3rd joint Economic Commission Meeting in Nov
Dhaka likely to urge Jakarta for joint venture in power sector
JAGARAN CHAKMA
The third joint Economic Commission Meeting (JEC) between Bangladesh and Indonesia is likely to be held in Dhaka in November to boost trade between the two nations, according to sources at the Economic Relations Division (ERD).
Bangladesh may urge Indonesia for joint venture initiatives in the power sector, agriculture sector, garments industry, services industry, and tourism and hotel management, the sources said.
According to the export-import data of the Export Promotion Bureau (EPB), Bangladesh has negative trade balance with Indonesia during 20142016. Annual imports from Indonesia are nearly USD 1 billion (which slightly fell in 2016), while yearly exports to the same are approximately USD 50 million.
The JEC meeting working paper says it will set up the Indonesia-Bangladesh G2G Economic Zone dedicated to Indonesian investors under Government-to-Government (G2G) arrangement. The Bangladesh Economic Zones Authority (BEZA) will provide land as per the demand of Indonesia.
Under any financial assistance from Indonesia or other sources (third party finance), all offsite and onsite development can be undertaken to start an EZ with international standards.
In the Mirsarai Economic Zone (near Chittagong), the BEZA has plenty of land to set up EZs under G2G and PPP, while representatives of the Indonesian government and/or Indonesian investors can set up economic zones there, the paper said.
Under the private economic zone category, Indonesian investors can purchase or lease land at a suitable industrial location and build economic zones there.
There are enormous opportunities of investment in the human resource development (HRD) sector in Bangladesh. The Republic of Indonesia can establish one Centre of Excellence Training Institute for skill development of the workforce, the paper noted.
In Mirsarai, Chittagong and DhakaMymensingh regions, the BEZA will be able to provide land for establishment of training institutes. Indonesian investors can invest there.
Moreover, in the Mirsarai Economic Zone and the Powerpac Economic Zone in Mongla, plots are ready for investors.
Earlier, Bangladesh and Indonesia had agreed to strengthen economic and trading ties. Both countries felt the need to take further important steps to enhance and balance bilateral trade through food production, mining, agriculture, health and small-medium enterprises (SMEs).
Indonesia is keen to learn further about the success of Bangladesh in developing micro-credit for the poor, while Bangladesh needs coal supply to generate power plants in the country. The country also expects further cooperation to boost foreign investment, especially from Indonesian investors, to build an infrastructure network.
Indonesia and Bangladesh have also felt the need of direct link between the two countries to increase the number of tourists and enhance the intensity of people-to-people contact.
Recently, the bilateral trade between Indonesia and Bangladesh has reached USD1.4 billion, showing an increase of over 32 per cent over the previous year.
