Improving investment climate has made Indonesia natural partner of India: Hamid Ansari

Emphasising the need to enhance the economic and strategic cooperation with countries of Southeast Asia, Vice-President Hamid Ansari on Tuesday said that improving investment climate and series of economic reforms undertaken by Indonesia has made it a natural partner of India.

Speaking at India-Indonesia Business Forum in Jakarta, the Vice-President said that the bilateral trade and investments between India and Indonesia have not realized its full potential despite cordial political relations between the two countries.

"Realizing the need for enhancing the economic and strategic cooperation with countries in Southeast Asia, India launched the 'Look East Policy' in 1991. Last year, the Prime Minister of India envisaged a more proactive 'Act East Policy' aimed at rapidly scaling up our cooperation with ASEAN member countries in crucial areas," Vice-President Ansari said.

"With vibrant democratic rule, Indonesia's vast economic potential is ready to take off. The large economy, an improving investment climate, a young and technically trained work force, and abundant natural resources make Indonesia a natural partner for India," he added.

The Vice-President also hailed economic reform policies of the Indonesian government which involve major deregulation measures aimed at reviving economic growth.

"I am sure that these measures will create further opportunities for collaboration between Indian and Indonesian businesses," he said.

Stating that both India and Indonesia are making attempts to broaden base of their economies, Vice-President Ansari said, "they should harness the complementarities in attracting investments which is a key factor for a positive economic growth."

"There is a considerable potential for expanding trade in the areas of automotive components, automobiles, engineering products, IT, pharmaceuticals, bio-technology and healthcare sectors," he added.

Vice President Ansari arrived here for his five-day two-nation official visit to Indonesia and Brunei on Sunday

Indonesia is the first stopover for the Vice President, who is there at the invitation of his Indonesian counterpart Jusuf Kalla.