss other areas of partnership, such as tourism.
According to data from the Sabang Management and Development Agency (BPKS), there has been a steady increase in the number of yachts entering Sabang from 63 in 2016 to 90 in 2018.
The agency’s business and investment development director, Teuku Ardiansyah, said that with a tourism partnership with Andaman and Nicobar, the island’s 500,000 tourists could extend their journey to Sabang.
