With a combined GDP of approx $ 8.3 trillion and almost 60% of populations below the age of 35, India and Indonesia are sensing a vast potential for bilateral trade and cooperation
by Sarjana Sharma
With a combined GDP of approximately $ 8.3 trillion and almost 60% of populations below the age of 35, India and Indonesia are sensing a vast potential for bilateral trade and cooperation.
Addressing a special media interaction Monday, Indonesian Ambassador to India Ina H. Krishnamurthy emphasised on the growing momentum in India-Indonesia economic ties and invited Indian industrialists, manufacturers, producers, and traders to actively participate in the 40th edition of the Trade Expo Indonesia in Jakarta from October 15 to 19.
Indonesia’s key exports to India include palm oil, coal, cocoa products, coffee, rubber, and chemical goods.
India, meanwhile, exports pharmaceuticals, machinery, raw sugar, wheat, rice, chili, and peanuts to Indonesia.
As many as 80 Indian entrepreneurs, representing top industry associations such as FICCI, PHDCCI, ASSOCHAM, and CII, also participated in the discussions exploring bilateral trade opportunities. The talks were led by Indonesia’s Trade Attaché Mohammad Iqbal Djamal, Economic Affairs Minister Irwin Mohammad Akbar, and consular representatives from Chennai and Mumbai, including Nugroho, Prio Pratomo, and Eko Santoso Junar.
Ambassador Krishnamurthy also noted the progress made under the bilateral currency exchange agreement signed in 2024, which now allows trade settlements in Indian Rupees and Indonesian Rupiah, easing cross-border transactions.
She highlighted that Indonesia’s private financial institution Maybank is already operational in India, offering bilateral currency exchange services, and is playing a role in positioning Indonesia as a strong ASEAN trade partner.
Citing the World Economic Forum’s recent report, the Ambassador pointed out that the global growth rate for 2025 is projected at 2.3%, the weakest in 17 years. However, if leading economies ease trade tensions, this figure could improve.
Despite global slowdown trends, Indonesia’s economy remains stable, recording a 5.2% growth so far in 2025, driven by rising consumer spending, she said, adding that India’s economy too remains robust and rapidly advancing, offering scope for building a mutually strong economic bloc.
She also underlined the growing global demand for steel foil and gold, and predicted a booming digital economy, expected to reach $ 150 billion by the end of 2025.
The Jakarta expo will open new doors for global collaboration, she added
The Ambassador also acknowledged that the lack of direct air connectivity between Delhi and Jakarta remains a significant bottleneck in expanding trade. The matter is under governmental review, she added.
The Indonesian Special Economic Delegation provided further details about the upcoming Trade Expo and encouraged Indian businesses to explore long-term partnerships, citing Indonesia’s flexible trade strategies as attractive propositions for Indian stakeholders.
