Indonesia has been increasingly finding a place among the most important emerging economy groupings such as MINT and Next Eleven. It is rich in natural resources and has been an important exporter of oil and coal. India, like other Asian countries, has followed the democratic process in Indonesia with great interest. Neelam Deo, director at Gateway House, comments on the significance of Indonesia’s presidential election for India.
Statement:
“The results of Indonesia’s presidential election were announced on 22 July 2014 in which Jakarta’s Governor, Joko Widodo, emerged as the victor after a full recount of votes. Similar to the Indian election, Widodo connected with voters on issues which affect the Indonesian people on a daily basis such as jobs and water supply, rather than abstract, grand promises of national glory.
Indonesia is the third largest democracy in the world, the largest Islamic nation, and economically significant in ASEAN with GDP growth at 5.8% in 2013. The leadership that has emerged from the presidential election must now focus on unleashing the country’s economic potential, without further environmental damage caused by extractive industries.
Indonesia is the second largest trading partner for India in ASEAN, with bilateral trade amounting to US$20 billion in 2012-2013. India is the largest buyer of crude palm oil from Indonesia, and exports petroleum products. Indian companies have significant investments in Indonesia in power, infrastructure and steel, among others.
In addition to expanding the presently modest trade ties, India’s new government must seek a closer strategic relationship with Indonesia. The country has recently acknowledged its maritime dispute with China and the timing is right for India to reach out to Asian partners that seek a better balance in Asia.”
For more information or interview requests, please contact Reetika Joshi at joshi.reetika@gatewayhouse.in.