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India-Indonesia's Growing Partnership
India and Indonesia, two important maritime neighbors, are strengthening their ties, highlighted by the visit of Indonesian President Prabowo Subianto to India later this month. Subianto has been invited to be the Chief Guest at India's Republic Day on 26th January 2025, a prestigious honor that India reserves for countries with whom it shares strong and close relations.
Key Points on the Historical and Current Relations:
- Historical Ties: The relationship between India and Indonesia dates back centuries, with deep cultural and religious influences. 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.
- Ties Since Independence:
- India and Indonesia, both large nations from the Global South, have shared goals of political sovereignty and economic self-sufficiency since gaining independence.
- In 1955, the Bandung Conference in Indonesia, hosted by President Sukarno, was a significant event aimed at promoting cooperation between newly independent nations of Africa and Asia. It also laid the foundation for the Non-Aligned Movement (NAM), which sought to keep countries out of Cold War politics. Jawaharlal Nehru, India’s first Prime Minister, played a key role in this movement.
- Trade Relations:
- Indonesia is India’s second-largest trading partner in the ASEAN (Association of Southeast Asian Nations) region.
- Bilateral trade between the two nations has grown substantially from USD 4.3 billion in 2005-06 to USD 38.84 billion in 2022-23 and USD 29.40 billion in 2023-24.
- India is the second-largest importer of coal and the largest importer of crude palm oil from Indonesia. India also imports minerals, rubber, pulp and paper, and hydrocarbons.
- India has invested about USD 1.56 billion in 7,292 projects in Indonesia between 2000-2024, with around 100 joint ventures operating there.
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