In what would be a big boost to the country?s ?look east policy?, the government is looking forward to signing of deals in infrastructure, manufacturing and services, besides one on extradition, when Indonesian President Susilo Bamgbang Yudhoyono lands in India on Monday.
On his three-day visit, the Indonesian president will be accompanied by several ministers, senior officials and a 140-member delegation to explore the potential for investments by Indonesian firms in India. The visiting leader will be the chief guest during the Republic Day parade, and this would be his second visit to the country since 2005.
?Close relations with Indonesia is a key component of our ‘look east policy’,? Vishnu Prakash, MEA spokesman, said. He said bilateral trade between the countries has tripled in the last five years to touch $11.8 billion in 2010.
Indonesia is India?s third largest trading partner in the Association of Southeast Asian Nations (Asean) and bilateral trade is targeted at $25 billion by 2015.
According to Arun Kumar Goyal, joint secretary (south), MEA, ?A pact on an annual meeting of trade ministers will be among agreements that will be inked after Prime Minister Manmohan Singh holds talks with the visiting Indonesian president on Tuesday. Expanding cooperation in the area of maritime security through enhanced naval patrolling will be among issues on the table.?
?Of particular interest to us are supplies of coal. Indonesia has very high grade of coal spread all across where Indian steel plants normally source from. So, major agreements in the field of sourcing or investing in coal mines in Indonesia will see the light of the day,? Goyal said.
Yudhoyono is scheduled to attend a business summit jointly organised by Ficci and other industry bodies in Delhi on Tuesday.
Five major Indian business houses, including Tata and Adag, have made investment commitments in Indonesia worth $20 billion to be undertaken this year. They will add to the ventures by other companies like Essar and Jindal that are already operating in Indonesia.
So far, Indorama, a textile group, and Harmony Soap are among the few Indonesian brands operating in India while Mayora is setting up a food processing unit near Chennai. A dozen ministers will be part of the presidential entourage.
India could also commit investment in Indonesia?s palm oil, food processing, rail and port construction. The foreign direct investment inflow from Indonesia has been in non-conventional energy, construction, information and broadcasting and electrical equipment.
The leaders of the two sides are also likely to formally begin negotiations for a Comprehensive Economic Cooperation Agreement (Ceca) next week. Indonesia has consistently backed a bigger role for India in the Association of Southeast Asian Nations (Asean) and in the East Asia summit.