Published on: February 5, 2025
INDIA-INDONESIA RELATIONS: A BEACON FOR GLOBAL COOPERATION
INDIA-INDONESIA RELATIONS: A BEACON FOR GLOBAL COOPERATION
- Historical Ties:
- Deep-rooted relationship, symbolized by Indonesia’s President Sukarno as India’s first Republic Day chief guest (1950).
- Continued high-level exchanges, with President Prabowo Subianto’s recent visit marking the fourth time an Indonesian President has been chief guest.
- Key Focus Areas:
- Trade:
- Significant potential for growth, aiming to quadruple bilateral trade (currently ~$30 billion) in the next 10 years.
- CEOs Forum identified key sectors for collaboration: energy, food & agriculture, healthcare, manufacturing, and technology.
- Focus on intelligent investment in areas like clean energy, technology, and manufacturing to drive economic growth and address climate change.
- Security:
- Strengthening defense ties, including the Comprehensive Strategic Partnership (2018), focusing on maritime security.
- Enhanced cooperation in counterterrorism and cybersecurity.
- Crucial for navigating the complex geopolitical landscape of the Indo-Pacific.
- Geopolitics:
- Both nations navigating a shifting global environment, maintaining ties with various powers (e.g., BRICS membership for Indonesia alongside India and China; relationships with the US and other Western nations).
- Addressing global economic challenges, including potential impacts of tariffs and trade barriers.
- Indonesia’s role as a key source of natural resources (nickel, copper, tin, bauxite) seeking open markets.
- Trade:
- Economic Outlook:
- Strong economic growth projected for both countries (India ~6.5%, Indonesia ~5.1% in the current year), exceeding the global average.
- Driven by expanding markets, young workforces, and growing consumer demand.
- Untapped potential for investment, with current levels (Indonesian investment in India: $653.8 million; Indian investment in Indonesia: $1.56 billion) representing only a fraction of the possibilities.
- Significance of the Partnership:
- India and Indonesia as potential cornerstones of prosperity and security in the Indo-Pacific region.
- Their cooperation serves as a model for international relations, demonstrating how nations can work together across various sectors to achieve mutual benefit and contribute to global stability.
- The partnership’s importance is underscored by the evolving geopolitical landscape and the need for collaborative solutions to global challenges.