Kadin Aims for $120 Billion Indonesia-India Trade, Securing a Surplus for Indonesia

NEW DELHI, investortrust.id – The Indonesian Chamber of Commerce and Industry, or Kadin, has set an ambitious target to boost trade between Indonesia and India to $120 billion over the next decade, up from the current $24 billion. Together with the government, Kadin aims to maintain a trade surplus in favor of Indonesia.

“Our trade with India currently stands at around $24.1 billion (January–November 2024). We export $18.9 billion to India, while importing $5.2 billion. This leaves us with a surplus of approximately $13.7 billion,” said Anindya Novyan Bakrie, Chairman of Kadin Indonesia, during President Prabowo Subianto’s state visit to New Delhi on Monday, Jan 27, 2025.

India’s G20 Sherpa, Amitabh Kant, expressed India's intention to double trade and investment with Indonesia within five years, highlighting strong mutual economic priorities.

“You now have a dynamic and visionary president who believes in strengthening economic and trade relations with India. Our Prime Minister strongly believes that India must deepen its economic ties with Indonesia,” Amitabh said on Saturday, Jan 25, 2025.

According to Anindya Bakrie, Indonesian entrepreneurs must strive to maintain the trade surplus with India. Sustaining the surplus contributes to strengthening the nation's economic fundamentals, supporting economic growth, preserving foreign reserves, and stabilizing the rupiah exchange rate.

“Those enjoying the surplus are naturally happy, while others may have differing opinions. The key is that, from Kadin's perspective, trade between Indonesia and India should continue growing to $50 billion, or even $120 billion, within the next decade,” he remarked.

Strengthening Bilateral Collaboration

Anindya emphasized the importance of sustaining Indonesia’s trade surplus with India to support national economic fundamentals, foreign reserves, and currency stability. He stressed that achieving this target would require enhanced competitiveness and improved regulations.

“All stakeholders have responsibilities. It’s not just about addressing tariff barriers but also non-tariff barriers such as quotas and permits. These must be carefully managed,” he noted.

To bolster trade and investment, Kadin will continue collaborating with the Confederation of Indian Industry (CII) and Indian companies. During the India-Indonesia CEO Forum in New Delhi, co-chaired by Anindya and CII Chairman Ajay S. Shriram, 50 CEOs discussed potential synergies in six key sectors: healthcare, food and agriculture, manufacturing, energy, technology, and affordable housing.

The forum resulted in a joint statement advocating stronger bilateral business cooperation, which was handed over to President Prabowo and Indian Prime Minister Narendra Modi by the respective foreign ministers.

Success of the India Visit

Anindya declared the visit a success, fostering closer ties between the two governments and creating a conducive environment for trade and investment. The participation of regional Kadin representatives also reflected Kadin’s commitment to inclusivity, ensuring economic development benefits local businesses.

Anindya said India and Indonesia share similar priorities, focusing on equitable growth beyond major cities, which would strengthen the two countries partnership in advancing regional economic empowerment. 

Anindya noted that the visit further strengthened the solid relationship between President Prabowo Subianto and Prime Minister Narendra Modi, fostering a favorable climate for bilateral trade and investment.

Additionally, the meeting between 25 CEOs from Indonesia and 25 CEOs from India during the India-Indonesia CEO Forum resulted in productive collaboration. “We agreed to focus on partnerships in sectors such as healthcare, food and agriculture, manufacturing, energy, technology, and affordable housing,” he stated.

Inclusivity in Economic Programs

Anindya highlighted the importance of including regional entrepreneurs in national economic initiatives, reflecting Kadin’s commitment to equitable growth. He emphasized that the delegation accompanying President Prabowo’s visit to India was not limited to central Kadin officials but also included representatives from regional Kadin chapters.

“Those present here are not just from Kadin Central but also from the regions. They aren’t here merely as spectators; they are deeply focused on collaboration. Our colleagues visited dairy factories, motorcycle plants, food estates, and hospitals,” Anindya explained.

He further drew parallels between the economic strategies of India and Indonesia, noting that both nations prioritize equitable growth beyond their capital cities. “India has 28 states, and Indonesia has 38 provinces. In India, economic growth isn’t confined to New Delhi or Mumbai—it is evident everywhere,” he said.

According to Anindya, India’s focus on regional empowerment aligns with Indonesia’s approach. “Just like Indonesia, India’s economic growth program is centered on regional empowerment. Programs like Free Nutritious Meals (MBG), building three million affordable homes annually, and achieving self-sufficiency in food and energy are designed to strengthen regional economies,” he concluded.