Contents
Introduction
Middle powers like India, Indonesia, and Australia forge flexible coalitions amid US policy flux and Chinese assertiveness, creating G-Minus-Two hedging. Economic Survey 2025-26 notes supply chain resilience needs; Budget 2026-27 boosts maritime tech.
Rise of Middle-Power Agency in the Indo-Pacific
The G-Minus-Two concept reflects an Indo-Pacific order increasingly shaped not solely by the United States and China, but by capable middle powers India, Indonesia, Australia, Japan, Singapore and ASEAN members that pursue strategic autonomy, issue-based coalitions and rules-based regionalism rather than bloc politics.

How Middle Powers are Shaping the G-Minus-Two Dynamic
- Strategic Hedging over Binary Alignment: Avoid choosing between China’s economic weight and America’s security umbrella. Build diversified strategic partnerships to maximize policy autonomy. Example: India–Singapore CSP.
- Rise of Minilateralism: Flexible coalitions complement larger multilateral institutions. Faster decision-making on maritime security, supply chains and HADR. Examples: Quad, IPEF, India-Australia-Indonesia.
- Maritime Rules-Based Order: Collective defence of UNCLOS-1982, freedom of navigation and EEZ rights. Push for an effective South China Sea Code of Conduct. Example: ASEAN diplomacy.
- Supply Chain Resilience: Diversification of semiconductors, critical minerals and trusted manufacturing. Reduces vulnerability to geopolitical coercion. Example: Indo-Pacific supply chains.
- Defence & Technology Partnerships: Joint exercises, missile cooperation and defence industrial collaboration strengthen indigenous capabilities. Example: BrahMos diplomacy.
- Strengthening Regional Multilateralism: Middle powers reinforce ASEAN centrality rather than replacing it. Promote inclusive regional architecture. Example: East Asia Summit.
Indonesia’s Strategic Centrality
- Geographic Pivot of the Indo-Pacific: Sits at the confluence of the Indian and Pacific Oceans. Controls Malacca, Sunda and Lombok Straits—critical Sea Lines of Communication (SLOCs). Example: Malacca Strait.
- Guardian of Global Maritime Trade: Significant share of global trade and East Asian energy imports transit Indonesian waters. Stability directly influences Indo-Pacific commerce. Example: Energy security.
- Champion of ASEAN Centrality: Principal architect of the ASEAN Outlook on the Indo-Pacific (AOIP). Promotes inclusiveness over bloc confrontation. Example: AOIP.
- Practitioner of Strategic Hedging: Maintains defence ties with the US, economic engagement with China and strategic cooperation with India, Japan and Australia. Preserves diplomatic flexibility. Example: Free & Active Policy.
- Maritime Law Enforcement: Firmly safeguards EEZ around the Natuna Islands against illegal incursions. Demonstrates lawful assertion without escalation. Example: Natuna patrols.
- India’s Natural Maritime Partner: Sabang-Andaman connectivity, maritime domain awareness and defence cooperation enhance Indian Ocean security. Recent agreements further deepen strategic convergence.
Challenges to the G-Minus-Two Framework
- ASEAN internal divisions.
- Economic dependence on China.
- Uncertain US strategic commitment.
- Limited defence interoperability.
- Resource asymmetry among middle powers.
- Risk of fragmented minilateralism.
Way Forward
- Strategic: Institutionalise India–Indonesia–Australia Trilateral Dialogue. Example: Maritime trilateral.
- Maritime: Integrate IFC-IOR with Indonesia’s Bakamla for real-time Maritime Domain Awareness. Example: White shipping.
- Economic: Expand resilient semiconductor, digital and critical mineral partnerships. Example: Trusted supply chains.
- Defence: Accelerate Sabang Port development, coordinated naval patrols and HADR exercises. Example: Sabang connectivity.
- Institutional: Strengthen ASEAN-led mechanisms while ensuring minilateral initiatives remain complementary. Example: ADMM-Plus.
- Blue Economy: Joint cooperation in fisheries, marine conservation and disaster resilience. Example: Coral restoration.
Conclusion
Echoing vision of MAHASAGAR doctrine’s, belief in cooperative security, empowered middle powers can preserve an inclusive, stable and multipolar Indo-Pacific through partnership, not polarization.

