India-Indonesia: Uniting Through History, Security, and Trade

Context:

Indonesian President Prabowo Subianto has arrived in India ahead of the 76th Republic Day celebrations in New Delhi, where he will be the chief guest. This visit marks a significant moment in the evolving bilateral relationship between India and Indonesia, which has been built on a foundation of historical, cultural, economic, and strategic ties.

India – Indonesia Bilateral Relationship

Historical and Cultural Bonds:

• India and Indonesia share a relationship that spans over two millennia, deeply rooted in cultural and historical ties.
• Hinduism, Buddhism, and later Islam traveled to Indonesia from India, shaping its religious and cultural landscape.
• The epics Ramayana and Mahabharata have significantly influenced Indonesian art, folklore, and culture, creating a unique connection between the two nations.
• Post-independence, both nations aspired for political sovereignty, economic self-sufficiency, and independent foreign policies, which led them to become strong advocates in the Non-Aligned Movement.

Strategic and Diplomatic Engagements:

High-Level Visits and Agreements:

• 2018: Prime Minister Narendra Modi's visit to Jakarta led to the signing of the Comprehensive Strategic Partnership, highlighting a shared vision for Indo-Pacific maritime cooperation.
• 2024: Prime Minister Modi and President Prabowo Subianto held discussions during the G20 Summit, emphasizing economic and security cooperation, strengthening mutual commitments to regional stability and economic growth.

Key takeaways:

• India and Indonesia are committed to strengthening their partnership through regular high-level engagements and agreements.
• Their discussions underscore the importance of a stable and cooperative relationship in the Indo-Pacific region.

Defense and Security Cooperation:

India and Indonesia have a long-standing defense relationship that was formalized in 1951 and has been strengthened through further agreements in 2001 and 2018. Key initiatives include:

• Joint Military Exercises: Exercises such as Garuda Shakti (Army), Samudra Shakti (Navy), and coordinated patrols like IND-INDO CORPAT.
• Defense Industry Collaboration: The India-Indonesia Defense Industry Exhibition held in 2024 highlighted opportunities for cooperation in defense technology and manufacturing.
• These efforts demonstrate the shared concerns over regional security, particularly in the Indo-Pacific.

Economic and Trade Relations:

Bilateral Trade:

• Indonesia is India’s second-largest trading partner in the ASEAN region, with trade valued at $29.4 billion in 2023-24. Major trade includes:
  • Indian Imports: Coal, crude palm oil, and rubber from Indonesia.
  • Indian Exports: Refined petroleum, telecommunication equipment, and agricultural products to Indonesia.

Investment and Connectivity:

• Indian Investments: Indian businesses have invested over $1.56 billion in sectors such as mining, textiles, and infrastructure in Indonesia.
• Connectivity Boost: The establishment of direct flights between major cities like Mumbai-Jakarta and Delhi-Bali has enhanced tourism and people-to-people ties.

Key takeaway:

• Economic and trade relations continue to grow, with both nations benefiting from enhanced investment and connectivity.

Cultural and Educational Collaboration:

• Cultural Engagement: India operates two cultural centers in Jakarta and Bali, promoting Indian cultural practices such as yoga, classical dance, and music, which foster mutual understanding.
• Educational Cooperation: Indonesia is a major recipient of Indian scholarships through programs like ITEC and ICCR, with discussions ongoing for higher education MoUs to strengthen knowledge-sharing and academic cooperation.

Multilateral Cooperation:

• India and Indonesia actively collaborate in multilateral forums such as G20, ASEAN, and IORA (Indian Ocean Rim Association).
• Their partnership extends to issues like maritime security, sustainable development, and regional stability.

Future Prospects:

In 2024, India and Indonesia commemorate 75 years of diplomatic relations, which reflects both nations’ shared history and a forward-looking partnership.

Key Focus Areas:

• Strengthening trade, defense, and cultural cooperation.
• Continuing efforts to enhance regional stability and economic growth in the Indo-Pacific.

Conclusion:

The India-Indonesia bilateral relationship exemplifies a unique blend of historical camaraderie and strategic collaboration. As two vibrant democracies and emerging economies, their partnership plays a key role in shaping both regional and global affairs. With shared values and mutual respect, India and Indonesia continue to deepen their ties, ensuring a prosperous and peaceful future together. Their evolving relationship stands as a model for global cooperation and mutual growth.