India-Indonesia

Indonesian President Prabowo Subianto will be the chief guest at India’s Republic Day celebrations in 2025. This is his first visit to India as the Head of State. This visit highlights the growing relationship between India and Indonesia in defence, trade, and cultural exchanges.

Key Focus of President Prabowo Subianto's Visit

During his visit to India, President Prabowo Subianto of Indonesia is expected to focus on a few key areas to further enhance bilateral ties:

• Defence and Security Cooperation:
  • Brahmos Missiles Sale: The $450 million deal for the sale of Brahmos supersonic missiles is a top priority. This will significantly strengthen military ties.
  • Maritime Security: Focus on increasing military and maritime security cooperation between the two countries.
  • Joint Exercises and Patrols: Furthering cooperation through joint military exercises and maritime patrols to maintain stability in the Indo-Pacific region.
• Trade and Economic Cooperation: Both countries will explore new avenues for trade and investment, especially in sectors like energy, infrastructure, and digital technology.
• Cultural and People-to-People Engagement: With 6,00,000 Indian tourists visiting Bali, the focus will be on boosting tourism and strengthening people-to-people ties. Educational and cultural exchanges will also be a focus, with continued collaboration in education and healthcare.
• Regional and Global Cooperation: The visit will provide a platform to discuss regional issues, including cooperation in regional security and the Indo-Pacific region.
  • Indonesia's role in regional groupings like BRICS will also be a point of discussion, especially in light of global geopolitical shifts.

Current Status of India-Indonesia Relations

• India and Indonesia share a strong and growing relationship, which spans multiple areas, including defence, trade, cultural exchange, and regional security. The relationship has evolved significantly in recent years, with both countries deepening their cooperation under the framework of a Comprehensive Strategic Partnership established in 2018.
• Cultural Relations: Indian religions, such as Hinduism and Buddhism, along with Sanskrit language, greatly influenced Indonesia, particularly from the 1st to the 14th centuries.
  • Indonesian kingdoms, like the Srivijaya Empire (7th to 13th century)and the Majapahit Empire (1293-1527), were heavily influenced by Indian culture, literature, and religion. These empires maintained maritime trade routes with India.
  • The stories from Indian epics, particularly the Ramayana and Mahabharata, also have a significant place in Indonesian art, drama, and folklore.
• Key Areas of Cooperation:
  • Defence and Security: India and Indonesia engage in joint military exercises like Garuda Shakti (Army) and Samudra Shakti (Navy).
    • Their navies have been conducting joint patrols in the Indian Ocean since 2002 under the India-Indonesia Coordinated Patrol (CORPAT).
    • India is in talks to sell Brahmos supersonic missiles to Indonesia, strengthening defence ties.
  • Trade and Investment: Bilateral trade reached $29.40 billion in 2023-24, and India's investments in Indonesia total approximately $1.56 billion. Both countries have robust economic engagement in sectors like infrastructure, automotive, banking, and pharmaceuticals.
    • Indonesia is India’s second-largest trading partner in the ASEAN (Association of Southeast Asian Nations) region.
  • People-to-People Connectivity: Direct flight connections between India and Indonesia began in 2023, making travel easier. India has become the second-largest source of tourists to Bali, with over 6,00,000 tourists visiting in 2023-24.
  • Space Cooperation: Both countries have strong collaboration in space technology, with ISRO providing satellite tracking through stations in Papua, Indonesia.

Why Indonesia is Important for India?

• Strategic Location & Maritime Security: Indonesia’s proximity to India, especially with the Andaman Islands located just 100 km from Indonesia’s Aceh province, enhances cooperation in maritime security. Both countries collaborate on issues like marine pollution, overfishing, and maritime security management in the Indo-Pacific region.
• Shared Vision for a Stable Indo-Pacific: Both India and Indonesia support a free, inclusive, and rules-based Indo-Pacific, emphasizing ASEAN centrality. They share concerns over regional security, particularly regarding China’s influence, and cooperate on regional security issues.
• Economic and Trade Ties: Indonesia is India’s largest trading partner in ASEAN. Indonesia is 40% of ASEAN territory, 40% of ASEAN market, and 40% of its population.
• Natural complement to India’s growing manufacturing industry:Indonesia’s mineral-rich economy is among the world’s major exporters of thermal coal, rubber, palm oil, nickel (essential for EV batteries), and tin, as well as a substantial exporter of natural gas.
• Climate Change & Blue Economy Cooperation: Both nations face climate challenges and are committed to net-zero emissions (India by 2070, Indonesia by 2060). They can collaborate on renewable energy projects, especially solar and wind energy. Indonesia is also a leader in the blue economy, and both countries have opportunities to work together on marine resources and sustainable ocean use.
• Technology & Digital Cooperation: Both India and Indonesia are digitally advanced and can collaborate on cybersecurity, e-governance, and digital infrastructure. India’s expertise in Digital Public Infrastructure (DPI) offers support for Indonesia’s own digital transformation.
• Cultural & People-to-People Ties: The strong cultural links between India and Indonesia, along with a growing Indian diaspora and tourism, help strengthen mutual understanding and people-centric cooperation.
• Geopolitical Significance: As Indonesia joins BRICS, it boosts India’s influence in multilateral forums. Indonesia's key role in ASEAN aligns with India’s Act East Policy, making it an essential partner for regional and global influence.