The Bhutanese Leading the way.
The Ambassador of Indonesia to Bhutan, Ms. Ina H. Krisnamurthi, concluded a successful second visit to the country, emphasizing the need for increased economic collaboration between the two nations.
The Ambassador’s visit, from 3rd to 6th November, was accompanied by a delegation of Indonesian business leaders, signifying the growing interest in exploring bilateral trade and investment opportunities.
“I want to express my gratitude to the people of Bhutan for the warm hospitality and unbelievable welcome to all of us coming from India to Bhutan. This is my second visit Bhutan, as my first visit was in October 2022 when I presented my credentials.”
She had planned to come in December to celebrate 15 years of diplomatic relations between Indonesia and Bhutan, which we established in 2011.
Subsequently, the Ambassador’s current visit also focused more on exploring potential and opportunities for economic collaboration.
She shared that trade relations between our two countries have been quite substantial in the past five years.
The Ambassador said, “There is still a lot of potential waiting to be tapped and in line with it our visit this time aims to deepen our understanding of each other’s potential and opportunities for mutual benefit.”
She also highlighted the significant Indonesian investments already present in India, amounting to USD 1.3 billion.
She believes both countries can leverage this existing investment network, as well as Bhutan’s Free Trade Agreement (FTA) with India, to explore opportunities for Indonesian products and investments in Bhutan and vice-versa.
The Ambassador stressed the potential for collaboration, drawing on Indonesia’s existing strong economic presence in India, which includes investments in FMCG (fast moving consumer goods), especially in food and beverages, paper, digital, and other sectors and the potential for Bhutan to benefit from this network.
The director of the Indonesian Trade Promotion Centre based in Chennai, India, Nugroho Priyo Pratomo, said that the Trade Expo in India draws around 1,500 exhibitors each year held in October.
The Ambassador highlighted that these trade expo is one of the largest expo in southeast Asia and despite 13 years of diplomatic relations, no Bhutanese business representatives have participated in the expo emphasizing the need for such collaborations.
Nugroho shared that the expo is organized in four clusters – F&B and agriculture, manufacturing, services, tourism and IT.
He shared that Bhutan has potential market doing collaboration with Indonesia, especially in terms of organic products.
The Ambassador shared that the two countries have had collaborations in the past, and also on political area. However, economy is one such area which has not been touched in the past, so she expressed the need to do more on the economic front.
Opportunities in Organic Products and Food Processing
The delegation identified opportunities in organic products, with Bhutan being recognized for its high-quality organic produce.
“Bhutan has great potential to export organic products to Indonesia,” said the Ambassador.
The delegation also expressed interest in investing in Bhutan’s food processing industry. They highlighted the need for government support, including land allocation, tax subsidies, and streamlined visa processes.
Business delegates emphasized on the need for a more user-friendly business environment in Bhutan to facilitate ease of doing business.
One business representative, a major food product distributor in India, particularly highlighted the challenges in exporting products to Bhutan, stressing the need for a sizable and reliable market to ensure seamless operations.
Another business delegate shared that they are looking for future investment in Bhutan, if there are business flexibility, with the support from the government such as land accessibility, tax exemptions, access to loans and business visa grants.
The Ambassador along with the business delegates during their visit had discussions with the Ministry of Foreign Affairs and External Trade (MoFAET) and Bhutan Chamber of Commerce and Industry (BCCI).
