Indonesia and India to begin economic cooperation talks

Indonesia and India to begin economic cooperation talks

2011-01-21 10:16:00 GMT+7 (ICT)

JAKARTA, INDONESIA (BNO NEWS) -- With Indonesian President Susilo Bambang Yudhoyono's scheduled visit to India next week, the two countries are expected to begin talks in order to enter a Comprehensive Economic Cooperation Agreement (CECA), the Business Standard reported Thursday.

Deputy Minister in Indonesia's Coordinating Ministry for Economic Affairs Rizal Effendi Lukman told the paper that Yudhoyono, who will be the honorary guest at the Republic Day parade in the capital, along with Prime Minister Manmohan Singh is slated to jointly announce the commencement of talks for the CECA.

India has already established a Free Trade Agreement with the Association of South East Asian Nations (ASEAN), but a CECA with Indonesia could have a strong impact in their respective economies as both countries registered positive growth despite the recent recession.

In 2008, bilateral trade between India and Indonesia reached $10 billion, but a joint study group predicted that by 2020, India's exports to Indonesia could reach up to $7.8 billion, while exports from Indonesia to India were likely to reach $9.7 billion.

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