India-Indonesia Defence Cooperation

Context: India and Indonesia agreed to enhance collaboration in areas of defence industry, maritime security and multilateral cooperation at the 7th India-Indonesia Joint Defence Cooperation Committee. The meeting was held in New Delhi.

India and Indonesia Relations: Areas Of Cooperation

Economic Relations

• Indonesia has emerged as the second largest trading partner of India in the ASEAN region.
• Bilateral trade has increased from US$ 4.3 billion in 2005-06 to US$ 38.84 billion in 2022-23.
• Indonesia holds the 33rd position in terms of foreign direct investment (FDI) inflows to India during the period spanning April 2000 to March 2023.

Political and Strategic Partnerships

• Both countries support the Non-Aligned Movement and have historical ties through leaders like Nehru and Sukarno.
• In 2005, India and Indonesia agreed to establish a Strategic Partnership.
• By 2013, they had collaboratively evaluated its potential through the Five Initiatives aimed at strengthening this partnership.
• This assessment was grounded in their shared commitment to democracy, pluralism, and diversity, recognizing the strong complementary and challenging aspects of their economies.

Defence and Security Cooperation

• India and Indonesia have deepened their military and defence ties to enhance maritime security and address non-traditional security challenges like terrorism and piracy that both nations face​
• Their cooperation includes regular joint military exercises like Garuda Shakti, coordinated patrols, and dialogues at various levels including the biennial Defence Ministers’ Dialogue.

Cultural and Educational Exchanges

• India operates cultural centres in Jakarta and Bali and offers scholarships through ITEC and the Colombo Plan, with Indonesia being a significant recipient.
• The Indian Council of Cultural Relations (ICCR) provides scholarships to Indonesian students for higher education in India.

Energy Sector Cooperation

• Both countries are working together in the fields of coal, oil, gas, renewable energy, and energy conservation to meet growing energy demands and support infrastructure development.
• India is significantly involved in Indonesia’s oil and gas sectors and is a major buyer of Indonesian coal, indicating strong bilateral investments and energy trade.

Technology and Medicine

• India’s robust digital infrastructure and nearly 75,000 startups are backed by government initiatives, providing numerous opportunities for bilateral cooperation.
• Indian IT companies such as TCS, Tech Mahindra, and HCL have set up operations in Indonesia, reflecting a positive outlook from Jakarta on India’s technological capabilities.

Maritime Cooperation

• The close maritime proximity and shared interests in the security of the Indian Ocean region enhance their cooperation in maritime safety and security.
• Both countries have strengthened their maritime security collaboration through joint naval exercises like the India-Indonesia Coordinated Patrol (CORPAT) and the Samudra Shakti exercises.
• In 2018, “Shared Vision of India-Indonesia Maritime Cooperation in the Indo-Pacific” was announced.
  • The Shared Vision articulated common goals to improve maritime connectivity between the Andaman and Nicobar Islands and Sumatra, as well as developing the marine resources of both countries.

Regional and International Collaboration

• Both countries work together in international forums such as the Indian Ocean Rim Association, where Indonesia currently chairs, enhancing their roles in regional security and economic development.
• They are involved in projects like India’s Mausam Project and Indonesia’s Maritime Axis, which aim to strengthen ties with other Indian Ocean countries.

What are the Challenges?

• Strategic and Defence Approaches: Both countries have expressed concerns about China’s assertive behaviour in the region.
  • Indonesia’s maritime policy tends to emphasise economic benefits, whereas India focuses on strategic military capabilities, especially around critical chokepoints like the Strait of Malacca​.
• Economic and Regulatory Challenges: The economic relationship between India and Indonesia holds significant potential but is constrained by regulatory and investment challenges.
• Political and Strategic Alignment: While the strategic partnership has been strengthened, there remains a lack of common understanding on critical issues like Exclusive Economic Zones (EEZs) and maritime boundaries.
• Connectivity and People-to-People Ties: Challenges in connectivity, such as limited direct air services and strict visa regimes, have been impediments to enhancing trade and cultural exchanges.

Way Forward

• Deepening Defence Ties: Both countries should continue to expand their defence relationships by enhancing military exercises, boosting defence industry collaboration, and increasing maritime cooperation.
• Strengthening Economic and Commercial Relations: The economic ties between India and Indonesia can be further strengthened by focusing on areas like energy, technology, and pharmaceuticals.
• Promoting Connectivity and People-to-People Ties: Improving direct air connectivity and easing visa regulations can boost tourism and business exchanges.
• Addressing Maritime and Security Issues: Joint efforts should be made to secure critical sea lanes and address non-traditional security threats such as piracy and terrorism.
• Utilising Regional Platforms: Both countries should leverage their roles in ASEAN and other regional forums to promote regional stability and security.
• Joint Development Projects: Collaborative projects in infrastructure, energy, and digital technologies should be promoted.

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