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'Direct India-Indonesia air link needed'

August 11, 2003 18:23 IST

There is an urgent need to establish direct air links between India and Indonesia to enhance trade relations between the two countries, Indonesia's charge d' affaires to India Suhadi M Salam said at a meet in New Delhi on Monday.

Speaking at a Federation of Indian Chambers of Commerce and Industry meeting, Salam asked Indian businessmen to take full advantage of opportunities in his country.

The absence of a direct flight between India and Indonesia is an impediment in strengthening trade ties and it must be established as soon as possible, he reiterated.

The areas of complementarity between the two countries, particularly in IT, agri-products, auto parts and tourism are immense and the governments of the two countries should facilitate the process of greater interaction between their business communities, Salam said.

On absence of multiple-entry visa to Indonesia, he said the matter would be taken up with relevant authorities and efforts would also be made to ease restrictions.

FICCI assistant secretary general Kishen Kalra said despite global recognition, Indian pharma industry was facing problems in entering Indonesian market and the government should look into this matter.

On the issue of buffalo meat export to the country, he said existence of 'foot and mouth disease' was just a myth and it complied World Health Organisation standards. Indonesia should import it directly from here than through an indirect route, he added.

Besides traditional items like rice (other than basmati), wheat, iron and steel, dyes and chemicals, there was a big market for electronic goods and non-ferrous metals.

On the impact of terrorist strikes on the country's investment climate, Salam said that it has had no adverse effect as foreign investment to the nation continues to grow.

Even in the tourist island of Bali where the blasts took place, the occupancy rate of hotels ranges between 40 per cent to 60 per cent, the diplomat said.


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