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Context:

Indonesian President Prabowo Subianto visited India to attend the celebrations of India's 76th Republic Day as the Chief Guest.

India-Indonesia Relation

Historical and Cultural Ties

The South Indian origin objects discovered at Simberan in Bali have been carbon-dated to 660 BCE (+/- 100). The discovery suggests early cultural exchanges between South India and Bali.

The Ramayana and Mahabharata have a deep influence on Indonesian culture. These epics are still performed, such as during Ramayana dances in Java, and their themes continue to be relevant in Indonesian traditions.

Indian Mughal architecture significantly influenced Indonesian Islamic architecture, especially in Sumatra. Examples include the Baiturrahman Grand Mosque in Aceh and the Great Mosque in Medan.

Modern Diplomatic Relations

India and Indonesia established diplomatic relations in April 1949 and signed a treaty of friendship in 1951.

Indian Prime Minister Nehru and Indonesia President Sukarno worked together to establish the Afro-Asian and Non-Aligned Movements at the Bandung Conference in 1955.

The relationship has largely remained peaceful, with a few exceptions during the 1965 war.

• During the 1965 war, Indonesia offered to assist Pakistan, including a plan to seize India's Andaman and Nicobar Islands to distract it from the Kashmir front, although it later backed down from these actions.

Since India adopted the ‘Look East Policy’ in 1991, bilateral relations between India and Indonesia have rapidly developed in political, security, defence, commercial, and cultural fields.

In 2005, during the Visit of Indonesian President Susilo Bambang Yudhoyono, India and Indonesia signed the ‘Joint Declaration on Establishing a Strategic Partnership,’ which further strengthened their relationship.

Strategic Partnership and Security

India and Indonesia signed a strategic partnership agreement to boost cooperation in areas such as national and maritime security, trade connectivity, infrastructure, and economic development.

India’s southernmost territory, the Andaman and Nicobar Islands, is close to Aceh province in Indonesia, a region that serves as an important global trade route.

India and Indonesia adopted the "Shared Vision of India-Indonesia on Maritime Cooperation in the Indo-Pacific" in 2018. Both leaders reaffirmed that India and Indonesia, as maritime neighbours and strategic partners, must work to deepen and broaden their defence cooperation into a more robust one.

Strategic and operational interaction between the defence forces, including the biannual India-Indonesia Coordinated Patrol, bilateral Army (Ex Garuda Shakti) and Naval (Ex Samudra Shakti) exercises, and participation in multilateral exercises like Milan, Komodo, Tarang Shakti, and Super Garuda Shield.

Economic Engagement

Indonesia has emerged as the 3rd largest export and largest trading partner of India in the ASEAN region in FY24.

The total bilateral trade in 2023-24 reached around US$ 29.4 billion. Both countries have set a target of US$ 50 billion in trade by 2025.

• Major exported items from India to Indonesia include engineering goods , followed by petroleum products, organic and inorganic chemicals, Oil seeds.
• Major items imported by India from Indonesia include mineral fuels, oils and waxes, followed by animal or vegetable fats and oils and their cleavage products, natural or cultured pearls, precious or semiprecious stones, iron and steel.

Indonesia occupies the 36th position in FDI equity inflows into India with a cumulative FDI amount of US$ 654.12 million (April 2000-March 2024).

An MoU on Local Currency Settlement Systems (LCSS) was signed between the Reserve Bank of India and Bank Indonesia in March 2024.

India has supported Indonesia’s new mid-day meal scheme by sharing knowledge and facilitating visits to relevant Indian institutions for Indonesian officials.

Outcome of Recent Visit of the President of Indonesia

Strengthen bilateral relations

Both leaders agreed to continue regular meetings and dialogues through existing bilateral mechanisms, such as the Joint Commission Meeting, Foreign Office Consultations, and Joint Working Group meetings. They also agreed to establish new platforms like the Bilateral Maritime Dialogue and Cyber Security Dialogue.

Both leaders welcomed the idea of initiating cadet exchanges between the Naval Academies and the National Defence University/Academy of both countries.

Defense and Security

India agreed to share expertise and support Indonesia’s ongoing defence modernization programmes. Both nations also affirmed their commitment to enhancing collaboration in the defence industry through the Joint Defence Cooperation Committee (JDCC).

They agreed to continue working together and maintain constant communication on maritime safety. They welcomed discussions on the White Shipping Information Exchange (WSIE) agreement and agreed to position an Indonesian International Liaison Officer at the Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram, Haryana.

Both leaders agreed to continue their combined efforts for the safety of navigation in the Straits of Malacca and Singapore (SOMS) through existing mechanisms to enable unhindered economic growth in the region. They also planned to begin cooperation in Hydrography and Submarine Search and Rescue.

The President of Indonesia thanked Prime Minister Modi for offering specialized courses by the National Security Guard (NSG) of India. He highlighted the value of capacity-building and knowledge-sharing in counter-terrorism efforts.

Trade and Development

They agreed to hold the 2nd meeting of the Working Group on Trade and Investment and the 4th Biennial Trade Ministers’ Forum to address trade barriers. They also aimed to expedite the review of the ASEAN-India Trade in Goods Agreement by 2025.

The leaders signed MoUs on Health Cooperation and Traditional Medicine Quality Assurance to boost health sector collaboration, and agreed to share best practices on Digital Health and increase capacity-building programs for healthcare professionals, including training in various medical fields.

Emphasized renewable energy goals and joint exploration projects related to critical minerals like nickel and bauxite. They supported the Nunukan Gas Block Project and recognized the role of biofuels in decarbonizing transportation.

Agreed to conclude the Agreement on Transfer of Sentenced Persons and to hold the second Consular Dialogue in early 2025 in India.

Signing of the Cultural Exchange Programme (2025-2028) and committed to preserving cultural heritage, including the temples at the Prambanan Temple Compounds.

Steps to strengthen India-Indonesia ties

Indonesia’s membership in BRICS presents an opportunity for collaboration between India and Indonesia within this strategic bloc. Both countries can leverage this platform to bring greater strategic weight to BRICS, even though Indonesia’s economic ties with China may limit its stance on some issues.

Indonesia has evolved its stance on the Indo-Pacific, with its role in ASEAN’s Outlook on the Indo-Pacific (AOIP) aligning with India’s Indo-Pacific Oceans Initiative (IPOI).  

India and Indonesia can engage more directly in forums like the ASEAN-plus-one, East Asia Summit (EAS), and ASEAN Regional Forum (ARF) meetings. Prior consultations between the two countries can help them make a more significant impact on regional architecture.

Indonesia should be invited to join the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) to integrate it better with India’s eastern neighbourhood.

Way Forward

India and Indonesia can utilize platforms such as BRICS, the Indo-Pacific Oceans Initiative (IPOI), and trilateral frameworks with Australia and Japan to develop a more comprehensive partnership, and both countries should focus on areas of convergence to shape the strategic landscape of the Indo-Pacific and beyond.

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Source: 

INDIAN EXPRESS