Jakarta Concord as IORA Historical Document

Jakarta, IORA - Jakarta concord became a historical document which initiated cooperation between countries bordering the Indian Ocean which stretch across the regions of East Africa, the Middle East, South Asia, Southeast Asia, and Australia.

"We believe that the Indian Ocean region has now become a key axis for world event," President Joko Widodo stated in a keynote address wen opening the Indian Ocean Rim Association (IORA) Leaders' Summit in Jakarta (3/7).

One of the important points of the Jakarta Concord which has been approved and supported by IORA heads of state/government and representatives of the 21 IORA member states is cooperation in the field of trade and investment.

In that regards, the document particularly points out an effort to encourage IORA region to intensify the flow of goods, services, investment, and technology, to stimulate economic growth.

The Indian Ocean region holds a strategic position as the lifeline of international transport since it carries half of the world's total container ships, one third of the world's bulk-cargo traffic, and two thirds of world's oil shipment.

However, it only covers 12 percent of the world market and 10 percent of global gross domestic product.

Other important points contained in the Jakarta Concord resulted in the IORA summit are exploring measures to improve the production capacity, competitiveness, and value addition; promoting public-private partnership in infrastructure development; strengthening the involvement of the private sector, in particular SMEs.

Those efforts are to be conducted through dialogue and interaction between government and business actors, including women entrepreneurs; continuing regulatory reforms to promote competitiveness and innovation and ease of doing business.

In addition, the key factors are improving connectedness (institutions, organizations and individuals) in the Indian Ocean region, including facilitating business activities; promoting shipping, ports, transport and logistics alliances within the region and with other regions in the world; and developing a suitable standard for IORA Member States, taking into account international standards. (Ahmed Kurnia/Bambang Purwanto/Translator: PR)