Prime Minister Narendra Modi received a call from Indonesian President-elect Prabowo Subianto on Thursday (June 20, 2024); the leaders utilised the opportunity to discuss steps to strengthen the Comprehensive Strategic Partnership between the two countries.

Prime Minister Modi wished Subianto success for his upcoming Presidency of Indonesia.

"Delighted to receive a phone call from President-elect Prabowo Subianto. Wished him success for his upcoming Presidency. We discussed ways to strengthen comprehensive strategic partnership between India and Indonesia that are based on our civilizational ties," Prime Minister Modi wrote on X, formerly Twitter.

Rapid Development of Bilateral Relations

India and Indonesia share close commercial and cultural contacts that are two-millennia old. Indonesian President Sukarno was the Chief Guest at independent India’s first Republic Day celebrations in 1950.

According to India’s Ministry of External Affairs (MEA), there has been a rapid development of bilateral relations in political, security, defence, commercial and cultural fields since the adoption of India’s ‘Look East Policy’ in 1991 and its upgradation to the ‘Act East’ in 2014.

In May 2018, the two sides agreed to establish a new Comprehensive Strategic Partnership during Prime Minister Modi’s visit to Jakarta at the invitation of the President Joko Widodo. The objective was to take Indonesia and India’s bilateral relationship into a new era. Both sides also agreed on a Shared Vision of India-Indonesia Maritime Cooperation in the Indo-Pacific.

Indonesia chaired the G20 Presidency for the year 2022. India assumed its year-long G20 presidency on December 1, 2022, taking over from Indonesia at a time of geopolitical tumult and uncertainty over post-pandemic economic recovery.

Close Cooperation In Diverse Sectors

Over the years, India and Indonesia have cooperated closely in diverse sectors including foreign affairs, defence and security, infrastructure, and energy.

A Joint Commission Mechanism (JCM) was set up at the Foreign Ministers' level in 2001, with the 7th JCM meeting being held in New Delhi in June 2022. It was co-chaired by India's External Affairs Minister S Jaishankar and Indonesia's Foreign Minister Retno Marsudi.

In 2016, the two sides decided to set up a Security Dialogue to develop a comprehensive action plan on security cooperation. The 2nd India-Indonesia Security Dialogue between the two countries was held in Indonesia in March 2022; it was co-chaired by India's National Security Advisor Ajit Doval and Indonesia's Coordinating Minister of Political, Legal and Security Affairs Mohammad Mahfud.

India and Indonesia also have Joint Working Groups on Counter-Terrorism, Narcotics, Energy, Coal, and Agriculture. At the same time, the two sides interact through the India-Indonesia Infrastructure Forum which also brings together top corporates in this sector from both the countries.

Robust Commercial Relationship

According to official figures, 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.

India is the second largest buyer of coal and crude palm oil from Indonesia and imports minerals, rubber, pulp and paper and hydrocarbons reserves. India exports refined petroleum products, commercial vehicles, telecommunication equipment, agriculture commodities, bovine meat, steel products and plastics to Indonesia.

The overall investment scenario in Indonesia is encouraging and it is an attractive destination for Indian investment in the region. Indian companies have made significant investments in infrastructure, power, textiles, steel, automotive, mining, banking and consumer goods sectors.

(With Agency Inputs)