India – Indonesia
Kartavya Desk Staff
Syllabus: International Relations
Source: IE
Context: Indonesian President Prabowo Subianto visits India for the 76th Republic Day celebrations on January 26, 2025, his official visit aims to deepen cooperation in economic, defense, cultural, and strategic domains.
Historical Background:
• Early Civilizational Ties: India and Indonesia share millennia-old cultural and trade links, reflected in shared religious traditions of Hinduism and Buddhism and the maritime legacy of festivals like Bali Yatra.
• Modern Diplomatic Relations: Formal diplomatic ties were established in 1950, followed by the Treaty of Friendship in 1951 and joint participation in the Bandung Conference of 1955, laying the foundation for the Non-Aligned Movement.
• Strategic Partnership: The relationship was elevated to a Strategic Partnership in 2005, further enhanced to a Comprehensive Strategic Partnership in 2018, focusing on economic and security collaboration.
• Act East Policy: Indonesia’s inclusion in India’s Act East Policy (2014) highlights its importance in India’s regional engagement strategy.
Positives in India-Indonesia Relations:
• Economic Cooperation: Bilateral trade reached $29.4 billion in FY 2023-24, with plans to increase it to $50 billion by 2025. India is a key importer of Indonesian coal and palm oil.
• Example: India’s $1.56 billion investments in Indonesian sectors like infrastructure and textiles.
• Strategic and Defense Collaboration: Joint military exercises like Samudra Shakti and IND-INDO CORPAT enhance maritime security in the Indian Ocean.
• Example: Defense Cooperation Agreement (2018) facilitates regular military exchanges and joint patrols.
• Cultural Ties: Shared traditions of Hinduism and Buddhism foster cultural diplomacy, while events like the participation of an Indonesian contingent in India’s Republic Day Parade strengthen people-to-people ties.
• Connectivity and Tourism: Direct flights introduced in 2023 have boosted tourism, making India the second-largest source of international tourists to Bali.
• Space and Healthcare Collaboration: ISRO supports Indonesia’s satellite missions, and Indian hospitals like Apollo are investing in Indonesia’s healthcare infrastructure.
Challenges in Bilateral Ties:
• Trade Imbalance: Indonesia’s trade volume with China ($139 billion in 2023) far outpaces its trade with India, highlighting underutilized potential.
• Example: India’s dependence on limited imports like palm oil and coal lacks diversification.
• Geopolitical Competition: Regional tensions in the Indo-Pacific and Indonesia’s partnerships with other nations pose strategic challenges.
• Maritime Security Threats: The shared maritime domain faces threats like piracy, illegal fishing, and geopolitical tensions, requiring enhanced cooperation.
• Limited Investment: Despite improving economic ties, India’s investment in Indonesia remains modest compared to other regional players.
• Bureaucratic Hurdles: Regulatory challenges in both countries slow down joint infrastructure and trade projects.
Way Ahead:
• Boost Economic Diversification: Expand bilateral trade to include technology, renewable energy, and agriculture.
• Enhance Defense Cooperation: Strengthen joint maritime security initiatives under India’s SAGAR framework and expand military exercises.
• Leverage Connectivity: Promote business and tourism through expanded flight networks and cultural exchanges.
• Focus on Green Energy: Collaborate on renewable energy projects to address climate goals and energy security.
• Deepen People-to-People Ties: Strengthen educational exchanges through scholarships like ITEC and promote Indian diaspora contributions to bilateral cooperation.
Conclusion:
India and Indonesia’s multifaceted partnership stands as a cornerstone of regional security, economic growth, and cultural diplomacy. With shared civilizational ties and strategic alignment, both nations are poised to enhance their global and regional influence. Strengthened collaboration will not only boost bilateral ties but also contribute significantly to Indo-Pacific stability.
Insta Links:
• A-decade-of-Indias-act-east-policy
• How far are India’s internal security challenges linked with border management particularly in view of the long porous borders with most countries of South Asia and Myanmar? (UPSC-2013)