IORA To WIden Economic Cooperation Among Members: BKPM Chief

JAKARTA, Mar 7 (Antara) - The Indian Ocean Rim Association (IORA) is expected to widen the opportunity of economic cooperation among its member countries, especially with Indonesia, in tourism, trade, and investment sectors. Chief of the Investment Coordinating Board (BKPM) Thomas Lembong said, on the sideline of IORA summit here, Monday, that the cooperation should not just focus on one sector. "IORA members have diverse (conditions). In general, we want to expand cooperation in tourism, trade, or investment," Thomas stated at the first IORA leaders' summit in the 20-year history of the organization. IORA consists of 21 member states namely Australia, South Africa, Bangladesh, Comoros, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Seychelles, Singapore, Somalia, Sri Lanka, Tanzania, Thailand, United Arab Emirates, and Yemen. In addition, it groups seven dialogue partners namely the United States, the United Kingdom, Japan, Germany, Egypt, China, and France. Four of the IORA members namely South Africa, Australia, India, and Indonesia, and six dialogue partners namely the US, the UK, China, Germany, Japan, and France are members of G20. "Investment would depend on which country we are discussing with. There are small countries and big countries. Investment would open the access to other countries' market too," Thomas remarked. IORA's intra-regional trade in 2015 had amounted at US$777 billion, up 30 percent compared to the trade at $233 billion in 1994. The Indian Ocean constitutes 70 percent of the world's trade route, including oil and gas distribution. It carries half of the world's container ships, one-third of the world's bulk cargo traffic, and two-thirds of the world's oil shipments. The region is home to about 2.7 billion people or 35 percent of world's population. However, its contribution has only covered 12 percent of the world's market share, 10 percent of global gross domestic product, and 13 percent of foreign investment destination. Some 96 percent of the intra-IORA trade is dominated by six countries namely Singapore, Malaysia, India, Indonesia, Australia, and South Africa. Indonesia has eyed some countries including Bangladesh, Kenya, Mozambique, South Africa, United Arab Emirates, and Iran to increase its trade.