17 July 2011

Indonesia invites Indian investments in infrastructure


Indonesia invites Indian investments in infrastructure

CHENNAI: Indonesia has invited Indian industrialists to invest in infrastructure sectors and also look at it as a source of many other products apart from coal in order to expand bilateral trade and investments between the two countries, its envoy said on Saturday.

"Indonesia is not just a large coal producer. We have other national resources which India can look at. We would like to grow the bilateral trade between India and Indonesia to $25 billion by 2015 from the current $13 billion," Indonesian Ambassador to India Andi M. Ghalib said here at a meeting with industrialists organised by Confederation of Indian Industry (CII).

Referring to the 32 memorandums of understanding (MOU) signed between India and Indonesia early this year, he said 18 are business-to-business with an investment/business potential of around $16 billion.

Inviting Indian industrialists to invest in infrastructure sectors in Indonesia, Ghalib said the discussions between the two countries on signing a Comprehensive Economic Cooperation Agreement (CECA) will be held.

Investment cooperation between the two countries is also increasing by the year. India's investment in Indonesia has increased from $11.6 million in 2007 to $44 million in 2010.

Indian investment is present in various industries including mining, automotives and machinery, clothing, agriculture and chemicals.

India is also Indonesia's largest buyer of crude palm oil and an importer of its mining, petroleum and paper products.

On its part, India exports refined petroleum products, wheat, rice, sugar and steel to Indonesia.

According to Ghalib, the two countries are in the process of setting up an Eminent Persons' Group (EPG) to develop 'Vision Statement 2025' for the Indonesia-India strategic partnership.

The EPG would guide the future progress and prepare a blue print of Indonesia-India relations over the next 15 years.

Ghalib said Garuda Airlines is in discussion with India in securing landing rights in couple of major Indian cities.




Is Afghanistan ready to decide its own destiny?

Is Afghanistan ready to decide its own destiny?


US President Barack Obama's announcement of the start of American troop withdrawals from Afghanistan, and his administration's increasing emphasis on reconciliation with the Taliban, have been studied attentively in one capital that has a large stake in the outcome — New Delhi.

India has no troops in Afghanistan, but it has invested roughly $1.5 billion to help reconstruct the country, with projects ranging from maternity hospitals to Kabul's electricity grid. During his visit toAfghanistan in May, Prime Minister Manmohan Singh announced additional assistance of $500 million, over and above India's existing commitments. This is by far India's largest foreign aid program, because Afghanistan — separated from India only by its hostile neighbour Pakistan — remains a country of vital strategic significance for India.

So, what does the looming US withdrawal mean for India's role in Afghanistan? India has largely focused its aid efforts on building institutional capacity and developing human resources, so that Afghans can stand on their own feet before long. One ongoing project is the construction of a new parliament building in Kabul, a symbol of India's desire to see representative institutions flourish. But it is no secret that India does not believe that Afghanistan is ready to dispense with the foreign forces that have been shoring up domestic peace.

India is not a member of the United States led International Security Assistance Force (ISAF), a largely Nato operation to which it was not invited to contribute, given Pakistani sensitivities about a possible Indian military presence in Afghanistan. But India regards the foreign military presence as indispensable to promoting political stability and economic reconstruction. Without the security provided by a serious troop presence, the kind of development projects in which India is engaged would become impossible.

No one in India's government really expects US forces to disappear overnight from Afghanistan, despite the elimination of Osama bin Laden. The plan is to withdraw only 10,000 US troops by the year-end. Later, when winter sets in (traditionally the season when military activity declines ), America will withdraw another 5,000. But Obama says that he intends to bring the 30,000 "surge" troops back home by next summer, after the Afghan snows melt and the US election season starts heating up. Even if he does, 68,000 US troops would remain — twice the number deployed in Afghanistan when he became President.

By 2014, the US intends to reduce its operational presence to a role largely confined to supporting Afghan forces. Even that does not imply full withdrawal. After all, the rationale for the original US intervention was to prevent Afghanistan from becoming a safe haven for the next Bin Laden. Indications are that the US will maintain about 20,000 troops in Afghanistan, even in the most modest scenario. Indians have every reason to be relieved. An Afghanistan without ISAF will be prey to the machinations of Pakistan's notorious Inter-Services Intelligence (ISI), which created, trained, financed, and directed the Afghan Taliban in the 1990s.

As a result, America's interest in reconciliation with the Taliban is viewed with concern in India. After long rejecting this approach (on the reasonable grounds that there can be no such thing as a good terrorist), India has come around to accepting dialogue with those Taliban elements that are prepared to renounce violence.

Obama speaks of dealing with Taliban members who agree to break with al-Qaida and abide by the Afghan Constitution. But India is wary of those who, under Pakistani tutelage, might pretend to be reborn constitutionalists, but seize the first opportunity after a US withdrawal to devour the regime that compromises with them.

This is why India stresses the importance of improving the Afghan government's capacity to fight and overcome terrorism. The role of Pakistan — whose over-ambitious military has made no secret of its desire to control the government in Kabul in order to gain "strategic depth" — remains of serious concern, particularly given China's recent progress in making Pakistan its own zone of "strategic depth," with access from the Karakoram mountains to the Arabian Sea.

India shares America's commitment to what Obama described last December as the "longterm security and development of the Afghan people." But, for India, any process of reconciliation should be Afghan-led, inclusive, and transparent. India fully supports the "red lines" affirming Afghan leadership and ownership of the negotiating process laid down by President Hamid Karzai's government in its London and Kabul communiqués.

The bottom line for India remains the Afghan people's right to decide their own destiny. It views the international community's role as being to help Afghans accomplish that. And it doesn't believe that Afghanistan is ready for the world to give up on it yet.