Indonesia has decided to import rice and sugar from India so as to advance bilateral trade between the two nations. India and Indonesia aim to increase their trade volume to $50 billion by 2025. Above all, trade deficit between the two countries will decrease substantially after this decision.
Reduction in Import Duty of Indonesian Palm Oil
The decision to import rice and sugar from India came after India reduced import duty on palm oil by 5% making it similar to import duty on palm oil imports from Malaysia and Indonesia. Earlier, India used to charge import duty of 50% on Indonesian and 45% on Malaysian palm oil imports. However, Import duties were less on Malaysia, owing to the Comprehensive Economic Cooperation Agreement (CECA) between Malaysia and India.
A Multi-Product Road Show was organised in collaboration with Indian Embassy and the Ministry of Trade of Government of Indonesia in Jakarta. To discuss exports of Bovine meat, Rice and Sugar from India to the South East Asia’s biggest nation. During the event Enggartiasto Lukita, Trade Minister of the Republic of Indonesia said, “India has given us an opportunity to increase our CPO exports, it is only fair to give India access to our market as well.”
In addition, this event was attended by a 40-member delegation led by APEDA, India, officials from the Ministry of Trade, Ministry of Agriculture, Director General of Foreign Trade of Indonesian Ministry, Indonesian meat importers associations, Indonesian Chamber of Commerce and Industry (KADIN), State Procurement agencies and Indonesian Refined Sugar Association.
Indonesia to Prioritize Import of Indian Agricultural Products
Indonesia will ‘prioritize’ Indian products to import rice, sugar or meat rather than increasing its import from the current volume. According to Indian ambassador to Indonesia, “the trade between the two countries from 2018-2019 accounts to $21.11 billion and it would not be difficult to reach the target of $50 billion until 2025”.
India is largest palm oil market for Indonesia with a share of about 20% of its oil exports. The bilateral trade will enable Indonesia to increase its oil export to India.