On 26th January this year President Prabowo Subianto of Indonesia will be the Chief Guest on India's 76th Republic Day celebrations. It is a fitting occasion to rejuvenate millennia long ties between India and Indonesia. Also, it was Indonesian President Sukarno who was the Chief Guest for India's first Republic Day celebrations. That visit ushered in a new era of cooperation reflected in the Bandung Conference and the institutionalized in the Non-aligned movement during the Cold War.
President Prabowo's current visit which began yesterday is the first bilateral visit by an Indonesian President to India after nine long years. The visit will include a comprehensive review of bilateral ties, as well as regional and global issues of mutual interest. Several MoUs are expected to be signed in areas as diverse as food security, energy security and health care,
Both India and Indonesia are close maritime neighbours with cultural and trade ties spanning over a millennia. Both are invested in an open and free Indo-Pacific with open sea lanes of communication, and protecting their territorial integrity and sovereignty.
Part of the larger ASEAN outreach
India’s outreach to Indonesia comes as part of its greater outreach to ASEAN, energized by Prime Minister Narendra Modi’s Act East Policy. Launched in 2014 the Act East Policy was meant to impart greater dynamism into the earlier Look East Policy, by reinforcing India’s ties with Southeast Asia through engagement across sectors — economic, cultural, and strategic. This is vital for a greater Indian footprint in the Indo-Pacific.
Indonesia is an important member of ASEAN, if not the most important, both as a founding-member, and as the bloc’s largest economy and most populous member with approximately 290 million strong population. It is also the world's largest Muslim nation.
Bilateral ties between India and Indonesia got a fillip during the visit of Narendra Modi, Prime Minister of India to Jakarta in May 2018, when India and Indonesia elevated their ties to “Comprehensive Strategic Partnership”. Both countries also agreed on the “Shared Vision of India-Indonesia Maritime Cooperation in the Indo-Pacific”.
Indonesia is strategically important for India in several ways. Both are emerging economies, both countries have a shared experience of colonialism and were closely aligned during the Cold War as part of the non-aligned movement. This non-aligned approach continues today even though major geopolitical changes mean that now it is no more about navigating the rivalry between the US and USSR, but that between the US and China. Both India and Indonesia share a similar vision for a free, open, and inclusive Indo-Pacific region which respects ASEAN centrality.
Indonesia is one of India's largest trading partners in the ASEAN region. Bilateral trade in 2023-24 reached $29.40 billion. Indian investments in Indonesia amount to $1.56 billion in several areas, but there is still more potential for greater growth.
Defence is the most crucial plank of bilateral ties
The most crucial pillar of bilateral cooperation, however, maybe defence. During Modi’s visit in 2018, both countries concluded a Defence Cooperation Agreement. Indonesia is seeking to diversify its defence partnerships and India acquires salience here. India’s defence industry and defence exports are gaining traction. In this context, reports about a potential deal between India and Indonesia to procure the BrahMos missile system is significant. Jointly developed by India and Russia, the Philippines recently became the first country in Southeast Asia to procure the BrahMos missile system. Vietnam is another country in the region that pursues robust defence relations with India. Indonesia is currently trying to modernize its military and enhance its defence capabilities, amidst security concerns in the South China Sea. If it materializes, such a deal would be a boost for India's defence industry and its reputation as a reliable defence partner.
Besides, India and Indonesia also participate in a number of defence and maritime exercises. Since 2002 the two countries have been conducting India-Indonesia Coordinated Patrol twice a year - a joint exercise between the Indian Navy and the Indonesian Navy, to keep the Indian Ocean Region safe and secure. Similarly, Exercise Samudra Shakti is aimed at enhancing interoperability, jointness and mutual cooperation between both the navies.
Recently, both countries held the 9th edition of the Indo-Indonesia Joint Special Forces Exercise, Garuda Shakti. The exercises are important for deepening understanding and fostering interoperability between the two militaries, as well as for counterterrorism operations.
India’s stake in port infrastructure
India is also developing a deep sea port in Sabang in Indonesia's Aceh province. The port lies approximately 376 nautical miles from Port Blair, and is just 500 kilometres away from the Malacca Strait, a crucial choke point on the sea lanes of the Indian Ocean. Developing the port will give India a crucial strategic asset to counterbalance assertive powers in the region. Discussions regarding the port are expected to majorly feature during Prabowo's current visit.
While the ASEAN countries majorly focus on trade and development issues, Indonesia is no different. Here the major trading partner and investor is China. But with increasing Chinese assertiveness, including in Indonesia's exclusive economic zone, ASEAN countries are trying to diversify both trade and defence partnerships. This is reflected in both bilateral ties, as well as participation in multilateral platforms like BRICS, of which India is a founding-member. Recently, at least three ASEAN countries joined BRICS as partner countries. Indonesia is the most recent country to do so, with active support from India, throwing up new vistas of cooperation.
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