India-Indonesia: 75th Anniversary of Diplomatic Relations  

Syllabus: GS 2/IR

In News 

• 8th India-Indonesia Foreign Office Consultations were held in New Delhi 

Key Highlights 

• Both sides undertook a comprehensive review of bilateral ties, including political exchanges, defense and security, the maritime domain, trade and investment, healthcare, and connectivity. They also exchanged perspectives on regional and global issues of mutual interest. 
• The two sides discussed the ongoing commemoration of the 75th anniversary of the establishment of India-Indonesia diplomatic relations and the various activities organized to mark this milestone. 
• Both sides expressed satisfaction with the progress made across different sectors of engagement and agreed to explore new avenues of cooperation. It was agreed to hold the next FOC at a mutually convenient date..

India -Indonesia Bilateral Relations 

• Cultural & Historical Ties: India and Indonesia share over two millennia of close cultural and commercial contacts.
  • Hinduism, Buddhism, and later Islam spread to Indonesia from India.
  • Indian epics like Ramayana and Mahabharata influence Indonesian folk art and dramas.
  • The Bali Yatra festival is celebrated in both countries with enthusiasm.
• Political Relations: Both countries have common experiences of colonialism, democracy, pluralism, and progressive leadership.
  • President Sukarno of Indonesia was the Guest of Honour during India’s first Republic Day in 1950.
  • Both nations were instrumental in the independence movements of Asia and Africa, and contributed to the Bandung Conference (1955) and the formation of the Non-Aligned Movement (1961).
  • India’s ‘Look East Policy’ (1991) and ‘Act East Policy’ (2014) have accelerated bilateral relations, particularly in politics, security, defense, commerce, and culture
• G20 Engagement:Indonesia chaired the G20 Presidency in 2022 with the theme “Recover Together, Recover Stronger.”
  • India participated actively in G20 events hosted by Indonesia, and Prime Minister Modi attended the G20 Leaders’ Summit in Bali in November 2022.
  • India assumed the G20 presidency in December 2022, hosting over 100 meetings with strong Indonesian participation.
• Economic Relations: Bilateral trade for 2022-23 was USD 38.85 billion, with Indian exports at USD 10.02 billion and imports at USD 28.82 billion.
  • India is a major buyer of Indonesian coal, crude palm oil, and other resources. India exports refined petroleum, vehicles, agricultural products, and more.
• Investment:Indian investment in Indonesia reached USD 1,219 million in 4,750 projects (2000-2022).
  • Much of Indian investment enters Indonesia via Singapore and other gateways, so the actual volume may be higher.
  • Areas for Indian investment include joint ventures in diverse sectors.
• Blue Economy Opportunities: The blue economy focuses on sustainable economic activities related to oceans and seas.
  • Indonesia is a leader in leveraging its maritime resources for sustainable economic growth.
• Digital & Technological Cooperation:Both India and Indonesia are highly digitalized and use technology for public services and e-governance.
  • India’s success with Digital Public Infrastructures (DPI) can serve as a model for Indonesia, which is also developing its DPIs.
  • Cybersecurity is a key area for cooperation as both countries face new security risks in digital public services.
• Defence: India and Indonesia have strong defence and security cooperation. In May 2018, during Prime Minister Narendra Modi’s visit, both nations signed a new Defence Cooperation Agreement, marking the elevation of their relationship to a Comprehensive Strategic Partnership.
  • Exercise GARUDA SHAKTI  is a joint training exercise between Indian Special Forces and the Indonesian Special Forces.

Future outlook 

• Cooperation in the blue economy and digital technology offers promising opportunities for India and Indonesia.
• These collaborations will not only strengthen bilateral ties but also contribute to the broader Indo-Pacific region’s prosperity.
• There is potential for India and Indonesia to collaborate on marine pollution, overfishing, sea farming, maritime security, waste management, blue carbon spaces, and marine resource utilization for fuel and food production.

Source: AIR