For the Indonesian president, "It is the time for us to have a comprehensive strategic partnership [characterised] by concrete cooperation”. Indo-Indonesian trade reached US.87 billion last year. Indonesia urges India to review its higher tariff on palm oil imports.

Jakarta (AsiaNews/Agencies) – Indonesian President Joko "Jokowi" Widodo today received Indian Prime Minister Narendra Modi at the Merdeka Palace in Jakarta on the latter's first state visit to the country.

The two leaders held a private meeting during which they discussed their countries’ strategic partnership, including economic and defence matters. This was followed by a meeting of the two delegations.

Speaking at the start of the latter, Jokowi said that Modi's visit, which also marked the Indian prime minister’s first visit to Indonesia, was very timely, as it came at a time of many uncertainties in the world.

"It is the time for us to have a comprehensive strategic partnership [characterised] by concrete cooperation," Jokowi said. "Such cooperation can be realised only by improving engagement, including at the leaders’ level."

The Indonesian leader went on to express his hope that Indonesia and India, which celebrate 70 years of bilateral ties next year, could further enhance a partnership that has contributed to global peace and stability.

Trade between the two countries has increased significantly over the past few years, 28.7 per cent in 2017 alone. Indonesian exports amounted to US.08 billion, including palm oil and coal, whilst imports were valued at US.05 billion.

India ranked 16th among foreign investors in Indonesia in 2017, a great leap from the 24th position the year before.

As for tourism, about 500,000 Indians visited Indonesia last year, a 28 per cent increased over the previous year.

During the meeting, President Widodo called on Indian Prime Minister Narendra Modi to reduce the import tariff on palm oil products from Indonesia, which is the world’s largest producer.

"I beg PM Modi's attention regarding the increased tariffs on palm oil products," Jokowi said on today at the joint press conference that followed the meeting between the two leaders.

Last February, the Indian government raised the import tax for crude palm oil from 30 per cent to 44 per cent. It also raised the tax for refined palm oil products from 40 per cent to 54 per cent.

According to the Indonesian Palm Oil Producers Association (Gapki), palm oil exports to India reached 7.6 million tonnes in 2017, up 32 per cent from 2016. In 2017, the India accounted for 24 per cent of Indonesia’s total palm oil exports.

Last year, Indonesia increased its palm oil exports by 23 per cent year-on-year to 31.05 million tonnes.

Coordinating Economic Minister Darmin Nasution said India raised its tariff on palm oil three times in one-and-a-half years, which was a heavy burden for Indonesian exports to India, especially after the European parliament imposed a ban on the use of palm oil as a biofuel.

This major blow to the Indonesian economy has caused tensions between Indonesian and the European Union (EU).

After the meeting at Merdeka Palace, Widodo and Modi headed to the National Monument complex to inaugurate a kite festival, jointly organised by the Jakarta Layang-Layang Museum and the Ahmedabad Kite Museum (Gujarat, India).

Widodo and Modi are also expected to visit the Istiqlal Mosque.

Tomorrow the Indian prime minister will leave for Kuala Lumpur, for a brief meeting with the new Malaysian Prime Minister Mahathir Mohammad.

He will then conclude his trip to Southeast Asia in Singapore, at the invitation of Prime Minister Lee Hsien Loong.

• Indonesia
• india
• state visit
• narendra modi
• joko widodo
• bilateral relations
• trade
• palm oil