India, Indonesia has huge potential for expanding trade in Agri, Auto, IT and Pharma Sectors: Piyush Goyal

New Delhi, July 10: Raising concerns about India’s trade deficit with Indonesia which stood at USD 10.57 billion in India’s trade deficit with Indonesia during 2018-19, Minister of Commerce & Industry, Piyush Goyal, held a bilateral meeting with Indonesian Minister of Trade, Enggartiasto Lukita. The meeting took place on the sidelines of the Troika Meeting with ASEAN Trade Ministers.

 

Goyal said that there is considerable potential for expanding trade in agricultural, automobiles, engineering products, IT, pharmaceuticals, biotechnology, and healthcare sectors. With a bilateral trade of USD 21.13 billion in 2018-19, Indonesia has emerged as the second largest trading partner of India in the ASEAN region after Singapore.

Piyush Goyal highlighted India’s concern on the import quota restrictions faced by Indian auto and auto component industries in Indonesia on completely built-up units (CBU) and tyres. These restricted import quota prescribed by Indonesia for Indian vehicles in CBU condition has adversely impacted Indian exports. Long lead time is taken for regulatory certification for new vehicles also affects the launch of new products.

Minister Goyal also requested the Indonesian side to allow Indian Origin Frozen Halal Buffalo Meet (FHBM) free and directly to importers of Indonesia through various important ports, without quotas and restrictions; this was assured by the Indonesian side.

 

Goyal reiterated the potential for enhanced cooperation on health and pharma sector between India and Indonesia.

The Commerce & Industry Minister also requested the Indonesian side for more market access for India’s agricultural products like musk melon, bitter gourd, grapes, pumpkin, and milk products, which is pending with Indonesia. He further requested his Indonesian counterpart to grant Country recognition to India for export of agricultural products under the new Fresh Food of Plant Origin (FFPO) regulation of Indonesia. Indonesia’s new Fresh Food of Plant Origin (FFPO) regulation introduced from February 2016 is a technical barrier which restricts exports from India.

The Indonesian side also assured India that it will facilitate the sourcing of sugar from India by reducing tariffs and regularizing standards as per India’s requirement.

The Indonesian side requested for parity on duty with Malaysian exports of refined palm oil with India where it is currently suffering 5% disadvantage. Commerce and Industry Minister assured that he will take up this issue with the concerned Ministry.

Piyush Goyal said that India is looking forward to enhanced bilateral engagement with Indonesia and requested Indonesia for holding the next India Indonesia Biennial Trade Ministers’ Forum Meeting (BTMF) at Jakarta at the earliest.