Bridging Nations: The Growing Partnership Between India and Indonesia

Evolution of India – Indonesia Bilateral Relations:

Areas of Cooperation:

1. Maritime Security: Joint naval exercises (e.g., Samudra Shakti, IND-INDO CORPAT) to enhance interoperability and address piracy, terrorism, and other maritime threats.
2. Defense & Security:
Strategic Partnership: Joint military training, technology sharing, and defence exports (e.g., BrahMos, Light Combat Aircraft).
Military Engagements: Increased naval operations like INS Sindhukesari’s operational turnarounds.
3. Trade & Economic Cooperation: Bilateral trade reached USD 38.85 billion in 2022-23, with strong ties in energy (coal, palm oil) and infrastructure, including Sabang Port development.
4. Cultural & People-to-People Ties: Shared cultural history through the Ramayana and Mahabharata; cultural exchanges via the Swami Vivekananda Cultural Centre.
5. Education & Capacity-Building: Capacity-building programs like ITEC and scholarships for Indonesian students in India. Humanitarian support, such as Operation Samudra Maitri post-2018 earthquake and tsunami.
6. Regional & Multilateral Cooperation: Active participation in forums like ASEAN, IORA, G20, and East Asia Summit, focusing on maritime security, trade, and climate change.
7. Science & Technology: Collaboration in space, IT, and green tech; alignment on climate action and the International Solar Alliance.
8. Climate Change & Sustainability: Joint initiatives on renewable energy, climate resilience, and disaster management.

Significance of Indonesia for india:

1. Strategic Partner: Key to India’s Indo-Pacific vision, supporting free, open, and inclusive maritime security, especially through multilateral forums (EAS, IORA).
2. Maritime Security & Connectivity: Critical for securing shipping lanes, with initiatives like Sabang Port improving access to the Malacca Strait.
3. Economic Cooperation: Major trade partner, with USD 38.85 billion in trade; significant supplier of coal and palm oil.
4. Defense Ties: Joint naval exercises and defence exports, including BrahMos missiles.
5. Cultural Ties: Shared history, especially through Ramayana and Mahabharata; cultural centres foster bilateral exchanges.
6. Counterbalance to China: Helps India mitigate China’s growing influence in the region.

Raising concern in India -Indonesia Relations:

1. Trade Imbalance: India’s trade deficit with Indonesia was USD 21 billion in 2022-23, with imports (mainly coal and palm oil) outpacing exports.
2. Regulatory Hurdles: Different defence acquisition processes hinder joint ventures and defence cooperation.
3. China’s Influence: Indonesia’s involvement in China’s Belt and Road Initiative (e.g., high-speed rail projects) raises concerns for India.
4. Connectivity Issues: Limited air connectivity (20 flights/week) and visa challenges restrict business and tourism exchanges.
5. Political Focus: Indonesia’s ASEAN-centric approach sometimes diverts attention from deeper bilateral engagement with India.
6. Economic Underutilization: Bilateral trade potential is USD 61 billion, but current trade is underperforming at USD 38.85 billion.
7. Defense Delays: Joint defence projects, like BrahMos missiles, face slow progress due to differing procurement systems.
8. Environmental Concerns: Palm oil imports from Indonesia face criticism over deforestation, impacting the trade relationship.

Way to strengthen bilateral ties: 

1. Boost Trade & Investment: Fast-track CEPA and explore new sectors like IT, renewable energy, and manufacturing.
2. Defense Cooperation: Expand joint military exercises, technology transfer, and maritime security initiatives.
3. Improve Connectivity: Enhance direct flights, ease visa processes, and develop port infrastructure like Sabang.
4. Cultural Exchanges: Promote shared cultural heritage, yoga, and religious exchanges, fostering people-to-people links.
5. Tech & Research Collaboration: Partner on R&D and technology projects in areas like renewable energy and healthcare.
6. Maritime Security: Expand initiatives like IND-INDO CORPAT and Samudra Shakti to strengthen regional security.
7. Multilateral Engagement: Collaborate more within ASEAN, IORA, and the East Asia Summit on security and growth.
8. Sustainable Development: Work on climate change, disaster resilience, and joint projects under the International Solar Alliance.

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Conclusion

India-Indonesia relations have grown strong, focusing on defence, trade, maritime security, and cultural exchange. Despite challenges like trade imbalances, regulatory issues, and Indonesia’s ties with China, both countries have maintained close cooperation on regional platforms like ASEAN and G20. To strengthen ties, efforts should focus on fast-tracking the CEPA, expanding defence and trade collaboration, improving connectivity, and enhancing cultural ties. Increased cooperation in renewable energy and technology will unlock further potential, solidifying their role as key Indo-Pacific partners.