Partners in Progress: India and Indonesia’s Expanding Ties

Context: 

India and Indonesia share a deep-rooted historical, cultural, and strategic relationship that dates back centuries. These ties have evolved significantly in modern times, with both nations engaging in economic, defense, and diplomatic cooperation.

A recent milestone in this relationship was Indonesia’s President Prabowo Subianto’s visit as the chief guest at India’s 76th Republic Day celebrations. This event underscored the growing strategic partnership between the two countries. Notably, this was not the first time an Indonesian leader had been honored in this way—Indonesia’s first President, Sukarno, was the chief guest at India’s first Republic Day in 1950.

Both nations, as emerging global powers, have the potential to shape the future of the Indo-Pacific region through economic collaboration, defense cooperation, and multilateral engagement.

Key Areas of Cooperation

1. Economic Collaboration: Unlocking Growth Potential

• Bilateral trade between India and Indonesia currently stands at $30 billion, with ambitions to quadruple this figure in the next decade.
• India is among Indonesia’s top trading partners, importing coal, palm oil, and minerals while exporting refined petroleum, pharmaceuticals, and engineering goods.
• Investment flows remain underutilized:
  • Indonesian investment in India: $653.8 million
  • Indian investment in Indonesia: $1.56 billion
• Fast-growing economies:
  • India’s projected GDP growth: 6.5%
  • Indonesia’s projected GDP growth: 5.1%
  • Both surpass the global average of 3.3%, creating significant opportunities for investment and trade.

2. Defense and Maritime Security Cooperation

• In 2018, India and Indonesia signed the Comprehensive Strategic Partnership Agreement, significantly boosting defense ties.
• Key joint military exercises:
  • Samudra Shakti: Naval exercises to enhance maritime security.
  • Coordinated Patrols (CORPAT): Ensuring safety in the Indian Ocean.
• Strategic importance of the Malacca Strait: A crucial trade route, where both nations work together to safeguard freedom of navigation.
• Discussions during President Prabowo’s visit emphasized counterterrorism, cybersecurity, and defense technology cooperation.

3. Cultural and Historical Ties

• Shared heritage: Hinduism and Buddhism have influenced Indonesian history, with Indian epics like the Ramayana and Mahabharata widely celebrated.
• The Bali Yatra festival in India commemorates ancient maritime trade between Odisha and Indonesia.
• Growing people-to-people connections: Over 650,000 Indian tourists visited Bali in 2023.

4. Geopolitical and Multilateral Engagement

• Indonesia recently joined BRICS, where it now collaborates with India on global economic and strategic issues.
• Both nations engage in key multilateral forums: ASEAN, G20, United Nations, and BRICS.
• Shared diplomatic vision: Balancing partnerships with the U.S., China, and other global powers while maintaining regional stability.

5. Expanding Cooperation in Emerging Sectors

• Renewable Energy: Joint efforts in solar, bioenergy, and geothermal exploration.
• Technology and Space Collaboration: India’s ISRO supports Indonesia’s satellite programs.
• Healthcare and Education: Scholarships for Indonesian students and hospital management training programs.

Conclusion:

India and Indonesia’s partnership is built on strong historical ties, economic collaboration, and security cooperation. With both countries playing vital roles in the Indo-Pacific region, their growing alliance can contribute to global trade, defense, and diplomacy.

As two of the fastest-growing economies, they have the potential to drive sustainable growth, enhance regional security, and strengthen their influence in multilateral forums. By expanding cooperation in trade, defense, energy, and technology, India and Indonesia can set an example of a modern, forward-looking strategic partnership.

Their evolving relationship is not just about diplomacy—it is about shaping the future of the region and the world.