Sri Vijaya Puram, April 21: Plans to deepen economic and transport links between Indonesia’s Aceh province and the Andaman and Nicobar Islands moved a step forward on Monday, with discussions centred on a proposed direct international flight, a maritime trade corridor, and the possible upgrade of Campbell Bay into a notified customs port.
The proposals were discussed during an event titled Aceh–Andaman & Nicobar Direct Trading Opportunity, where officials and business representatives explored ways to strengthen commercial engagement between the two sides, according to details shared at the meeting.
Connectivity push
One of the key ideas put forward was the launch of a direct international flight between Aceh and Sri Vijaya Puram. The proposal, if taken up by the Indonesian government, is expected to cut travel time significantly and improve the flow of tourists, traders and officials between the two regions. Airport authorities in the Andaman and Nicobar Islands have conveyed readiness to extend the infrastructure and logistical support needed to operationalise such a route, the discussion noted.
Alongside the aviation proposal, participants also discussed a roadmap for direct trade between Aceh and the islands through Campbell Bay. A central recommendation was to upgrade Campbell Bay into a customs-notified port so that it can handle international cargo and emerge as a gateway for trade with Aceh. There was also a suggestion to allow wooden vessels on the route, a move seen as more practical and cost-effective for short-distance cross-border transport in the region.
To ease trade-related financial transactions, the meeting proposed banking coordination between Bank Syariah Indonesia in Aceh and the State Bank of India in the islands. The idea is to create a smoother payments channel for traders and reduce delays in cross-border settlements.
The commodity basket identified for the proposed maritime corridor includes fish and marine products from the islands, as well as coconut and value-added coconut products from the Nicobar group. In the other direction, supplies from mainland India to Aceh could include sugar, rice, pulses, dehydrated onion and garlic, beans, textiles, jute rolls and fishing equipment. Officials at the event also referred to estimated monthly demand in Aceh for staples such as sugar and rice, suggesting that the corridor could develop into a viable regular trade route if logistical arrangements fall into place.
The broader plan also envisages consolidating goods from islands such as Nancowry, Katchal, Teressa and Car Nicobar through Port Blair before linking them onward to mainland India through existing vessel services. This, officials said, would allow new trade flows to build on existing maritime infrastructure rather than depend entirely on fresh capacity.
Participants also discussed the possibility of setting up dedicated trading hubs, an “Aceh Corner” in the Andaman and Nicobar Islands and an “Andaman & Nicobar Corner” in Aceh, to support business coordination and logistics. The event additionally referred to the likely formation of a third Joint Task Force between India and Indonesia in the coming months to create a more structured mechanism for bilateral engagement.
The discussions reflect a wider strategic push to leverage the geographic proximity between Aceh and the Andaman and Nicobar Islands, a location long seen as underused despite its closeness to the Strait of Malacca and its importance in regional maritime routes. If the proposals move from discussion to execution, they could open a new chapter in trade, tourism and connectivity between the islands and Southeast Asia.
