Indian businesses are looking to participate in various sectors within the infrastructure and health industries in Indonesia, as investment from India to Indonesia has been growing in recent years, an ambassador has said.
Indian Ambassador to Indonesia Pradeep Kumar Rawat said the two countries were recognized as emerging large economies globally and had similar challenges and opportunities, with both having an infrastructure gap.
On the sidelines of the second India-Indonesia Infrastructure Forum (IIIF) in Jakarta recently, Rawat told The Jakarta Post that Indian investors were interested in roadwork, urban railways, oil and gas, airports and the health industry.
With Jakarta’s newly launched MRT, for example, Indian companies could share their expertise as India had built the cheapest metro projects in the world with highly competitive fares.
The South Asian country is among the largest economies in the world and third-biggest in Asia after China and Japan. However, its presence in Indonesia is not as big as its presence in China and Japan.
Data from the Investment Coordinating Board (BKPM) show that India’s investment in Indonesia amounted to $82.12 million in 2018, far lower than the 2017 figure of $286.6 million.
Between 2014 and 2018, the country’s investment in Indonesia totaled $518 million. In this same period, the top five foreign investors in Indonesia, including in infrastructure building, were all from East and Southeast Asia, such as Singapore, Japan and China.
BKPM deputy chairman for investment planning Ikmal Lukman said the majority of India’s investments were still in wood products, trade businesses, food manufacturing and textiles.
“However, most of the investments are far too concentrated on Java Island, so we encourage [Indian] investors to invest outside of Java because there is a lot of potential for development elsewhere,” Ikmal said in the forum.
Private-backed Confederation of Indian Industry (CII) stated its plan to open an overseas office in Jakarta in May amid a growing interest among its members to partner with Indonesia.
(source: The Jakarta Post)