India Development News & Foreign Investment Opportunities

India concern about restriction on auto product exports in Indonesia

Goyal wants to expand bilateral trade


Goyal wants to expand bilateral trade




Commerce and Industry Minister Piyush Goyal has highlighted India’s concern on the import quota restrictions faced in Indonesia by the Indian auto and auto component industries on completely built up units (CBU) and tyres.

The restricted import quota prescribed by Indonesia for Indian vehicles in CBU condition has adversely impacted Indian exports, he said during bilateral talks with Indonesian Trade Minister Enggartiasto Lukita in New Delhi on 9 July 2019.

Long lead-time taken for regulatory certification for new vehicles also affects launch of new products, he added.

Indonesia adopts standards for emission which is not commensurate with the global emission norms for fuel efficiency in automobiles.

Further other competitors have better market access advantage over Indian automakers due to bilateral FTA arrangements.

The Indian Minister has also requested the Indonesian side to allow Indian Origin Frozen Halal Buffalo Meat (FHBM) shipment free through various important ports, without quotas and restrictions, directly to Indonesian importers/distributors.

Responding, the Indonesian Minister has assured Goyal that he would address this gap auto trade and that there will be no quota restrictions from authorized exporters as long as quality is meat maintained.

Goyal highlighted considerable potential for expanding trade in agricultural, automobiles, engineering products, IT, pharmaceuticals, bio-technology and healthcare sectors.

Goyal is seeking to manage the bilateral trade of US$21.13 billion in 2018-19, with trade deficit of US$10.57 billion.

He pointed out that the balance of trade is heavily in favor of Indonesia and both countries need to work towards establishing sustainable trade by diversifying the export basket.

Indonesia has emerged as the second largest trading partner of India in the ASEAN region after Singapore.

The Minister reiterated the potential for enhanced cooperation on health and pharma sector between India and Indonesia.

The Indonesian Trade Minister assured Piyush Goyal that he will take up the issue with Indonesian importers to source high quality and cost-effective pharma products from India.

Indonesia imports US$990 million worth of pharma products, out of which India’s share was only US$75 million.

Goyal has also asked for more market access for Indian agricultural products like musk melon, bitter gourd, grapes, pumpkin and milk products, which is pending with Indonesia.

He further requested his Indonesian counterpart to grant Country recognition to India for export of agricultural products under the new Fresh Food of Plant Origin (FFPO) regulation of Indonesia.

Indonesia’s new Fresh Food of Plant Origin (FFPO) regulation introduced from 17 February 2016 is a technical barrier which restricts exports from India.

The Indonesian side also assured India that it will facilitate sourcing of sugar from India by reducing tariffs and regularizing standards as per India’s requirement.

The visiting Minister requested for parity on duty with Malaysian exports of refined palm oil. Indonesian palm oil is currently suffering 5% disadvantage in Indonesia.

Goyal has assured that he will take up this issue with the concerned Ministry.

Goyal said that India is looking forward to enhanced bilateral engagement with Indonesia and requested Indonesia for holding the next India Indonesia Biennial Trade Ministers’ Forum Meeting (BTMF) at Jakarta at the earliest.

Leave A Reply

Your email address will not be published.