India’s 76th Republic Day was special as Indonesia’s President Prabowo Subianto was the chief guest, reflecting the strong friendship between the two nations. Their ties date back to 1950 and over the years, they have strengthened cooperation in trade, security and global affairs. With $30 billion in bilateral trade, growing defense ties and Indonesia’s BRICS invitation in 2024, both nations are key players in the Indo-Pacific. They aim to expand economic growth, maritime security and clean energy partnerships, ensuring a stronger future for Asia and the world.

India’s 76th Republic Day: A Celebration of Strong India-Indonesia Ties

India’s 76th Republic Day was special as President Prabowo Subianto of Indonesia was the chief guest. His presence showed the strong friendship between India and Indonesia. The event highlighted India's democracy, culture and military strength. It also reminded the world of the deep and growing ties between India and Indonesia.

How have India and Indonesia strengthened their friendship over the years?

India and Indonesia have been friends for a long time. In 1950, Indonesia’s first President, Sukarno, was the chief guest at India's first Republic Day. Since then, both countries have worked together in trade, politics and culture. This was the fourth time an Indonesian leader attended India's Republic Day.

During his visit, President Prabowo met Prime Minister Narendra Modi. They talked about working together in trade, security, health and technology. Their goal is to make both countries stronger and more prosperous.

Trade Between India and Indonesia

India and Indonesia are fast-growing economies. They have many opportunities to increase trade and investment.

Trade Opportunities:

• India and Indonesia signed a trade agreement in 1966. More work is needed to improve trade today.
• Bilateral trade is around $30 billion, but it can grow four times in the next ten years.
• India has invested $1.56 billion in Indonesia. Indonesia has invested $653.8 million in India. This can increase.
• Both nations can lead the global energy transition by investing in clean energy and manufacturing.
• India’s economy is growing at 6.5% and Indonesia’s at 5.1% which is higher than the global average of 3.3%.

India and Indonesia’s Defense Cooperation

Security is another key area of cooperation. In 2018, India and Indonesia signed a Comprehensive Strategic Partnership to improve defense and maritime security.

Security Cooperation:

• Both countries want to protect their waters in the Indo-Pacific region.
• They are working together to fight terrorism and improve cybersecurity.
• Their growing military strength helps them deal with regional challenges.

Why Is IndiaIndonesia partnership important in a changing global order?

India and Indonesia are important in world politics. In 2024, Indonesia was invited to join BRICS, a group that includes India and China.

Global Factors:

• Both nations have strong ties with the U.S. and China.
• The U.S. may introduce new trade tariffs, affecting global business.
• Indonesia is rich in nickel, copper, tin and bauxite. It wants to trade more with India and the world.

The Road Ahead: Future prospects of India Indonesia relations

President Prabowo’s visit shows that India and Indonesia’s friendship is strong. Their 76yearold partnership will grow in trade, security and global cooperation. As they work together, they will build a better future for Asia and the world.

TRIVIA: A QUICK GLANCE AT INDIA-INDONESIA RELATIONS

Aspect	Details
Historical and Cultural Ties	South Indian-origin objects found in Simberan, Bali, carbon-dated to 660 BCE (+/ 100), indicating early cultural exchanges. The Ramayana and Mahabharata significantly influence Indonesian culture, with Ramayana dances in Java. Indian Mughal architecture influenced Indonesian Islamic architecture, evident in the Baiturrahman Grand Mosque (Aceh) and the Great Mosque (Medan).
Modern Diplomatic Relations	Diplomatic ties established in April 1949, Treaty of Friendship signed in 1951.  Nehru and Sukarno collaborated at the Bandung Conference (1955), laying the foundation for the Non-Aligned Movement. Tensions in 1965 when Indonesia planned to support Pakistan but later backed down. Since 1991, India’s Look East Policy has strengthened ties across political, security and economic fields. In 2005, the ‘Joint Declaration on Establishing a Strategic Partnership’ was signed.
Strategic Partnership and Security	Strategic partnership agreement to enhance maritime security, trade connectivity and infrastructure development. Andaman and Nicobar Islands are close to Aceh, Indonesia, a key trade route. 2018: Adoption of "Shared Vision of India-Indonesia on Maritime Cooperation in the Indo-Pacific. Defence cooperation includes Ex Garuda Shakti (Army), Ex Samudra Shakti (Navy), Milan, Komodo, Tarang Shakti, Super Garuda Shield.
Economic Engagement	Indonesia: 3rd largest export and largest trading partner of India in ASEAN. Bilateral trade in 202324: US$ 29.4 billion, target of US$ 50 billion by 2025. Exports from India: Engineering goods, petroleum products, organic/inorganic chemicals, oilseeds. Imports from Indonesia: Mineral fuels, vegetable oils, pearls, iron, steel.  Indonesia is 36th in FDI equity inflows into India (US$ 654.12 million, April 2000March 2024). March 2024: MoU signed on Local Currency Settlement Systems (LCSS) between RBI and Bank Indonesia. India supported Indonesia’s midday meal scheme through knowledge-sharing and visits.
Outcome of Recent Visit of the President of Indonesia	Strengthening Bilateral Ties Agreed to hold regular meetings through mechanisms like Joint Commission Meeting, Foreign Office Consultations, Joint Working Groups. New platforms like Bilateral Maritime Dialogue and Cyber Security Dialogue established. Naval Academies and National Defence Universities of both nations to initiate cadet exchanges. Defence and Security India to assist Indonesia’s defence modernization and work together through the Joint Defence Cooperation Committee (JDCC). Collaboration on maritime safety, White Shipping Information Exchange (WSIE), IFCIOR in Gurugram. Strengthening security in Straits of Malacca and Singapore (SOMS), cooperation in Hydrography and Submarine Search and Rescue. India’s NSG to train Indonesian forces in counterterrorism. Trade and Development 2nd Working Group on Trade & Investment and 4th Biennial Trade Ministers’ Forum to tackle trade barriers. Review of ASEAN-India Trade in Goods Agreement by 2025. MoUs signed on Health Cooperation, Traditional Medicine, Digital Health and medical training programs. Renewable energy collaboration, joint projects in nickel, bauxite and biofuel development. Agreement on Transfer of Sentenced Persons and Consular Dialogue planned for early 2025. Signing of Cultural Exchange Programme (2025-2028) to preserve heritage, including Prambanan Temple Compounds.
Steps to Strengthen India-Indonesia Ties	Indonesia’s BRICS membership could enhance strategic collaboration. Indo-Pacific alignment through ASEAN’s AOIP and India’s IPOI. More engagement in ASEANplusone, EAS and ARF to enhance regional cooperation. BIMSTEC membership for Indonesia to integrate it with India’s eastern neighborhood.

 

PRACTICE QUESTION Q.India-Indonesia ties exemplify strategic cooperation in trade, security and regional stability. Analyze their evolution, current status and future prospects.

How strong is India-Indonesia trade relations?

Bilateral trade stands at $30 billion, with potential to quadruple in the next decade. India exports engineering goods, petroleum and chemicals, while Indonesia supplies mineral fuels, vegetable oils and metals.

What are the key areas of India-Indonesia defense cooperation?

The Comprehensive Strategic Partnership (2018) enhances maritime security, counterterrorism and joint military exercises like Garuda Shakti and Samudra Shakti.

Why is Indonesia’s BRICS invitation important for India-Indonesia ties?

It strengthens South-South cooperation, enhances global economic alignment and expands strategic collaboration in trade and energy.

What role does India play in Indonesia’s energy transition?

India and Indonesia collaborate on renewable energy, biofuels and critical minerals (nickel, bauxite) to drive a clean energy future.

How does India-Indonesia maritime security cooperation impact the Indo-Pacific?

Both nations work on Straits of Malacca security, white shipping information exchange and naval cadet exchanges to ensure regional stability.

What agreements were signed during President Prabowo’s India visit?

MoUs covered trade expansion, cybersecurity, defense modernization, renewable energy, cultural exchange and health sector cooperation.

Source:

The Hindu