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29-January-2025-Editorial

January 29 @ 7:00 am - 11:30 pm

INDIA-INDONESIA TIES

Indonesia has been an important partner for India for decades, with both countries enjoying a rich and multifaceted relationship. With the recent signing of several memorandums of understanding (MoUs), including a defense collaboration pact and trade cooperation agreements, the relationship between India and Indonesia continues to grow, focusing on mutual benefits and shared goals.

                  

Key Highlights of India-Indonesia Relations

Comprehensive Strategic Partnership

  • The relationship was upgraded to a Comprehensive Strategic Partnership in 2018, marking a significant step in enhancing bilateral ties.
  • Both nations have reaffirmed their commitment to advancing this partnership by focusing on defense cooperation, trade, technology, and cultural exchange.

Defense Cooperation

  • Indonesia and India have committed to strengthening their defense ties, including joint military exercises like Ex Garuda Shakti (Army) and Ex Samudra Shakti (Naval).
  • Both countries have agreed to establish key dialogues on maritime security and cyber threats, enhancing cooperation in defense and security.

Trade and Economic Cooperation

  • Bilateral trade reached USD 38.8 billion in 2022-23, with both countries striving to address trade barriers and expedite the review of the ASEAN-India Trade in Goods Agreement (AITIGA).
  • An MoU on local currency settlement systems was signed to encourage trade transactions in local currencies, reducing dependency on foreign exchange and enhancing economic ties.

Energy and Health Cooperation

  • Both countries are focused on energy cooperation, particularly in biofuels, as well as joint exploration of critical minerals such as nickel and bauxite.
  • Health cooperation agreements have been signed to improve healthcare infrastructure and digital health in both countries. This includes quality assurance in traditional medicine.

Technological Cooperation

  • India has offered to share expertise with Indonesia in emerging technologies such as digital public infrastructure, quantum communication, and high-performance computing.
  • This technological collaboration is intended to boost innovation and drive growth in both nations, particularly in the digital economy.

Cultural Cooperation

  • As part of the cultural collaboration, India has committed to helping restore the Prambanan Temple in Indonesia, a symbol of shared cultural heritage.
  • The Kashi Cultural Pathway, highlighted during the G20 Culture Ministers’ meeting, emphasizes the return of cultural artifacts and restoration of heritage structures to their countries of origin.

Multilateral Cooperation

  • Both nations emphasized the importance of ASEAN’s central role in regional geopolitics and have committed to cooperating on multilateral issues like the ASEAN Outlook on the Indo-Pacific, India-Indonesia-Australia Trilateral, and Indo-Pacific Oceans Initiative (IPOI).
  • They also support regional stability through organizations like BRICS and the Indian Ocean Rim Association (IORA).

Evolution of India-Indonesia Relations

Early Post-Independence (1940s-1950s)

  • India played a critical role in supporting Indonesia’s independence from Dutch colonial rule under the leadership of Prime Minister Jawaharlal Nehru.
  • Both countries signed a Treaty of Friendship in 1951, laying the foundation for cooperation in trade, military, and cultural spheres.
  • They aligned on anti-colonialism and non-alignment, significantly participating in the 1955 Bandung Conference and the formation of the Non-Aligned Movement (NAM) in 1961.

Relations in the 1960s

  • Relations between India and Indonesia deteriorated due to India’s tensions with China post-1962, while Indonesia maintained cordial relations with China.
  • Indonesia’s support for Pakistan during the 1965 India-Pakistan conflict further strained ties, despite past cooperation.

Cold War Era (1966-1980s)

  • Under President Suharto, Indonesia began to distance itself from China, seeking to restore relations with India.
  • Key agreements during this period included the 1977 maritime boundary agreement and President Suharto’s 1980 visit to India.

Look East Policy (1990s)

  • India’s ‘Look East Policy’ introduced in 1991 fostered growing trade and cultural cooperation, strengthening bilateral ties.
  • Indonesia became a key partner in India’s broader Southeast Asia strategy, focusing on economic, security, and cultural collaboration.

Recent Developments (2000s-Present)

  • Indonesia is now India’s second-largest trading partner in the ASEAN region, with bilateral trade expanding from USD 4.3 billion in 2005 to USD 38.8 billion in 2022-23.
  • Both countries jointly call for resolving maritime disputes and have supported the finalization of the South China Sea Code of Conduct based on international law, including the United Nations Convention on the Law of the Sea (UNCLOS).

Strategic Significance of Indonesia to India

Strategic Importance in the Indo-Pacific

  • Indonesia controls vital sea lanes, including the Strait of Malacca, Sunda, and Lombok, which are crucial for maritime security and global trade.
  • Indonesia’s geographic location in the heart of the Indo-Pacific makes it an indispensable partner for India in ensuring regional stability and maritime security.

Natural Resources and Economic Cooperation

  • Rich in resources such as palm oil, tin, nickel, rubber, and coal, Indonesia is a vital supplier for India’s energy, agriculture, and infrastructure sectors.
  • Growing defense cooperation, particularly the potential USD 450 million BrahMos missile deal, highlights the expanding trade and defense relations.

Defense and Security Collaboration

  • With the increasing threats in the region, the defense collaboration between India and Indonesia is becoming more significant, particularly with the planned BrahMos missile acquisition.
  • Both nations are strengthening their defense partnership to address cyber threats, maritime security challenges, and counter-terrorism.

Political and Governance Ties

  • Indonesia, with the world’s largest Muslim population, practices secularism, which offers valuable lessons for India in terms of governance.
  • The two countries face shared challenges such as terrorism, and Indonesia’s successful police-led counter-terrorism efforts serve as a model for India.

Global Influence and ASEAN Leadership

  • Indonesia plays a crucial role in ASEAN, enhancing its partnership with India and contributing to regional stability.
  • As an emerging power in the Indo-Pacific, Indonesia is pivotal for India’s regional strategy, particularly in multilateral forums like ASEAN and the Indo-Pacific Oceans Initiative (IPOI).

Conclusion

 Indonesia’s strategic, economic, and political significance to India cannot be overstated. As both countries continue to deepen their Comprehensive Strategic Partnership, they aim to address regional and global challenges together, with strong cooperation in trade, defense, technology, and cultural exchange. Indonesia’s role as a regional pivot and India’s trusted partner in the Indo-Pacific makes this relationship vital for ensuring regional peace, stability, and growth.

Details

Date:
January 29
Time:
7:00 am - 11:30 pm
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