India-Indonesia Chamber of Commerce Relaunched: Strengthening Strategic Business Partnerships
Karnataka News
The Embassy of India in Jakarta, in collaboration with the India-Indonesia Chamber of Commerce (IndCham), hosted a highly anticipated relaunch ceremony last week, celebrating a new era of business collaboration between India and Indonesia. More than 150 people actively participated in the event representatives of leading Indian and Indonesian corporations, including prominent companies such as Sinarmas, APR, BioFarma, Indika Energy, Adani, Tata Power, TCS, Thermax, Artemis Hospital, TVS, Vistara, Air India, and L&T, alongside members of the diaspora, startups, banks, and global multinational companies.
The relaunch was presided over by India’s Ambassador to Indonesia, Sandeep Chakravorty, with critical remarks from Arsjad Rasjid, President Director of Indika Energy and KADIN Chairman, as well as leadership from the Confederation of Indian Industry (CII) and the Governing Council of IndCham. In a video message from the Paris Olympics, Rasjid emphasized the strong historical and modern-day bonds between India and Indonesia, who share a Comprehensive Strategic Partnership and are aligned on similar economic trajectories. With a $5 trillion combined GDP and a population of 1.7 billion, he highlighted that India and Indonesia are positioned to be the new epicenter of global economic growth.
The relaunch signals a renewed commitment to fostering economic ties, supporting new and existing businesses, and paving the way for deeper engagement and shared growth between the two nations.
“As we celebrate 75 Years of our diplomatic relations with several cultural, economic and political exchanges planned in collaboration, the time is right to restart and activate this business chamber.”
He further noted that with Indonesia’s new government set to take office at the end of 2024, the role of the private sector will be critical in achieving the ambitious 8% growth target over the next five years. This growth plan strongly emphasizes people-centric policies in areas like human development, food security, technology and skill development, healthcare, and downstream industry for export expansion. He expressed optimism that IndCham’s future activities and strengthened business collaborations would contribute meaningfully to these goals.
The relaunch marks a timely revival of the India-Indonesia Chamber of Commerce, originally established in 1977 but largely inactive during the pandemic. The past decade has seen significant growth in the economic partnership between India and Indonesia, making the Chamber’s role more relevant than ever. As ancient maritime neighbors and modern Comprehensive Strategic Partners, India, and Indonesia are united by shared aspirations as large, emerging economies with vibrant democracies and growing populations. Both nations prioritize policies like Industrialization and Ease of Doing Business, embodied in initiatives like Atmanirbhar Bharat and Make in India for India, and downstream industry development in Indonesia, aligning with their long-term visions: India’s Amrit Kaal 2047 and Indonesia Emas 2045.
The two nations’ bilateral trade reached USD 38.8 billion in 2022, establishing Indonesia as India’s largest trading partner in ASEAN. Together, they aim to reach USD 50 billion by 2025. India ranks Indonesia’s 14th largest investor, with 80 Indian companies operating there. Additionally, around 300 businesses run by the Indian diaspora and thousands of professionals, including startups, contribute to Indonesia’s growth. Recently, air connectivity has been strengthened, with three direct flights now connecting the two nations, including routes between Jakarta and Delhi.
Ambassador Chakravorty highlighted that the potential for deeper economic engagement remains vast, supported by a strong foundation of political and cultural ties. He encouraged exploring new avenues for cooperation in areas such as the ocean economy, healthcare, tourism, energy transition, AI, and even space exploration. Achieving these ambitious goals requires a supportive business network that facilitates collaboration and ease of business.
He hoped that the reenergized IndCham, with its inclusive membership, structured activities, and expanded mandate, would rise to this challenge. He invited the business community to join the renewed IndCham, actively participate, and contribute to a vibrant and impactful India-Indonesia business partnership for the future.
The ceremony featured several vital highlights: a presentation outlining the goals, structure, and membership opportunities within the revitalized IndCham; an engaging online talk by Mr. Sanjeev Sanyal, a respected Indian economist, historian, and member of the Prime Minister of India’s Economic Advisory Council; and an insightful presentation on the Personal Data Protection Law by legal experts from Dentons, one of the world’s leading law firms.
Economist Sanjeev Sanyal emphasized that India and Indonesia, as two major emerging markets with vibrant democracies and an unmatched demographic dividend, are well-positioned to drive the future of Asia in the Indo-Pacific region. With high levels of domestic consumption and rapid adoption of technology and innovation, both nations are poised to complement each other’s growth and aid in promoting regional stability and prosperity.
“As we navigate a multipolar world fraught with competition for resources, it’s imperative for India and Indonesia to collaborate on sustainable growth that would shape a 21st-century narrative for Asia, one that reflects our aspirations and priorities.”
He asserted that it is time to restore the Indian Ocean to its original status as a primary global economic zone rather than merely a “trade route” relegated to a Western-led economic world order. He emphasized that India and Indonesia have the potential to collaboratively reshape this new global narrative.
Fabian Pascoal, Senior and Founding Partner at Dentons, and his associate Bpk Mika Kriyasa highlighted the critical importance of data privacy. They presented an overview of Indonesia’s Personal Data Protection Law 2022, which will come into full effect this October, and discussed how businesses must adapt to its key provisions.
Looking ahead, IndCham plans to organize several annual activities focused on priority areas such as trade and investment facilitation, energy transition, healthcare, innovation and startups, education and skill enhancement, and digitalization.