The bilateral cooperation framework is needed to assure that the economic relations between the two countries would remain strong,"Jakarta (ANTARA News) - Indonesia and India are conducting pre- negotiations on an economic partnership covering trade, investment and other technical cooperation scheme within the framework of the Indonesia-India Comprehensive Economic Cooperation Agreement/II-CECA.
The pre-negotiation consultations were done at a biennial bilateral meeting between Indonesian Trade Minister Mari Elka Pangestu and her Indian counterpart Shri Anand Sharma here on Tuesday.
The director of international trade cooperation of the ministry of trade, Gusmardi Bustami, said in the consultation they discussed among others principles for the cooperation framework that would be made.
"They have not yet entered details. They are still discussing principles such as trade of goods, how to carry it out, which year of the HS (harmonized system) that would be used," he said.
He said the meeting would still be continued until a common agreement was reached regarding the cooperation principles they wish to use.
"I think there will be pre-negotiations again until a deal is reached. They have proposed another meeting in December," he said.
After the two sides agreed on basic principles would the schedule be determined for starting the negotiation.
Mari said the creation of an economic cooperation framework under the framework of II-CECA was aimed at strengthening and expanding trade, investment and other economic cooperation.
"The bilateral cooperation framework is needed to assure that the economic relations between the two countries would remain strong," Anand Sharma said.
In October 2005, the Indonesian and Indian governments agreed to set up an II-CECA.
The agreement was then followed up with a feasibility study by a Joint Study Group (JSG) for II-CECA.
In its recommendations JSG II-CECA among others states that the cooperation in trade of goods, service and investment is worth continuation through the establishment of a comprehensive economic cooperation agreement.
The cooperation is projected to be able to increase the intensity of trade and investment between the two countries.
The trade between Indonesia and India is big and tends to increase.
According to the National Statistics Agency (BPS) in 2010 the value of Indonesia`s exports to India reached US$9.91 billion and US$9.85 billion of it came from non-oil and gas trade.
From January to August 2011, the value of Indonesia`s non-oil and gas exports to India already reached US$9.05 billion up around 49 percent from the same period last year.
Indonesia`s imports meanwhile rose and reached US$3.29 billion in 2010.
From January to August 2011 the country`s imports were valued at US$2.7 billion.
Indonesia among others exports crude palm oil, coal, pulp and other industrial chemical substances to India while India exports cotton, corn, sugar, cell phones and auto parts to Indonesia.(*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
