TEMPO.CO, Jakarta - Indonesia has a great opportunity to establish industrial cooperation with the Indian Ocean Rim Association (IORA) member states which include cooperation in shipping, sea products, auto components, petrochemical, and coal gasification as well as agro-processing industry.

“We are stepping up industrial investments due to their labor-intensive nature with an orientation on exports and import substitution. Improved market access to IORA member states, most of which are non-traditional markets, may be done through the framework of a bilateral supply chain,” Industry Minister Airlangga Hartarto said after attending the IORA Business Summit in Jakarta on Monday, March 6, 2017.

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The Industry Minister in a written statement said that Indonesia also needs to initiate business matching with the IORA member states and to optimize the roles of the Indonesian Embassies in promoting local industries and market potential.

“Improved cooperation such as training and capacity building of small and medium-scale industries have already been done with Mozambique and Seychelles,” he noted.

In terms of economic interests, Airlangga said that the countries of the Indian Ocean have huge economic potential, boasting a large market with a population of 2.7 billion, with around 70 percent of world trade passes through the region, they also have 55 percent of global oil reserves and 40 percent of global gas reserves.

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Moreover, the countries produce roughly 1/3 of global tuna production and hold valuable mineral reserves.

“Considering such potential, Indonesia needs to, among others, establish infrastructure and maritime connectivity, including the development of shipping and maritime industry,” he said.

In line with the idea of a global maritime axis, according to Airlangga, Indonesia is striving to exert its influence on the economy and political sphere in the Indian and the Pacific Oceans.

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IORA is the biggest cooperation forum in the Indian Ocean established in 1997. IORA has 21 member states, namely Australia, South Africa, Bangladesh, Comoros, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Seychelles, Singapore, Somalia, Sri Lanka, Thailand, United Arab Emirates, and Yemen. The IORA’s seven dialogue partners are the United States, the United Kingdom, Japan, Germany, Egypt, China, and France.

ANTARA