{"id":36251,"date":"2025-01-27T18:32:53","date_gmt":"2025-01-27T13:02:53","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=36251"},"modified":"2025-01-27T19:14:20","modified_gmt":"2025-01-27T13:44:20","slug":"india-indonesia-relations","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/27-01-2025\/india-indonesia-relations","title":{"rendered":"India-Indonesia: Ancient Ties to a New Phase\u00a0\u00a0"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ International Relations<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The recent state visit of the Indonesian President to India and his role as the Chief Guest for India\u2019s <strong>76th Republic Day<\/strong> mark the <strong>75th anniversary<\/strong> of India-Indonesia diplomatic relations, covering the full spectrum of bilateral cooperation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India-Indonesia Relations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Historical and Cultural Ties:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Ancient Connections<\/strong>: Evidence of trade and cultural exchanges between India and Indonesia dates back to the <strong>2nd century BCE<\/strong>.<\/li>\n\n\n\n<li><strong>Cultural Influence<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The <strong>Ramayana<\/strong> and <strong>Mahabharata<\/strong> epics have shaped Indonesian folklore, dance, music, and theater.<\/li>\n\n\n\n<li>Hindu-Buddhist influences contributed to the rise of the <strong>Srivijaya<\/strong> and <strong>Majapahit empires<\/strong>, leaving landmarks like <strong>Borobudur<\/strong> and <strong>Prambanan temples<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Trade Links<\/strong>: The <strong>Kalingas<\/strong> maintained trade relations with Java, Borneo, Sumatra, Bali, and Burma.<\/li>\n\n\n\n<li><strong>Cultural Exchange Programme (2025\u20132028)<\/strong>: Strengthens people-to-people ties.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Political Relations:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Shared colonial experiences, democracy, and pluralism.<\/li>\n\n\n\n<li>Indonesia&#8217;s President Sukarno was the Guest of Honour for India\u2019s <strong>first Republic Day in 1950<\/strong>.<\/li>\n\n\n\n<li>Collaborated on <strong>Bandung Conference (1955)<\/strong> and <strong>Non-Aligned Movement (1961)<\/strong>.<\/li>\n\n\n\n<li>India&#8217;s <strong>Act East Policy<\/strong> (2014) complements Indonesia\u2019s <strong>Global Maritime Fulcrum Vision<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Economic Partnership:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Indonesia is <strong>one of India\u2019s largest<\/strong> trading partners in ASEAN.\n<ul class=\"wp-block-list\">\n<li><strong>Bilateral Trade: USD 38.8 billion in April 2022\u2013March 2023.<\/strong>&nbsp;<\/li>\n\n\n\n<li>Both nations desired that the <strong>2nd meeting of the Working Group on Trade and Investment (WGTI)<\/strong>, as well as the <strong>4th Biennial Trade Ministers\u2019 Forum (BMTF) <\/strong>be convened to resolve outstanding <strong>tariff and non-tariff barriers to trade<\/strong>.&nbsp;<\/li>\n\n\n\n<li>Both leaders agreed to the expedited conclusion of the ongoing review of the <strong>ASEAN-India Trade in Goods Agreement (AITIGA) by 2025.<\/strong><\/li>\n\n\n\n<li>MoU on <strong>Local Currency Settlement Systems (LCSS)<\/strong> between the Reserve Bank of India and Bank Indonesia.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Strategic Partnership: The <strong>Comprehensive Strategic Partnership, signed in 2018, <\/strong>aims to enhance cooperation in <strong>defense, trade, investment, and maritime security.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Key Mechanisms<\/strong> include <strong>India\u2013Indonesia Security Dialogue, Consular Dialogue and Policy Planning Dialogue.<\/strong><\/li>\n\n\n\n<li><strong>\u2018<\/strong>1st \u2018<strong>Track 1.5 Dialogue\u2019<\/strong> at Mumbai in September 2024<\/li>\n\n\n\n<li>Both leaders agreed to an early establishment of <strong>Bilateral Maritime Dialogue and Cyber Security Dialogue.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Defense Cooperation<\/strong>: <strong>Shared Vision on Maritime Cooperation in the Indo-Pacific (2018)<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Joint exercises:\n<ul class=\"wp-block-list\">\n<li><strong>Ex Garuda Shakti<\/strong> (Army) and <strong>Ex Samudra Shakti<\/strong> (Navy).<\/li>\n\n\n\n<li>Multilateral exercises: <strong>Milan<\/strong>, <strong>Komodo<\/strong>, <strong>Tarang Shakti<\/strong>, and <strong>Super Garuda Shield<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>White Shipping Information Exchange (WSIE)<\/strong> Agreement.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Food Security:<\/strong><strong>India\u2019s support in Indonesia\u2019<\/strong>s new <strong>mid-day meal scheme<\/strong> through the sharing of knowledge and experience\n<ul class=\"wp-block-list\">\n<li>India\u2019s commitment to supporting the initiative and invited more Indonesian officials to benefit from the expertise of the <strong>Food Corporation of India<\/strong> in managing the <strong>Public Distribution System.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Energy Security: <\/strong>Both sides have shown interest in <strong>joint exploration and mining<\/strong> related projects, particularly relating to <strong>critical minerals<\/strong> such as nickel, bauxite, silica, tin etc. with a focus on the downstream sectors.\n<ul class=\"wp-block-list\">\n<li><strong>Nunukan Gas Block Project<\/strong>: India&#8217;s Bharat Petroleum Corporation Limited (BPCL) plans to invest $121 million in Indonesia&#8217;s Nunukan oil and gas block.<\/li>\n\n\n\n<li>Indonesia positively welcomes India\u2019s invitation to join the <strong>Global Biofuels Alliance.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Infrastructure and Connectivity:<\/strong> Expanded <strong>bilateral Air Services Agreement<\/strong> to enhance trade, tourism, and exchanges.\n<ul class=\"wp-block-list\">\n<li>Collaboration under the <strong>Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)<\/strong>.<\/li>\n\n\n\n<li>Discussions on <strong>QR-based cross-border payments<\/strong> for financial inclusivity.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Science, Technology, and Space Cooperation:<\/strong> Renewed <strong>MoU on Scientific and Technological Cooperation<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Collaboration on STEM research and the <strong>Biak Telemetry, Tracking, and Command Facility<\/strong> agreement between ISRO and Indonesia&#8217;s BRIN.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Climate Change and Disaster Resilience:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Coalition for Disaster Resilient Infrastructure (CDRI)<\/strong>: Indonesia has joined this initiative.<\/li>\n\n\n\n<li>Invitations extended to join the <strong>International Solar Alliance<\/strong> and <strong>International Big Cat Alliance<\/strong>.<\/li>\n\n\n\n<li>Strengthened cooperation in disaster management and capacity building.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Multilateral Cooperation:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>UN &amp; G20<\/strong>: Advocating for the <strong>Global South<\/strong> and South-South cooperation.<\/li>\n\n\n\n<li><strong>ASEAN<\/strong>: Strengthening the <strong>ASEAN-India Comprehensive Strategic Partnership<\/strong> and implementing the <strong>ASEAN-India Joint Statement on the Indo-Pacific<\/strong>.<\/li>\n\n\n\n<li><strong>BRICS<\/strong>: India welcomed Indonesia\u2019s membership to strengthen regional cooperation.<\/li>\n\n\n\n<li><strong>IORA<\/strong>: Joint efforts on the <strong>Blue Economy<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Trade Imbalances<\/strong>: Indonesia\u2019s trade surplus with India is driven by its exports of commodities like coal and palm oil.<\/li>\n\n\n\n<li><strong>Regulatory Hurdles<\/strong>: Streamlining permits, quotas, and non-tariff measures remains a challenge.<\/li>\n\n\n\n<li><strong>Logistical Constraints<\/strong>: Infrastructure and transportation bottlenecks hinder deeper economic integration.<\/li>\n\n\n\n<li><strong>Geopolitical Dynamics<\/strong>: Indo-Pacific challenges, including China\u2019s influence, require joint efforts to ensure regional stability.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion and Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India and Indonesia share a robust historical foundation and growing strategic and economic ties. Cooperation in the blue<strong> economy<\/strong>, <strong>digital technologies<\/strong>, and <strong>maritime security<\/strong> presents new opportunities to enhance bilateral relations.&nbsp;<\/li>\n\n\n\n<li>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.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> 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?<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/01\/UPSC-Editorial-Analysis-27-January-2025-PDF.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The recent state visit of the Indonesian President to India and his role as the Chief Guest for India\u2019s 76th Republic Day mark the 75th anniversary of India-Indonesia diplomatic relations, covering the full spectrum of bilateral cooperation.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-36251","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=36251"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36251\/revisions"}],"predecessor-version":[{"id":36269,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36251\/revisions\/36269"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=36251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=36251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=36251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}