RI to Embark on Opportunities for Industrial Cooperation with IORA

Jakarta, InfoPublik - Indonesia will explore opportunities for industrial cooperation including shipping and shipping equipment, marine products processing, automotive components, petrochemical and coal gasification, as well as downstream agro products with member states of Indian Ocean Rim Association (IORA).

"We are boosting industrial investment because it is labor-intensive sector with export orientation and import substitution. To expand access to IORA member states' market, which are mostly non-traditional markets, can be conducted through the framework of bilateral supply chain cooperation, "said Industry Minister Airlangga Hartanto, after attending Business Summit in Jakarta Monday (3/6).

In addition, Industry Minister stated that we need to initiate the implementation of business matching with IORA member states as well as to optimize the role of Indonesian Embassies in promoting the national industry's capacity and market potential for both parties.

“Cooperation intensification such as trainings for industrial capacity building had been conducted with Mozambique and Seychelles in the small and medium industrial sectors,” he explained.

He said that the countries around Indian Ocean has prospective economic potential. With a population of 2.7 billion people, this region represents 70 percent of the world trade, and stores about 55 percent of world oil reserves , 40 percent of world gas reserves and produces about 1/3 of the world production of tuna as well as store a variety of mineral deposits with high economic value.

“With the various potentials, one of the measures to be taken by Indonesia is developing maritime infrastructure and connectivity as well as shipping and maritime industries,” he explained.

with Nawacita- Indonesia's nine development agenda- which sees to realize the vision as world maritime axis, Indonesia is seeking its way to become an influential country both economically and politically between the two oceans of Indian and Pacific.

"Indonesia will maintain and manage marine resources with a focus on building marine food sovereignty through the development of fishing industry," he said

IORA is the largest interstate cooperation forum in the Indian Ocean established in 1997. IORA comprises 21 countries including Australia, South Africa, Bangladesh, Comoros, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Seychelles, Singapore, Somalia, Sri Lanka, Tanzania, Thailand, the United Arab Emirates and Yemen. IORA has 7 dialog partners namely the United States of America, the United Kingdom, Japan, German, Egypt, China and France.
Four IORA member states (South Africa, Australia, India and Indonesia) and six dialog partners (US, China, German, UK, Japan and France) are members of G20. It proves how strategic IORA is in global economy.

The IORA Summit 2017 is one of the Indonesia’s strategic ideas and initiatives as IORA Chair for the period of 2015-2017. The summit is convened under the theme “Strengthening Maritime Cooperation for a Peaceful, Stable and Prosperous Indian Ocean”.

For information, the total value of trade between Indonesia and IORA member states reached USD 82.57 billion. Meanwhile, in 2015 IORA intra-regional trade reached USD 777 billion, increased 300 percent compared to that of 1994 at USD 233 billion. Not only that, IORA also contributed surplus for Indonesia trade.

Source: Antara/Translator: Ugi