India-Indonesia Relations

India-Indonesia Relations

Chief Guest at India’s 76th Republic Day
Marking the 75th anniversary of diplomatic ties between India and Indonesia, the President of Indonesia was honored as the Chief Guest at India’s 76th Republic Day celebrations. Both nations signed multiple Memorandums of Understanding (MoUs) in critical areas such as health, digital infrastructure, and defense cooperation, showcasing their commitment to deeper engagement.

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Key Aspects of India-Indonesia Relations
1. Comprehensive Strategic Partnership
Elevated to a Comprehensive Strategic Partnership in 2018, both nations have reaffirmed their commitment to strengthening bilateral relations, focusing on multifaceted collaboration.
2. Defense Collaboration
India and Indonesia aim to bolster defense ties through joint initiatives, including:

• Coordinated Patrols (CORPAT): Enhancing maritime security.
• Joint Military Exercises: Ex Garuda Shakti (Army) and Ex Samudra Shakti (Navy).
• New Dialogues: Establishing Bilateral Maritime Dialogue and Cyber Security Dialogue to address emerging challenges.

3. Trade and Economic Cooperation
Bilateral trade between India and Indonesia has grown significantly, reaching USD 38.8 billion in 2022-23. Efforts are underway to:

• Resolve trade barriers.
• Expedite the review of the ASEAN-India Trade in Goods Agreement (AITIGA).
• Implement Local Currency Settlement Systems to facilitate trade in national currencies.

4. Energy and Health Security
Joint efforts in biofuels and the exploration of critical minerals like nickel and bauxite aim to ensure energy security. Agreements in health cooperation focus on:

• Digital health innovation.
• Building capacity among healthcare professionals.
• Quality assurance in traditional medicine.

5. Technological Cooperation
India has offered to share its expertise in advanced technologies, including:

• Digital Public Infrastructure.
• Quantum Communication.
• High-Performance Computing.

6. Cultural Cooperation
India has proposed to assist in restoring Indonesia’s historic Prambanan Temple. The two nations reaffirmed their commitment to the Kashi Cultural Pathway, focusing on heritage restoration and the repatriation of cultural artifacts.

7. Multilateral Collaboration
India and Indonesia emphasized their shared vision for the Indo-Pacific, aligning on initiatives such as:

• ASEAN Outlook on the Indo-Pacific.
• India-Indonesia-Australia Trilateral Cooperation.
• Indo-Pacific Oceans Initiative (IPOI).
  Both nations also collaborate in regional and global forums, including BRICS and the Indian Ocean Rim Association (IORA).

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Historical Evolution of India-Indonesia Ties
1. Post-Independence Era (1940s-50s)
India, under Prime Minister Jawaharlal Nehru, actively supported Indonesia’s independence movement against Dutch colonial rule.

• The Treaty of Friendship was signed in 1951.
• Both nations championed anti-colonialism and participated in landmark events like the Bandung Conference (1955) and the formation of the Non-Aligned Movement (NAM).

2. Period of Strain (1960s)
Relations soured during the Sino-Indian War (1962), as Indonesia maintained friendly ties with China. Indonesia also supported Pakistan during the 1965 India-Pakistan conflict.

3. Cold War Realignment (1966-1980s)
Under President Suharto, Indonesia distanced itself from China and rebuilt ties with India. Key milestones include:

• The 1977 Maritime Boundary Pact.
• Suharto’s visit to India in 1980.

4. Look East and Act East Policies (1990s-Present)
India’s Look East policy in 1991 and the subsequent Act East policy in 2014 strengthened ties with Indonesia as a key ASEAN partner. Bilateral trade surged from USD 4.3 billion (2005-06) to USD 38.8 billion (2022-23).

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Indonesia’s Strategic Importance to India
1. Geo-Strategic Location
Indonesia’s control over crucial maritime chokepoints like the Strait of Malacca, Sunda Strait, and Lombok Strait makes it a pivotal partner for India in ensuring maritime security and trade stability.

2. Resource-Rich Nation
Indonesia’s wealth of natural resources—including palm oil, coal, rubber, and critical minerals like nickel—offers significant opportunities for India in energy, agriculture, and infrastructure.

3. Defense Cooperation
Ongoing negotiations for a USD 450 million BrahMos missile deal reflect deepening defense collaboration. This partnership addresses shared concerns, including maritime security, counter-terrorism, and cyber threats.

4. Shared Political Values
Indonesia, with the world’s largest Muslim population, upholds secularism through its Panchashila Constitution. Its successful counter-terrorism strategies provide valuable lessons for India.

5. Regional Leadership
As a prominent ASEAN member and a key player in Indo-Pacific geopolitics, Indonesia is crucial for India’s vision of regional stability and multilateral cooperation.

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Key Takeaways
India and Indonesia’s partnership is central to ensuring peace, stability, and prosperity in the Indo-Pacific. Strengthened by shared historical ties and a commitment to mutual growth, both nations are poised to deepen their collaboration in trade, technology, defense, and cultural preservation. This enduring partnership underscores the significance of their Comprehensive Strategic Partnership in shaping the regional and global order.

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