Why Indonesia? - Eepcindee.com

Why Indonesia
Indonesia, the largest economy in Southeast Asia, is one of
the most important emerging markets in the world. It is
one of Southeast Asia's most vibrant economies, a result of
decades of industrial growth and political stability.
Indonesia’s economy and imports
•
Indonesia is the world’s third largest
auto market and the largest in
ASEAN
• The country’s imports expanded by
36.6% to US$116 billion in 2008.
•
The major items of import are:
Machinery and Electrical equipment:
26% of total import (2008); Base Metals:
11.9% of total import (2008);
Machinery: US$8.1 billion in 2007;
Metal cutting and forming machines:
US$292 million in 2007; Tooling, tool
and work holding devices and machine
tool accessories: US$162 million in 2007
Trade
• Indonesia is India's third largest trading
partner in the ASEAN
• The second largest export destination
in ASEAN
• The bilateral trade target in the next
five years is US$20 billion
• Engineering export is 29.45% of India’s
total export to Indonesia
•
Indian investments in Indonesia
• US$2 billion Indian investments
Over 20 Indian manufacturing joint
ventures. The major Indian engineering
companies with joint ventures in
Indonesia are: Bajaj Auto Indonesia,
Bharat Heavy Electricals Ltd. (BHEL),
Essar Indonesia, Ispat, Indo, Jaykay
Files Indonesia, Jindal Stainless
Indonesia, Minda Asean Automotive,
Punj Lloyd Indonesia, TVS Motor Co.
Indonesia, Tata Power Company Ltd
And finally. . .
• The bilateral agreement (FTA)
between India and ASEAN countries
provides novel opportunities to Indian
exporters
• The agreement between India and
Indonesia offers lower duty access to
3,099 engineering items from India
• 1,065 items would get zero duty access
with effect from 1 January 2010
• Import duty for another 536 items will
be down to zero in the coming years
For a list of the items covered under FTA,
please contact our offices or log on to the
link: (http://commerce.gov.in/trade/
Indonesia's%20schedule.pdf)