Aceh-Andaman Connection Key to Boosting Indonesia-India Trade

Indonesia and India plan to improve connectivity between Indonesia’s province of Aceh and India’s islands of Andaman and Nicobar to unlock business potential in an effort to increase bilateral trade to US$50 billion by 2025.

“The proximity of Andaman and Nicobar Islands to Aceh is a good opportunity for business partnerships. We can provide goods [to Andaman and Nicobar] more efficiently than for them to wait for a shipment from India,” said Aceh acting governor Nova Iriansyah during the India-Indonesia Investment & Business Forum in Jakarta on Monday as cited by The Jakarta Post. 

According to Economic Times, India and Indonesia eyeing to reach target of $ 50 bn trade by 2025 are contemplating new areas of investments including through Aceh-Andaman connectivity which would unlock immense business opportunities in a range of sectors, including health care, tourism, energy, construction, agro processing and fisheries. 

The Forum was jointly inaugurated by Ina H Krisnamurthi, Advisor to the Minister of Foreign Affairs on Economic Diplomacy and Pradeep Kumar Rawat, Ambassador of India and lr Nova Iriansyah, Acting Governor of Aceh. 

India and Indonesia are both maritime countries. The two neighbours have the largest economies in both respective regions. As per 2018, trade values of the two countries reached $ 18 bn, as reported by Indonesian media Antara.