Introduction
Prime Minister Narendra Modi received a significant call on Thursday, June 20, 2024, from Indonesian President-elect Prabowo Subianto, focusing on enhancing the comprehensive strategic partnership between India and Indonesia. The leaders engaged in discussions aimed at bolstering bilateral ties across various sectors.
Prime Minister Narendra Modi said he was delighted to receive a phone call from President-elect Prabowo Subianto. (Photo: Reuters)
PM Modi’s Tweet
"Delighted to receive a phone call from President-elect Prabowo Subianto. Wished him success for his upcoming Presidency. We discussed ways to strengthen comprehensive strategic partnership between India and Indonesia that are based on our civilizational ties," Prime Minister Modi wrote on X, formerly Twitter.
Rapid Development of Bilateral Relations
India and Indonesia have maintained close commercial and cultural ties for over two millennia. Indonesian President Sukarno was the Chief Guest at India's first Republic Day celebrations in 1950.
According to India's Ministry of External Affairs (MEA), bilateral relations have rapidly developed in political, security, defense, commercial, and cultural fields since the 'Look East Policy' was adopted in 1991 and upgraded to 'Act East' in 2014.
In May 2018, during Prime Minister Modi's visit to Jakarta at the invitation of President Joko Widodo, the two countries agreed to establish a Comprehensive Strategic Partnership to usher in a new era of bilateral relations. They also agreed on a Shared Vision of India-Indonesia Maritime Cooperation in the Indo-Pacific.
Indonesia held the G20 Presidency in 2022. India assumed the G20 presidency on December 1, 2022, taking over from Indonesia amid geopolitical turmoil and uncertainty over post-pandemic economic recovery.
Close Cooperation in Diverse Sectors
India and Indonesia have collaborated closely over the years in various sectors, including foreign affairs, defense and security, infrastructure, and energy. In 2001, a Joint Commission Mechanism (JCM) was established at the Foreign Ministers' level, with the 7th JCM meeting held in New Delhi in June 2022, co-chaired by India's External Affairs Minister S. Jaishankar and Indonesia's Foreign Minister Retno Marsudi.
In 2016, both countries agreed to establish a Security Dialogue to develop a comprehensive action plan on security cooperation. The 2nd India-Indonesia Security Dialogue took place in Indonesia in March 2022, co-chaired by India's National Security Advisor Ajit Doval and Indonesia's Coordinating Minister for Political, Legal, and Security Affairs Mohammad Mahfud.
Additionally, India and Indonesia have Joint Working Groups on Counter-Terrorism, Narcotics, Energy, Coal, and Agriculture. They also engage through the India-Indonesia Infrastructure Forum, which includes leading corporations from both nations in this sector.
Robust Commercial Relationship
According to official figures, Indonesia has become India's second-largest trading partner in the ASEAN region. Bilateral trade has grown from US$ 4.3 billion in 2005-06 to US$ 38.84 billion in 2022-23.
India is the second-largest buyer of Indonesian coal and crude palm oil, and it also imports minerals, rubber, pulp and paper, and hydrocarbons. In return, India exports refined petroleum products, commercial vehicles, telecommunication equipment, agricultural commodities, bovine meat, steel products, and plastics to Indonesia.
The investment climate in Indonesia is favorable, making it an attractive destination for Indian investments in the region. Indian companies have made substantial investments in various sectors, including infrastructure, power, textiles, steel, automotive, mining, banking, and consumer goods.
India and Indonesia Forge Path to Digital Cooperation Amidst Strategic Opportunities
Digital and technological advancements are becoming pivotal arenas for India and Indonesia as they navigate the complexities of the 21st century. Both nations have embraced digitalization extensively, leveraging technology to enhance public services and foster a startup culture in governance. India, known for its robust digital public infrastructures (DPI), stands poised to share its expertise with Indonesia, which is also exploring various forms of DPI implementation. Cybersecurity emerges as a critical concern as both countries ramp up digital services, making them vulnerable to evolving security threats.
As India and Indonesia strengthen their bilateral ties, collaboration in digital and technological spheres holds immense potential. This partnership not only promises to elevate their respective economies and governance models but also contributes significantly to regional stability and prosperity in the Indo-Pacific region. Embracing these opportunities could pave the way for innovative solutions and enhanced resilience against emerging challenges in the digital age.
(With Inputs from India News Network)
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