Context

• The relationship between India and Indonesia is one of deep historical significance and strategic importance.
• The recent visit of Indonesian President Prabowo Subianto as the chief guest at India’s 76th Republic Day celebrations highlighted the strong bilateral ties between the two nations.
• This visit served as a reminder of their shared history, economic potential, and security collaboration, reinforcing their crucial role in shaping the Indo-Pacific region and global geopolitical dynamics.

India-Indonesia Relations: Historical Foundations and Evolution of Ties

• Shared Struggles for Independence
  • The historical ties between India and Indonesia are deeply rooted in shared experiences of colonisation, independence, and the subsequent quest for self-determination.
  • The relationship between the two nations dates back to the period of their independence movements in the 20th century, with both countries emerging as independent republics within a few years of each other.
  • India, having gained independence from British rule in 1947, quickly charted its course as the world’s largest democracy.
  • Indonesia followed in 1945, declaring its independence from Dutch colonial rule, though it was not until 1949 that Indonesia’s sovereignty was internationally recognised.
• Symbolic Beginnings: The 1950 Republic Day Invitation
  • The first formal gesture of this mutual respect occurred in 1950, during India’s inaugural Republic Day celebrations.
  • Indonesia’s founding father and first president, Sukarno, was invited to attend as the chief guest, an honour that symbolised the beginning of a diplomatic relationship based on mutual understanding and cooperation.
  • This moment set the tone for a relationship characterised by shared values of democracy, non-alignment, and peaceful co-existence.
• Strengthening Diplomatic and Economic Ties
  • As both nations embarked on their journeys as newly sovereign states, their leaders recognized the importance of developing strong diplomatic and economic ties.
  • The early years of their relationship were marked by cooperation in the international arena, particularly through the Non-Aligned Movement (NAM), which both India and Indonesia played pivotal roles in shaping.
  • The NAM, established in the mid-20th century, sought to create an alternative bloc to the Cold War divisions of the Western and Eastern blocs, emphasizing a third path that promoted peace, cooperation, and independence from superpower influence.
• Bilateral Engagements and Cultural Exchange
  • In the decades following their independence, the two countries strengthened their relationship through various bilateral engagements.
  • India and Indonesia signed numerous agreements, including trade and economic cooperation pacts, and developed cultural exchanges that further deepened their ties.
  • These exchanges were reflective of both nations' rich cultural heritages, which offered a strong foundation for mutual respect and collaboration.
• Consistent Leadership Visits
  • The repeated visits of Indonesian presidents to India, including the recent visit by President Prabowo Subianto, underscore the enduring nature of this partnership.
  • President Prabowo’s visit marked the fourth time an Indonesian leader had been invited as the chief guest for India’s Republic Day celebrations, a testament to the consistent and growing importance of the relationship.
  • These visits have been instrumental in enhancing bilateral cooperation and opening new avenues for collaboration in diverse sectors, including trade, defence, technology, and education.

The Key Aspects of India-Indonesia Relations

• Trade as a Pillar of Growth
  • Economic cooperation has been a key aspect of India-Indonesia relations.
  • Although a trade agreement was signed in 1966, there remains vast untapped potential for expanding economic ties.
  • Currently, bilateral trade stands at approximately $30 billion, but there are ambitions to quadruple this figure over the next decade.
  • A recent CEOs Forum in New Delhi, co-chaired by the Chairman of the Indonesian Chamber of Commerce and Indian business leader Ajay S. Shriram, identified five key sectors for growth: energy, food and agriculture, healthcare, manufacturing, and technology.
  • By focusing on innovation and strengthening bilateral supply chains, both nations can unlock new economic opportunities.
  • With projected economic growth rates of 6.5% for India and 5.1% for Indonesia, both nations are well-positioned to thrive despite global economic uncertainties.
• Security and Strategic Cooperation
  • Security cooperation forms another crucial pillar of the India-Indonesia partnership.
  • The 2018 Comprehensive Strategic Partnership has significantly strengthened defence ties, especially in maritime security.
  • As two nations with extensive coastlines and vital shipping lanes, ensuring the safety of their waters is paramount.
  • President Prabowo’s visit further reinforced commitments to counterterrorism and cybersecurity cooperation.
  • Given the evolving geopolitical landscape in the Indo-Pacific, closer military and strategic collaboration is essential to safeguarding regional stability and economic prosperity.
  • Both countries recognise the need to address common security challenges, including cyber threats and territorial disputes.

Geopolitical Significance of India-Indonesia Relations

• Beyond their bilateral relationship, India and Indonesia play vital roles in global geopolitics.
• Indonesia’s recent invitation to join the BRICS group aligns it with other emerging economies, including India and China.
• Meanwhile, both nations maintain significant relations with the United States and other Western powers.
• However, global trade faces challenges, including potential U.S. tariffs that could impact both economies.
• As a resource-rich nation, Indonesia seeks to export key commodities such as nickel, copper, tin, and bauxite to markets like the U.S. and India.
• Meanwhile, India’s expanding manufacturing sector presents opportunities for mutually beneficial trade arrangements.

Conclusion

• President Prabowo’s visit reaffirmed the deep and enduring partnership between India and Indonesia.
• Their relationship, now 76 years old, continues to evolve, driven by trade, security, and strategic cooperation.
• As they navigate global economic and geopolitical shifts, their collaboration will be instrumental in shaping the future of the Indo-Pacific and beyond.
• By strengthening ties, India and Indonesia not only enhance their own prosperity and security but also contribute to a more stable and sustainable world.