India and Indonesia have announced a significant enhancement in their cooperation in various sectors, particularly focusing on defence manufacturing and supply chains. This decision was made during a meeting between Indian Prime Minister Narendra Modi and Indonesian President Prabowo Subianto on January 25, 2025, as part of Indonesia's participation as the chief guest at India's Republic Day celebrations.

Modi emphasised the commitment to collaborate in defence production, aiming to bolster both nations' capabilities in this critical sector. This includes joint efforts in manufacturing and streamlining supply chains.

Both leaders agreed to strengthen maritime security ties, which includes a new agreement focused on crime prevention, search and rescue operations, and capacity building. This is particularly relevant given the regional security dynamics influenced by China's activities in the South China Sea.

The discussions also covered enhanced cooperation in cybersecurity, counter-terrorism, and de-radicalization efforts. This reflects a mutual understanding of the importance of maintaining regional stability.

Both countries aim to diversify their trade basket and increase two-way trade, which surpassed $30 billion in 2024. They discussed market access and potential investments, particularly from India into Indonesia's infrastructure.

There is a shared interest in advancing cooperation in cutting-edge technologies such as FinTech, Artificial Intelligence, and digital public infrastructure.

In addition to the defence-related initiatives, several memorandums of understanding (MoUs) were signed covering:

Health cooperation
Digital development
Traditional medicine
Cultural exchanges

These agreements aim to address various challenges, including Indonesia's healthcare professional shortages, with India potentially providing support in training and resources.

This strategic partnership underscores the growing ties between India and Indonesia, positioning both nations as key players in maintaining peace and security within the Indo-Pacific region.

ANI