Bakrie Revealed Recommendations for Indonesia-India Trade, Investment Cooperation

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Sabtu, 1 Februari 2025 - 12:08 WIB

New Delhi, VIVA – Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, revealed several challenges and proposed solutions for strengthening agricultural cooperation between Indonesia and India.

The first challenge, he noted, is India's complex agricultural regulations. Governed by a combination of central and state-level laws, the regulatory framework in India remains fragmented.

"Policies such as restrictions on foreign investment in multi-brand retail and the Minimum Support Price (MSP) for certain crops can complicate market entry and operational planning for foreign companies," Bakrie said on Tuesday (Jan 28).

Another big issue is inefficiencies in India’s logistics and supply chain. Inadequate cold storage infrastructure, high transportation costs, and significant post-harvest losses pose significant obstacles.

According to Bakrie, these challenges can impact the profitability of foreign companies looking to trade or process agricultural products in India.

Furthermore, India imposes high tariffs on certain imported food products, along with stringent non-tariff barriers such as labeling and certification requirements.

"These factors make it difficult for Indonesian companies to compete effectively in the Indian market," he remarked.

To address these challenges, Kadin Indonesia has put forward several recommendations.

First, Bakrie emphasized the need for India to simplify its regulatory processes and strengthen bilateral agreements.

He proposed the establishment of an Indonesia-India agribusiness forum to navigate regulatory complexities and facilitate dialogue between governments and businesses.

"This forum could help negotiate trade facilitation agreements, reduce tariffs, and create a more transparent regulatory environment for food and agricultural investments," Bakrie stated.

He also encouraged India to invest in infrastructure and technology collaboration. By fostering partnerships between Indonesian and Indian companies, both nations could invest in cold storage facilities, supply chain logistics, and agricultural processing units.

Additionally, he suggested leveraging public-private partnerships (PPPs) to develop sustainable and efficient systems that benefit both markets.

"They should also target high-value segments and niche markets. Focusing on fast-growing areas such as organic food, specialty oils, and processed food products aligns with India's increasing consumer demand," he said.

Bakrie further pointed out that Indonesian companies could explore opportunities to supply sustainable palm oil products and tap into the premium agricultural export market.