Thukten Zangpo

A high-level Indonesian delegation, led by the ambassador of Indonesia to Bhutan, and business delegations based in India are in the country to explore new avenues in economic cooperation between the two countries from November 3 to 6.

This visit marks the 13th anniversary of diplomatic relations between the two countries and aims to foster stronger trade and investment ties.

Bhutan and Indonesia established diplomatic relations on December 15, 2011.

Ambassador of Indonesia to Bhutan with residence in New Delhi, India, Ina Hagniningtyas Krishnamurthi, held productive discussions with the foreign affairs and external trade minister and the president of the Bhutan Chamber of Commerce and Industry.

This is her second visit to Bhutan after assuming office in October 2022.

The focus of the discussions was on identifying potential areas for collaboration, such as agriculture, manufacturing, and tourism.

“Our main purpose was to explore potential opportunities in economic collaboration which was not explored yet,” the ambassador said, adding that the trade relations between two countries have substantially grown in the last five years.

According to the trade figures, Bhutan imported Nu 248.75 million worth of goods from Indonesia, ranking as the 13th import country last year. The list of imported goods include IT equipment, mechanical appliances, and textiles, among others.

Bhutan exported negligible amount of cordyceps sinensis to Indonesia in the same year.

Ina Hagniningtyas Krishnamurthi said that Bhutan has potential for economic collaboration with Indonesia’s investments in India.

“Indonesia investment in India reaches about USD 1.3 billion and Bhutan needs to make use of this investment in terms of exploring business opportunities,” she said.

She added that Indonesia has already established FMCG (fast moving consumer goods) in India in sectors like food and beverages, paper, and digital.

Ina Hagniningtyas Krishnamurthi said that not a single Bhutanese business delegate attended the Indonesian Trade Expo, a major event in Southeast Asia in the last 13 years.

The director of the Indonesian Trade Promotion Centre based in Chennai, India, Nugroho Priyo Pratomo, said that the Trade Expo draws around 1,500-2,000 exhibitors which is held in October every year.

The Expo focuses on four main clusters-food and beverages, including agriculture, manufacturing, services and tourism, and information and technology.

Nugroho Priyo Pratomo said that the Bhutanese businesses will be invited and facilitated to join the Expo to strengthen bilateral trade between the two countries and showcase products, especially organic products, from Bhutan to a wider market.

He added that the Expo provides opportunities for business-to-business collaboration with Indonesian businesses and  business from other countries. It also provides a platform for government-to-business discussions and to disseminate information on trade and business.

Nugroho Priyo Pratomo said that since both countries are agrarian, there are opportunities for foreign direct investments in the agriculture sector.

To facilitate increased trade and investment, the Indonesian delegation suggested that Bhutan could benefit from streamlining its business regulations, including easing access to land, finance, tax incentives, business visa, among others.