India and Indonesia’s deepening partnership takes centre stage as the two nations commemorate a historic bond amidst evolving challenges in the Indo-Pacific region. President Prabowo Subianto’s presence as the chief guest for India’s 76th Republic Day celebrations, marking 75 years of India as a republic, highlights the deepening ties between the two nations. This historic occasion harks back to President Sukarno’s attendance at India’s inaugural Republic Day in 1950, underscoring the enduring bond between India and Indonesia. As two nations linked by shared struggles for independence and cultural ties, their modern partnership seeks to address pressing global and regional issues through collaboration, with a focus on trade, security, and sustainable development.
The Indo-Pacific region, with its geopolitical complexities and shifting alliances, stands as the focal point of this partnership. Both India and Indonesia, as key stakeholders, champion a free, open, and inclusive Indo-Pacific underpinned by international law. They continue to advocate for multilateralism and the interests of the Global South, recognising their roles as voices for equity and stability. Amidst increasing tensions in the South China Sea, their shared commitment to a rules-based maritime order is pivotal in countering threats to freedom of navigation and regional security.
Economic cooperation forms a vital pillar of this evolving relationship. Trade between India and Indonesia has expanded significantly, from $4.3 billion in 2005-06 to over $30 billion in 2024, reflecting a robust trajectory. While Indonesia remains India’s second-largest trading partner within ASEAN, the two nations are actively working to diversify their trade baskets. The latest talks between Prime Minister Narendra Modi and President Subianto focused on expanding market access and enhancing partnerships in emerging sectors such as artificial intelligence, digital infrastructure, and fintech. These areas are critical in driving innovation and growth in a globally competitive landscape.
Indonesia’s infrastructure aspirations also offer opportunities for deeper economic collaboration. President Subianto’s emphasis on reducing bureaucratic hurdles to facilitate Indian investments highlights the urgency of building stronger trade ties. As a nation experienced in executing large-scale projects, India’s potential contributions to Indonesia’s infrastructure development could significantly enhance connectivity and economic resilience in the region. Furthermore, shared initiatives in critical minerals and renewable energy align with global sustainability goals, reaffirming the importance of South-South cooperation in tackling climate challenges and energy security.
Defence and security cooperation reflect another critical dimension of India-Indonesia relations. The recent ratification of a bilateral defence agreement signals a commitment to addressing both traditional and non-traditional security threats. Joint ventures in defence manufacturing and supply chains signify a deepening of trust and mutual interests. The planned acquisition of India’s BrahMos cruise missiles by Indonesia, a deal valued at approximately $450 million, further solidifies defence ties and highlights India’s growing prominence as a global arms supplier. Additionally, agreements on maritime safety and security aim to enhance collaboration in crime prevention, search and rescue operations, and capacity building, strengthening the region’s collective security framework.
The broader challenges of terrorism, cybercrime, and radicalisation also demand collaborative solutions, and India and Indonesia have demonstrated their commitment to addressing these issues through counter-terrorism efforts and de-radicalisation initiatives. Shared expertise in cyber security will also prove critical in safeguarding vital infrastructure and information systems in an increasingly digitised world.
Cultural and historical ties add a rich layer to the partnership, underscoring the civilisational connections between India and Indonesia. Indian assistance in conserving Indonesia’s UNESCO heritage sites, including the Borobudur and Prambanan temples, exemplifies soft power diplomacy rooted in shared heritage. The upcoming India-ASEAN Year of Tourism in 2025 is expected to further strengthen people-to-people ties, fostering a deeper understanding of the two nations’ intertwined histories and contemporary aspirations.
In the context of South-South cooperation, India and Indonesia stand out as champions of developing countries, advocating for equitable growth and addressing global disparities. Both nations have prioritised health partnerships, with India stepping up to support Indonesia’s healthcare workforce needs by sharing expertise and sending personnel. Cooperation in food security and education through programmes like India’s mid-day meal scheme further highlights the potential for mutual learning and benefit, enriching development outcomes across the Global South.
While their bilateral engagements flourish, the two nations also align on larger multilateral platforms. Indonesia’s recent accession to BRICS and its active role in ASEAN, G20, and the Indian Ocean Rim Association illustrate its commitment to regional and global cooperation. Prime Minister Modi’s assurance of working closely with Indonesia on the priorities of the Global South signals a shared vision of inclusivity and collective progress.
Despite these promising developments, challenges persist in navigating the complexities of the Indo-Pacific. Rising geopolitical tensions, economic uncertainties, and bureaucratic hurdles require sustained dialogue and innovation. However, the willingness demonstrated by both governments to address these issues provides a foundation for durable collaboration. President Subianto’s call for an accelerated programme of cooperation and the presence of an Indonesian military contingent in India’s Republic Day parade stand as testaments to the commitment to strengthening this relationship.
The partnership between India and Indonesia goes beyond mere bilateral engagement, serving as a collaborative effort to confront shared challenges and harness mutual opportunities in an interconnected world. By leveraging their combined strengths in trade, defence, energy, and cultural diplomacy, the two nations are not only bolstering their own development but also contributing to the broader stability and prosperity of the Indo-Pacific region. As they chart a course for the future, India and Indonesia reaffirm their commitment to a partnership rooted in history, enriched by shared values, and guided by a vision of collective progress for the Global South and beyond
Disclaimer
Views expressed above are the author’s own.
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