Syllabus: GS2/ International Relations
Context
- The recent state visit of the Indonesian President to India and his role as the Chief Guest for India’s 76th Republic Day mark the 75th anniversary of India-Indonesia diplomatic relations, covering the full spectrum of bilateral cooperation.
India-Indonesia Relations
- Historical and Cultural Ties:
- Ancient Connections: Evidence of trade and cultural exchanges between India and Indonesia dates back to the 2nd century BCE.
- Cultural Influence:
- The Ramayana and Mahabharata epics have shaped Indonesian folklore, dance, music, and theater.
- Hindu-Buddhist influences contributed to the rise of the Srivijaya and Majapahit empires, leaving landmarks like Borobudur and Prambanan temples.
- Trade Links: The Kalingas maintained trade relations with Java, Borneo, Sumatra, Bali, and Burma.
- Cultural Exchange Programme (2025–2028): Strengthens people-to-people ties.
- Political Relations:
- Shared colonial experiences, democracy, and pluralism.
- Indonesia’s President Sukarno was the Guest of Honour for India’s first Republic Day in 1950.
- Collaborated on Bandung Conference (1955) and Non-Aligned Movement (1961).
- India’s Act East Policy (2014) complements Indonesia’s Global Maritime Fulcrum Vision.
- Economic Partnership:
- Indonesia is one of India’s largest trading partners in ASEAN.
- Bilateral Trade: USD 38.8 billion in April 2022–March 2023.
- Both nations desired that the 2nd meeting of the Working Group on Trade and Investment (WGTI), as well as the 4th Biennial Trade Ministers’ Forum (BMTF) be convened to resolve outstanding tariff and non-tariff barriers to trade.
- Both leaders agreed to the expedited conclusion of the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA) by 2025.
- MoU on Local Currency Settlement Systems (LCSS) between the Reserve Bank of India and Bank Indonesia.
- Indonesia is one of India’s largest trading partners in ASEAN.
- Strategic Partnership: The Comprehensive Strategic Partnership, signed in 2018, aims to enhance cooperation in defense, trade, investment, and maritime security.
- Key Mechanisms include India–Indonesia Security Dialogue, Consular Dialogue and Policy Planning Dialogue.
- ‘1st ‘Track 1.5 Dialogue’ at Mumbai in September 2024
- Both leaders agreed to an early establishment of Bilateral Maritime Dialogue and Cyber Security Dialogue.
- Defense Cooperation: Shared Vision on Maritime Cooperation in the Indo-Pacific (2018).
- Joint exercises:
- Ex Garuda Shakti (Army) and Ex Samudra Shakti (Navy).
- Multilateral exercises: Milan, Komodo, Tarang Shakti, and Super Garuda Shield.
- White Shipping Information Exchange (WSIE) Agreement.
- Joint exercises:
- Food Security:India’s support in Indonesia’s new mid-day meal scheme through the sharing of knowledge and experience
- India’s commitment to supporting the initiative and invited more Indonesian officials to benefit from the expertise of the Food Corporation of India in managing the Public Distribution System.
- Energy Security: Both sides have shown interest in joint exploration and mining related projects, particularly relating to critical minerals such as nickel, bauxite, silica, tin etc. with a focus on the downstream sectors.
- Nunukan Gas Block Project: India’s Bharat Petroleum Corporation Limited (BPCL) plans to invest $121 million in Indonesia’s Nunukan oil and gas block.
- Indonesia positively welcomes India’s invitation to join the Global Biofuels Alliance.
- Infrastructure and Connectivity: Expanded bilateral Air Services Agreement to enhance trade, tourism, and exchanges.
- Collaboration under the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT).
- Discussions on QR-based cross-border payments for financial inclusivity.
- Science, Technology, and Space Cooperation: Renewed MoU on Scientific and Technological Cooperation.
- Collaboration on STEM research and the Biak Telemetry, Tracking, and Command Facility agreement between ISRO and Indonesia’s BRIN.
- Climate Change and Disaster Resilience:
- Coalition for Disaster Resilient Infrastructure (CDRI): Indonesia has joined this initiative.
- Invitations extended to join the International Solar Alliance and International Big Cat Alliance.
- Strengthened cooperation in disaster management and capacity building.
- Multilateral Cooperation:
- UN & G20: Advocating for the Global South and South-South cooperation.
- ASEAN: Strengthening the ASEAN-India Comprehensive Strategic Partnership and implementing the ASEAN-India Joint Statement on the Indo-Pacific.
- BRICS: India welcomed Indonesia’s membership to strengthen regional cooperation.
- IORA: Joint efforts on the Blue Economy.
Key Challenges
- Trade Imbalances: Indonesia’s trade surplus with India is driven by its exports of commodities like coal and palm oil.
- Regulatory Hurdles: Streamlining permits, quotas, and non-tariff measures remains a challenge.
- Logistical Constraints: Infrastructure and transportation bottlenecks hinder deeper economic integration.
- Geopolitical Dynamics: Indo-Pacific challenges, including China’s influence, require joint efforts to ensure regional stability.
Conclusion and Way Forward
- India and Indonesia share a robust historical foundation and growing strategic and economic ties. Cooperation in the blue economy, digital technologies, and maritime security presents new opportunities to enhance bilateral relations.
- Addressing trade imbalances, fostering joint ventures, and leveraging cultural ties can help strengthen the partnership, benefitting both nations and contributing to regional peace and prosperity.
Daily Mains Practice Question [Q] How do the ancient cultural and historical ties between India and Indonesia shape their contemporary strategic and economic partnerships in the new phase of bilateral relations? |
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