Author : Thee Kian Wie
Abstract :
The Indonesia-India Comprehensive Economic Cooperation Agreement (II-CECA) reflects the strong intention of the Governments of Indonesia and India to improve and widen their trading and investment links, which should be of great economic benefit to both countries as well as improving business links. Because Indonesia and India are large, rapidly growing economies, they can both reap the benefits of their demographic dividend and because of their young population, improving and strengthening their economic relations will be to the benefit of both. Moreover, in April 2012, Indonesia and India celebrate 60 years since the establishment of diplomatic relations, and there is much reason to improve and broaden their bilateral economic as well as their social and cultural relations. Indonesia and India have also been growing rapidly after opening up and liberalising their economies, Indonesia since 1967 and India since 1991. These economic reforms have made both economies more competitive and outward-looking, and more able to take advantage of the great potential from closer economic relations between these two countries, relations that will also be underpinned by the long historical and cultural links between Indonesia and India and by the mutual appreciation that both countries are democratic, India since its independence and Indonesia since mid-1998.
Keywords: Indonesian-Indian Economic Relations, Bilateral Trade, Investment Relations