A new opportunity for New Delhi and Jakarta

Jan 11, 2025 08:05 PM IST

Deeper India-Indonesia ties need prioritising five key areas.

Defence partnership: This must transcend routine exercises and coordinated patrols, focusing on defence exports and joint production initiatives. Indonesia has shown interest in acquiring BrahMos missiles, though progress has been slower compared to the Philippines, which expedited its procurement process. All eyes will be on Prabowo’s visit, given his track record of diversifying defence purchases during his tenure as defence minister under President Joko Widodo. India must seize this opportunity to establish itself as a reliable defence partner.

Economic engagement and trade enhancement: Indonesia remains India’s largest trading partner in the Asean, but bilateral trade volume has yet to reach the targeted $50 billion annually. Persistent non-tariff barriers in Indonesia and limited cohesion among business communities on both sides hinder progress. Streamlining trade processes, fostering entrepreneurial collaboration, and enhancing market access under the Asean-India Free Trade Agreement (currently under review) are vital steps. Additionally, India’s support for Prabowo’s domestic initiatives in nutrition, food security, and public health could pave the way for government-to-government agreements and increased private-sector involvement. 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 policy uncertainties or sudden restrictions. Ensuring stable and predictable trade policies will benefit both countries and foster greater economic cooperation.

Tourism and cultural exchange: 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 programmes could stimulate Indonesian tourism to India. Highlighting India’s historical and spiritual landmarks, festivals, and wellness tourism may help bridge this gap.

Education and innovation: Education remains an under-utilised area of cooperation between India and Indonesia. Unlike countries such as 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 potential untapped in science, technology, and entrepreneurship. Expanding educational cooperation through institutional partnerships and encouraging Indonesian students to utilise available scholarships at Indian IITs could strengthen bilateral ties.

Indonesia’s involvement in the Indo-Pacific Oceans Initiative, where it partners with India, presents another avenue for enhanced collaboration. This should be amplified, with trilateral partnerships such as India-Australia-Indonesia receiving greater emphasis. 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.

Prabowo’s visit can serve as a catalyst for addressing these areas and unlocking deeper 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 views expressed are personal