G20: India, Indonesia announce launch of Economic and Financial Dialogue

The Indian and Indonesian finance ministers addressing the media in Gandhinagar on July 16.

India and Indonesia on July 16 announced the launch of an Economic and Financial Dialogue, with Finance Minister Nirmala Sitharaman saying the dialogue will facilitate better co-operation between India and Southeast Asia and contribute to global economic and financial stability.

"Since the adoption of India's 'Look East Policy' in 1991, and the 'Act East Policy' in the subsequent years, there has been a rapid development in bilateral relations between India and Indonesia, both in commercial and cultural fields. Indonesia has emerged as India's largest trading partner in the ASEAN region; our trade has increased eight-fold since 2005 and it touched $38 billion last year," Sitharaman said.

"In this background, we view this dialogue as an enabler for further deepening our partnership. We will be discussing issues of common interest that are mutually beneficial in enhancing our relationship with Indonesia," the minister added.

Sitharaman said the areas of co-operation would include bilateral investment, financial services, and infrastructure development, among others.

Both Sitharaman and her Indonesian counterpart Sri Mulyani Indrawati highlighted the similarities between India and Indonesia. Further, India has succeeded Indonesia as the G20 Presidency.

"…there are several legacy issues which we are continuing to take forward during our Presidency. In this context, this dialogue can play an instrumental role in reaching a common understanding on issues, and take forward the global agenda from the perspective of EMDEs (emerging market and developing economies)," Sitharaman said.

On her part, Indrawati said her discussions with Sitharaman had been "very good", especially relating to how India and Indonesia can have stronger bilateral relations.