Saturday, August 15, 2009
Indonesia, India Trade to Double To $20B In 5 Yrs-Min
Indonesian trade with India is expected to double to $20 billion within five years, boosted by the signing of a free-trade agreement between India and the Association of Southeast Asian Nations. The FTA would also lift Indonesian coal exports to India by trimming tariffs on coal to 0% from 10% currently, starting Jan. 1, 2013.
The FTA would also deliver tariff cuts on palm oil and refined palm oil - which currently tariffs of up to 90% and 80% respectively. They will be reduced to 40% and 35% by 2019.
Indonesia would also benefit from cuts to tariffs on minerals, ores, paper products and glass. The India-Asean agreement - signed in Bangkok Thursday - is due to come into effect Jan. 1, 2010 and will lift import tariffs on more than 80% of traded products between 2013 and 2016.
Trade between Indonesia and India had already swelled to $10 billion last year from $3.9 billion in 2005 - beating their forecast of reaching that level by two years.
Indonesian economic growth is expected to reach 4% to 4.5% this year, rising to 5% to 6% in 2010, led by growth in private consumption and government spending.