In a significant move to bolster bilateral economic relations, a high-level delegation from Indonesia arrived in Bhutan from November 3 to 6. Led by Ambassador Ina Hagniningtyas Krishnamurthi, Indonesia’s ambassador to Bhutan based in New Delhi, the delegation included prominent business leaders from India, marking a concerted effort to explore new avenues for trade and investment between the two nations.
This visit commemorates the 13th anniversary of diplomatic relations established on December 15, 2011, underscoring a decade-long partnership aimed at fostering mutual economic growth. Ambassador Krishnamurthi, on her second visit to Bhutan since assuming her role in October 2022, engaged in productive dialogues with Bhutan’s Foreign Affairs and External Trade Minister, as well as the President of the Bhutan Chamber of Commerce and Industry.
Discussions centered on identifying and leveraging potential sectors for collaboration, particularly in agriculture, manufacturing, and tourism. “Our main purpose was to explore potential opportunities in economic collaboration which was not explored yet,” Ambassador Krishnamurthi stated, highlighting the substantial growth in trade relations over the past five years.
Trade statistics reveal that Bhutan imported goods worth Nu 248.75 million from Indonesia last year, positioning Indonesia as Bhutan’s 13th largest import partner. The imports predominantly include IT equipment, mechanical appliances, and textiles. In contrast, Bhutan’s exports to Indonesia remained minimal, with only a negligible amount of cordyceps sinensis recorded.
Ambassador Krishnamurthi emphasized the untapped potential for economic collaboration, noting Indonesia’s significant investments in India amounting to approximately USD 1.3 billion. “Bhutan needs to make use of this investment in terms of exploring business opportunities,” she remarked, pointing to Indonesia’s established presence in the FMCG sectors such as food and beverages, paper, and digital industries in India.
A notable highlight of the discussions was the invitation extended to Bhutanese businesses to participate in the upcoming Indonesian Trade Expo. Director of the Indonesian Trade Promotion Centre in Chennai, Nugroho Priyo Pratomo, outlined the Expo’s scale and significance, noting that it attracts between 1,500 to 2,000 exhibitors annually every October. The event focuses on four main clusters: food and beverages including agriculture, manufacturing, services and tourism, and information technology.
Despite Bhutan’s growing economic profile, Ambassador Krishnamurthi pointed out that Bhutanese businesses have yet to participate in the Indonesian Trade Expo over the past 13 years. The Expo offers a strategic platform for Bhutanese enterprises to showcase their products, particularly organic goods, to a broader Southeast Asian market. Furthermore, it facilitates business-to-business collaborations and government-to-business engagements, providing invaluable opportunities for information exchange and partnership formation.
Both Bhutan and Indonesia share an agrarian foundation, presenting ample opportunities for foreign direct investment in the agricultural sector. To enhance trade and investment flows, the Indonesian delegation recommended that Bhutan consider streamlining its business regulations. Proposed measures include easing access to land, improving financial services, offering tax incentives, and simplifying business visa processes.
As the delegation’s visit concludes, the seeds planted during these high-level discussions promise to cultivate a more robust economic relationship between Bhutan and Indonesia. With mutual interests aligned and concerted efforts underway, the future looks promising for enhanced trade and investment collaborations between the two nations.
