Politics
A new opportunity for New Delhi and Jakarta
India's invitation to Indonesia's new President, Prabowo Subianto, as the chief guest of Republic Day 2025 reflects the weight India attaches to its Act East policy and its intention to strengthen ties with the Indonesia and encourage its growing regional and global role, particularly within Asean Plus. frame.
Deeper ties between India and Indonesia must prioritize five key areas.
Defense Partnership: This must transcend routine exercises and coordinated patrols, focusing on defense exports and joint production initiatives. Indonesia has expressed interest in acquiring BrahMos missiles, although progress has been slower than the Philippines, which has accelerated its acquisition process. All eyes will be on Prabowos' visit, given his track record of diversifying defense procurement during his tenure as defense minister under President Joko Widodo. India must seize this opportunity to establish itself as a reliable defense partner.
Economic engagement and strengthening trade: Indonesia remains India's largest trading partner in Asean, but the bilateral trade volume has yet to reach the target of $50 billion per year. The persistence of non-tariff barriers in Indonesia and limited cohesion between the business communities on both sides are hampering progress. Streamlining business processes, promoting entrepreneurial collaboration and improving market access under the Asia-India Free Trade Agreement (currently under review) are essential steps. Additionally, India's support for Prabowo's national initiatives on nutrition, food security and public health could pave the way for government-to-government agreements and increased private sector participation. Improving the ease of doing business for Indian companies in Indonesia is equally important.
Energy and resource security: Indonesia plays a crucial role in India's energy and resource security as a major supplier of coal and palm oil. However, these exports should not be subject to political uncertainties or sudden restrictions. Ensuring stable and predictable trade policies will benefit both countries and promote greater economic cooperation.
Tourism and cultural exchanges: Tourism between the two countries has seen substantial growth, driven by direct flights to Bali and Jakarta. However, while Indian tourists flock to Indonesia, the reverse is less common. Indonesian tourists frequently visit destinations like Turkey, but India has yet to attract similar interest. Targeted promotional efforts and enhanced cultural exchange programs could boost Indonesian tourism to India. Enhancement of India's historical and spiritual monuments, festivals and wellness tourism can help bridge this gap.
Education and innovation: Education remains an underutilized area of India-Indonesia cooperation. Unlike countries like Malaysia, where an IIT campus has been established, Indonesia has limited engagement in academic collaboration with India. Most Indonesian students in India pursue religious studies, leaving significant untapped potential in the fields of science, technology and entrepreneurship. Expanding educational cooperation through institutional partnerships and encouraging Indonesian students to utilize scholarships available at Indian IITs could strengthen bilateral ties.
Indonesia's participation in the Indo-Pacific Ocean Initiative, where it partners with India, provides another avenue for enhanced collaboration. This should be amplified, with more emphasis on trilateral partnerships such as those between India, Australia and Indonesia. Indonesia's growing comfort in working with Australia could pave the way for deeper trilateral cooperation, benefiting Asean Plus, the Indian Ocean Rim Association (IORA) and broader regional ambitions.
Prabowos' visit can serve as a catalyst to address these areas and strengthen ties between India and Indonesia.
Gurjit Singh is a former ambassador to Germany, Indonesia, Ethiopia, ASEAN and the African Union, and an honorary professor at IIT Indore. The opinions expressed are personal
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