Why India-Indonesia bonhomie is a win-win for both

As neighbours across the Indian Ocean, their strategic partnership is not only beneficial for their respective national interests but also plays a pivotal role in shaping the geopolitical dynamics of the Indo-Pacific region.

The strengthening of ties between these two nations represents a win-win scenario, offering opportunities for collaboration in diverse fields and contributing to regional and global stability.

Indonesia and India are all set to sign key pacts on defence, trade, energy and security cooperation as Indonesian President Prabowo Subianto will be arriving in New Delhi as chief guest at India’s 76th Republic Day celebrations on January 26.

According to the Indian Prime Minister's Office (PMO), at the invitation of PM Narendra Modi, the Indonesian President is paying the two-day state visit to India during January 25-26. This will be his first visit to India after assuming office in October last year.

The foundations of India-Indonesia relations are deeply rooted in shared history and culture.

Ancient trade routes facilitated the exchange of goods, ideas, and religions, with Hinduism and Buddhism playing significant roles in shaping Indonesia’s cultural heritage.

The influence of Indian epics like the Ramayana and Mahabharata is evident in Indonesia’s art, dance, and literature, while the architectural marvels of Borobudur and Prambanan showcase the historical interlinkages.

Post-independence, both countries played active roles in the Non-Aligned Movement, advocating for decolonisation and the sovereignty of newly independent nations.

This shared legacy of anti-colonial struggle and commitment to non-alignment continues to resonate in their bilateral relationship.

Economic collaboration forms a cornerstone of India-Indonesia ties. Indonesia is India’s largest trading partner in the ASEAN region, with bilateral trade crossing $38 billion in 2023.

The two nations complement each other economically: Indonesia, as the world’s largest producer of palm oil, is a key supplier to India, while India exports refined petroleum, textiles, and pharmaceuticals.

Efforts to enhance trade relations include the Comprehensive Economic Cooperation Agreement (CECA), which aims to reduce tariffs and boost investments.

Additionally, Indian companies have shown interest in Indonesia’s infrastructure and manufacturing sectors, while Indonesian firms are exploring opportunities in India’s technology and renewable energy markets.

As maritime nations, both India and Indonesia recognise the potential of the blue economy.

With vast coastlines and abundant marine resources, they are collaborating on sustainable fishing, marine biodiversity conservation, and the development of coastal infrastructure.

Initiatives like India’s “SAGAR” (Security and Growth for All in the Region) and Indonesia’s “Global Maritime Fulcrum” offer a framework for joint projects in maritime logistics, ports, and fisheries.

The Indo-Pacific region has emerged as a focal point of global geopolitics, with major powers vying for influence. India and Indonesia, as key players in this region, share a common interest in ensuring peace, stability, and a rules-based order.

Indonesia’s strategic location along critical sea lanes, including the Strait of Malacca, aligns with India’s vision of a free, open, and inclusive Indo-Pacific.

Both nations are working closely within frameworks such as the Quad (comprising India, the US, Japan, and Australia) and the ASEAN Outlook on the Indo-Pacific (AOIP).

Their cooperation in these platforms underscores their shared commitment to countering unilateral actions, ensuring maritime security, and promoting economic growth in the region.

Defence ties between India and Indonesia have deepened significantly over the years.

Regular naval exercises like “Samudra Shakti” highlight the growing interoperability between their armed forces.

Both countries are also focusing on counter-terrorism and intelligence sharing, recognising the need to combat transnational threats such as piracy, smuggling, and extremist violence.

Furthermore, Indonesia’s interest in procuring Indian defence equipment, such as the BrahMos missile system, signals the potential for greater defence trade and technology transfers.

Such collaborations not only strengthen their military capabilities but also contribute to regional deterrence.

India and Indonesia are among the world’s most vulnerable nations to climate change.

Rising sea levels, extreme weather events, and environmental degradation pose significant challenges to their sustainable development goals.

Recognising these shared threats, both countries have intensified their cooperation on climate action.

Indonesia’s massive peatland and forest ecosystems, crucial for global carbon sequestration, align with India’s efforts to combat deforestation and promote afforestation.

Joint research on renewable energy, particularly solar and wind power, offers mutual benefits, as both nations strive to transition to greener economies.

Moreover, their active participation in forums like the International Solar Alliance underscores their commitment to global climate leadership.

Strong people-to-people connections are a cornerstone of India-Indonesia relations. With vibrant Indian and Indonesian diasporas contributing to cultural exchange and economic ties, the relationship transcends governmental agreements.

Tourism is another area of mutual interest.

Indonesia’s Bali, known for its Hindu cultural heritage, attracts thousands of Indian tourists annually, while India’s spiritual and historical sites draw Indonesian visitors.

Efforts to enhance air connectivity and ease visa regulations have the potential to boost tourism and foster deeper cultural understanding.

Educational and academic exchanges are also on the rise, with Indonesian students pursuing higher education in India, particularly in fields like medicine, engineering, and IT.

Collaborative research programmes and scholarships further strengthen academic ties.

Despite their strong ties, India and Indonesia face common challenges that require collaborative solutions.

Both nations have faced the brunt of terrorism and are working to strengthen intelligence sharing, deradicalisation programmes, and capacity-building measures to combat extremist ideologies.

Inclusive growth remains a priority, with both governments striving to reduce poverty and bridge income inequalities.

Enhanced trade and investment can provide the impetus for job creation and economic empowerment.

In an era of shifting power dynamics, India and Indonesia’s partnership serves as a stabilising force. By advocating for dialogue and peaceful resolution of disputes, they can address regional tensions effectively.

The India-Indonesia relationship is poised for greater heights, with both nations recognising the untapped potential of their partnership.

According to media reports, New Delhi and Jakarta could finalise an agreement for the sale of BrahMos supersonic missiles during the Indonesian President's forthcoming state visit.

However, The Print reported, citing sources, that no such deal will be inked during January 25-26 as talks are on but the deal is yet to be worked out.

Meanwhile, on the defence front, both countries could sign an agreement for the maintenance of Sukhoi fighter jets and the training of Indonesian pilots.

The India-Indonesia bonhomie is a testament to the power of shared values, mutual respect, and common goals.

As two vibrant democracies with young populations, their partnership offers immense potential for economic growth, regional stability, and global leadership.

The road ahead is one of collaboration, innovation, and shared success—a true win-win for both nations.