{"id":325907,"date":"2025-02-06T16:27:47","date_gmt":"2025-02-06T10:57:47","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=325907"},"modified":"2025-02-06T18:11:38","modified_gmt":"2025-02-06T12:41:38","slug":"india-indonesia-relations","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-indonesia-relations\/","title":{"rendered":"India-Indonesia Relations- Explained Pointwise"},"content":{"rendered":"<p>Indonesian President <span style=\"color: #ff0000;\">Prabowo Subianto\u2019s visit to India as the chief guest for the 76th Republic Day<\/span> was a significant milestone in <strong>India-Indonesia relations<\/strong>. The two nations share deep historical, cultural, and trade ties. Notably, Indonesia\u2019s first President, Sukarno, was the chief guest at India\u2019s first Republic Day in 1950, underscoring their long-standing friendship.<\/p>\n<p>The Indonesian President\u2019s recent visit also led to the signing of several Memorandums of Understanding <span style=\"color: #ff0000;\">(MoUs) in health, digital infrastructure, <span style=\"color: #000000;\">and<\/span> defence cooperation<\/span>, further strengthening ties between the two Indo-Pacific democracies.<\/p>\n<figure id=\"attachment_325908\" aria-describedby=\"caption-attachment-325908\" style=\"width: 515px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-325908\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/India-Indonesia-relations.png?resize=515%2C373&#038;ssl=1\" alt=\"India- Indonesia relations\" width=\"515\" height=\"373\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/India-Indonesia-relations.png?w=583&amp;ssl=1 583w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/India-Indonesia-relations.png?resize=300%2C217&amp;ssl=1 300w\" sizes=\"auto, (max-width: 515px) 100vw, 515px\" \/><figcaption id=\"caption-attachment-325908\" class=\"wp-caption-text\">Source- ORF<\/figcaption><\/figure>\n<table style=\"height: 90px; width: 100%; border-collapse: collapse; border-style: solid;\">\n<tbody>\n<tr style=\"height: 30px;\">\n<td style=\"width: 100%; text-align: center; height: 30px;\"><strong>Table of Content<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 60px;\">\n<td style=\"width: 100%; height: 60px;\"><a href=\"#h1\">How have India-Indonesia Relations evolved over time?<\/a><br \/>\n<a href=\"#h2\">What are the key pillars of cooperation between India-Indonesia?<\/a><br \/>\n<a href=\"#h3\">What are the challenges in India- Indonesia relations?<\/a><br \/>\n<a href=\"#h4\">What should be the way forward?<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"color: #000000;\"><strong><a id=\"h1\"><\/a>How have India-Indonesia Relations evolved over time?<\/strong><\/span><\/h2>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid; background-color: #f0fffc;\">\n<tbody>\n<tr>\n<td style=\"width: 38.6061%;\"><strong>Early Post-Independence Period (1940s-1950s)<\/strong><\/td>\n<td style=\"width: 61.3939%;\">India played a crucial role in supporting Indonesia\u2019s struggle for independence from <span style=\"color: #ff0000;\">Dutch colonial rule<\/span>. Under Prime Minister Jawaharlal Nehru, India emerged as a strong advocate for Indonesia\u2019s freedom on the global stage. Key developments during this period included:<br \/>\n<strong>a. Treaty of Friendship (1951)<\/strong>: Strengthening cooperation in trade, culture, and military affairs.<br \/>\n<strong>b. Non-Alignment and Anti-Colonialism<\/strong>: Both nations were aligned on principles of non-alignment, peaceful coexistence, and anti-colonialism, leading to their active participation in the <span style=\"color: #ff0000;\">1955 Bandung Conference<\/span> and the <span style=\"color: #ff0000;\">formation of the Non-Aligned Movement (NAM) in 1961<\/span>.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38.6061%;\"><strong>Deterioration in Ties (1960s)<\/strong><\/td>\n<td style=\"width: 61.3939%;\">Despite early cooperation, India-Indonesia relations faced setbacks in the 1960s due to geopolitical shifts:<br \/>\n<strong>a. Sino-Indian Conflict (1962):<\/strong> India\u2019s ties with China worsened post the 1959 Tibetan uprising and the <span style=\"color: #ff0000;\">1962 war<\/span>, while Indonesia maintained <span style=\"color: #ff0000;\">cordial relations with China.<\/span><br \/>\n<strong>b. India-Pakistan Conflict (1965):<\/strong> Indonesia <span style=\"color: #ff0000;\">openly sided with Pakistan during the 1965 India-Pakistan war<\/span>, even providing military assistance to Pakistan, causing a strain in Indo-Indonesian ties.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38.6061%;\"><strong>Cold War Era (1966-1980s)<\/strong><\/td>\n<td style=\"width: 61.3939%;\">A shift in Indonesia\u2019s political landscape led to the gradual revival of ties:<br \/>\n<strong>a. President Suharto\u2019s Era<\/strong>: Indonesia distanced itself from China and sought to rebuild relations with India.<br \/>\n<strong>b. Maritime Boundary Agreement (1977):<\/strong> Strengthened cooperation in maritime affairs and regional security.<br \/>\n<strong>c. Suharto\u2019s Visit to India (1980):<\/strong> Marked a new phase of improved diplomatic relations between the two nations.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38.6061%;\"><strong>Look East Policy (1990s)<\/strong><\/td>\n<td style=\"width: 61.3939%;\">India\u2019s economic liberalization in the 1990s and the launch of the \u2018Look East\u2019 policy in 1991 significantly boosted Indo-Indonesian ties:<br \/>\n<strong>a. Expansion of Economic Ties<\/strong>: Trade and investment between the two countries witnessed substantial growth.<br \/>\n<strong>b. Comprehensive Partnership:<\/strong> Economic, security, and cultural cooperation became key aspects of bilateral relations.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38.6061%;\"><strong>Act East Policy and Recent Developments (Since 2000s)<\/strong><\/td>\n<td style=\"width: 61.3939%;\">With the launch of India\u2019s <span style=\"color: #ff0000;\">\u2018Act East\u2019 policy in 2014<\/span>, Indonesia emerged as a key regional partner. Notable advancements include:<br \/>\n<strong>a. Trade Relations<\/strong>: Indonesia is <span style=\"color: #ff0000;\">India\u2019s 2nd largest trading partner in ASEAN<\/span> (after Singapore), with trade growing from USD 4.3 billion in 2005-06 to US$ 29.40 billion in 2023-24.<br \/>\n<strong>b. Comprehensive Strategic Partnership (2018)<\/strong>&#8211; PM Modi&#8217;s visit to Jakarta led to the signing of the Comprehensive Strategic Partnership and a shared vision on Indo-Pacific maritime cooperation.<br \/>\n<strong>c. Maritime Cooperation<\/strong>: Both nations jointly advocate for the resolution of maritime disputes and the finalization of the <span style=\"color: #ff0000;\">South China Sea Code of Conduct<\/span> as per UNCLOS (United Nations Convention on the Law of the Sea).<br \/>\n<strong>d. Defense Cooperation<\/strong>: Indonesia is negotiating with India for the <span style=\"color: #ff0000;\">BrahMos missile system<\/span>, with an estimated deal worth USD 450 million.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"color: #000000;\"><strong><a id=\"h2\"><\/a>What are the key pillars of cooperation between India-Indonesia?<\/strong><\/span><\/h2>\n<p><span style=\"text-decoration: underline;\"><strong>1. Economic &amp; Trade Relations<\/strong><\/span><\/p>\n<ul>\n<li><strong>Bilateral Trade<\/strong>: It\u00a0has reached $29.4 billion in FY 2023-24, with the ambitious goal of <span style=\"color: #ff0000;\">increasing it to $50 billion by 2025<\/span>. <span style=\"color: #ff0000;\"><span style=\"color: #000000;\">Indonesia is<\/span> India\u2019s second-largest trading partner within ASEAN.<\/span><\/li>\n<li><strong>Key Exports &amp; Imports<\/strong>: India&#8217;s <span style=\"color: #ff0000;\">key imports<\/span> include <span style=\"color: #ff0000;\">coal, palm oil<\/span>, and <span style=\"color: #ff0000;\">rubber<\/span>, while its key exports are refined <span style=\"color: #000000;\">petroleum, telecom equipment<\/span>, and agricultural products.<\/li>\n<li><strong>Investment<\/strong>: <span style=\"color: #ff0000;\">Indian investment in Indonesia stands at<\/span> <span style=\"color: #ff0000;\">$1.56 billion<\/span>, with a focus on mining, textiles, and infrastructure, while <span style=\"color: #ff0000;\">Indonesian investment in India totals $653.8<\/span> million, primarily in manufacturing and trade.<\/li>\n<li><strong>Trade Facilitation<\/strong>: India and Indonesia have made efforts in trade facilitation, including the <span style=\"color: #ff0000;\">ASEAN-India Trade in Goods Agreement (AITIGA) review<\/span> to reduce trade barriers, and the Local Currency Settlement MoU, which encourages trade in local currencies.<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>2. Strategic &amp; Security Cooperation<\/strong><\/span><\/p>\n<ul>\n<li><strong>Defence &amp; Security<\/strong>&#8211; Both countries pledged to enhance defense cooperation through initiatives such as <span style=\"color: #ff0000;\">Coordinated Patrol, Ex Garuda Shakti (Army)<\/span>, and<span style=\"color: #ff0000;\"> Ex Samudra Shakti (Naval)<\/span>. Additionally, both sides agreed to set up a <span style=\"color: #ff0000;\">Bilateral Maritime Dialogue<\/span> and a <span style=\"color: #ff0000;\">Cyber Security Dialogue<\/span>.<\/li>\n<li><strong>Defense Industry Collaboration<\/strong>: India-Indonesia Defense Industry Exhibition (2024) showcased opportunities for cooperation in defense technology and manufacturing.<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>3. Energy &amp; Health Security<\/strong><\/span><\/p>\n<ul>\n<li><strong>Renewable Energy &amp; Critical Minerals<\/strong>: Both countries are focused on joint exploration of <span style=\"color: #ff0000;\">nickel and bauxite<\/span> for clean energy and biofuel collaboration for sustainability.<\/li>\n<li><strong>Health Cooperation<\/strong>: Both countries signed MoUs on Health Cooperation and Traditional Medicine Quality Assurance, focusing on digital health and capacity-building for healthcare professionals.<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>4. Technological Cooperation<\/strong><\/span><\/p>\n<ul>\n<li><strong>Digital &amp; Tech Advancements<\/strong>:\n<ul>\n<li>India\u2019s digital initiatives, such as <span style=\"color: #ff0000;\">Aadhaar, UPI, and CoWIN<\/span>, serve as models for Indonesia\u2019s digital growth<\/li>\n<li>Collaborative efforts in quantum communication, cybersecurity, artificial intelligence, and space technology<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>5. Cultural &amp; Educational Cooperation<\/strong><\/span><\/p>\n<ul>\n<li><strong>Heritage &amp; Arts<\/strong>: India supports the restoration of the <span style=\"color: #ff0000;\">Prambanan Temple, a UNESCO World Heritage Site in Indonesia<\/span>, and the Indian Cultural Centers in Jakarta and Bali promote Indian arts and yoga.<\/li>\n<li><strong>Education<\/strong>: Scholarships for Indonesian students available through <span style=\"color: #ff0000;\">ITEC (Indian Technical and Economic Cooperation)<\/span> and <span style=\"color: #ff0000;\">ICCR (Indian Council for Cultural Relations) programs<\/span><\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>6. Multilateral Cooperation<\/strong><\/span><\/p>\n<ul>\n<li>Both countries highlighted the significance of ASEAN centrality and collaboration on regional matters such as the ASEAN Outlook on the Indo-Pacific, the <span style=\"color: #ff0000;\">India-Indonesia-Australia Trilateral<\/span>, the Indo-Pacific Oceans Initiative (IPOI), as well as BRICS and the Indian Ocean Rim Association (IORA).<\/li>\n<\/ul>\n<h2><span style=\"color: #000000;\"><strong><a id=\"h3\"><\/a>What are the challenges in India- Indonesia relations?<\/strong><\/span><\/h2>\n<p><span style=\"text-decoration: underline;\"><strong>1. Trade and Economic Barriers<\/strong><\/span><\/p>\n<ul>\n<li><strong>Lack of Comprehensive Economic Cooperation Agreement (CECA)<\/strong>: Unlike Malaysia and Singapore, <span style=\"color: #ff0000;\">Indonesia does not have a CECA with India<\/span>, reducing its competitiveness, particularly in sectors like palm oil.<\/li>\n<li><strong>Low utilization of AITIGA<\/strong>: The ASEAN-India Trade in Goods Agreement (AITIGA) has a <span style=\"color: #ff0000;\">utilization rate of only 25%<\/span>, limiting the benefits that could be gained from the agreement.<\/li>\n<li><strong>Trade Imbalance<\/strong>: India imports significant quantities of palm oil ($11 billion in 2022) and coal from Indonesia, contributing to a trade imbalance that favors Indonesia.<\/li>\n<li><strong>Unrealized trade potential<\/strong>: Bilateral trade could increase by 33% to reach $61 billion, indicating untapped opportunities for growth in trade.<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>2. Investment and Competition with China<\/strong><\/span><\/p>\n<ul>\n<li><strong>Dominance of Chinese investments<\/strong>: Under President Joko Widodo, Chinese investments have overshadowed Indian investments. In 2024, <span style=\"color: #ff0000;\">Indonesia signed $10 billion worth of business deals with China<\/span>, further intensifying competition for investment.<\/li>\n<li><strong>Protectionist policies in India<\/strong>: Indian industries, especially textiles, have raised concerns about the influx of Indonesian products like <span style=\"color: #ff0000;\">Viscose Staple Fibre (VSF)<\/span>, fearing increased competition.<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>3. Geopolitical and Strategic Constraints<\/strong><\/span><\/p>\n<ul>\n<li><strong>Growing Chinese influence<\/strong>: Indonesia\u2019s participation in China\u2019s <span style=\"color: #ff0000;\">Belt and Road Initiative (BRI),<\/span> including large-scale infrastructure projects like railways, raises concerns for India, particularly regarding regional influence.<\/li>\n<li><strong>Regulatory challenges in defence<\/strong>: Differences in defense procurement processes have delayed joint defense projects, limiting the scope of strategic cooperation between the two nations.<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><strong>4. Connectivity and People-to-People Barriers<\/strong><\/span><\/p>\n<ul>\n<li><strong>Limited air connectivity<\/strong>: Direct flights between India and Indonesia are limited, restricting tourism, business expansion, and people-to-people exchanges.<\/li>\n<li><strong>Visa barriers<\/strong>: Restrictive visa policies hinder student exchanges, business travel, and cultural engagement, limiting deeper bilateral ties.<\/li>\n<\/ul>\n<h2><span style=\"color: #000000;\"><strong><a id=\"h4\"><\/a>What should be the way forward?<\/strong><\/span><\/h2>\n<p><strong>1. Enhancing Trade<\/strong>: Accelerating the <span style=\"color: #ff0000;\">Comprehensive Economic Partnership Agreement (CEPA)<\/span> and expanding economic cooperation in renewable energy and agriculture can address trade imbalances.<\/p>\n<p><strong>2. Strategic Partnerships<\/strong>: Encouraging Indonesia to join global initiatives like the <span style=\"color: #ff0000;\">International Solar Alliance<\/span> and the <span style=\"color: #ff0000;\">Global Biofuels Alliance<\/span> can foster mutual growth and innovation.<\/p>\n<p><strong>3. Multilateral Engagement<\/strong>: Strengthening cooperation through <span style=\"color: #ff0000;\">ASEAN, IORA<\/span>, and the <span style=\"color: #ff0000;\">Indian Ocean Naval Symposium<\/span> will align strategic interests and reinforce regional stability.<\/p>\n<p><strong>4. Economic Synergy<\/strong>: Joint defense projects, maritime security initiatives, and infrastructure development will build a robust Indo-Pacific framework to balance China\u2019s influence.<\/p>\n<p><strong>5. Deepened Collaborations<\/strong>: Expanding partnerships in IT, energy, and tourism, while fostering cultural ties, positions India as a reliable partner for Indonesia\u2019s growth trajectory.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><strong>Read more<\/strong>&#8211; <a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/india-indonesia-ties-as-a-beacon-for-global-relations\/article69180631.ece\" target=\"_blank\" rel=\"noopener\">The Hindu<\/a><br \/>\n<strong>UPSC Syllabus- GS 2<\/strong>&#8211; Bilateral, regional and global groupings and agreements involving India and\/or affecting India\u2019s interests.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Indonesian President Prabowo Subianto\u2019s visit to India as the chief guest for the 76th Republic Day was a significant milestone in India-Indonesia relations. The two nations share deep historical, cultural, and trade ties. Notably, Indonesia\u2019s first President, Sukarno, was the chief guest at India\u2019s first Republic Day in 1950, underscoring their long-standing friendship. The Indonesian&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-indonesia-relations\/\">Continue reading <span class=\"screen-reader-text\">India-Indonesia Relations- Explained Pointwise<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":325967,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130],"tags":[],"class_list":["post-325907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-7-pm","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/02\/India-Indonesia-relations-1.png?fit=583%2C422&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/325907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=325907"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/325907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/325967"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=325907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=325907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=325907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}