Indonesia is navigating its relationship with India regarding the development of Sabang Port with caution, primarily due to concerns about China's potential reaction. This strategic port, located near the Malacca Strait, is seen as vital for enhancing India-Indonesia bilateral trade and military cooperation.

In recent years, India and Indonesia have engaged in discussions about developing Sabang Port, with a joint feasibility study completed in 2023. The port is expected to facilitate short-sea shipping in the Bay of Bengal and strengthen economic ties between the two countries, potentially boosting bilateral trade to $50 billion by 2025.

The Adani Group has shown interest in investing in this project, which is estimated to cost over $1 billion. However, progress has been slow, partly due to geopolitical sensitivities and internal challenges within India.


China's Concerns

China has expressed apprehension regarding India's involvement at Sabang Port, interpreting it as a potential military foothold that could threaten its maritime interests in the region. The Chinese media has warned that any military cooperation between India and Indonesia could provoke countermeasures from Beijing, reflecting a broader concern about India's growing influence in Southeast Asia. This sentiment underscores Indonesia's delicate balancing act; while it seeks to enhance ties with India, it must also manage its relationship with China, which is a significant investor in Indonesian infrastructure.

During a recent visit by Indonesian President Prabowo Subianto to India, both nations reaffirmed their commitment to enhancing cooperation across various sectors, including defence and trade. They discussed the importance of maintaining a rules-based order in the Indo-Pacific region amidst rising tensions related to China's assertiveness. The discussions included maritime security collaborations and the diversification of trade, indicating a shared interest in strengthening their partnership while being mindful of regional dynamics.

As Indonesia continues to explore opportunities for collaboration with India at Sabang Port, it remains cautious of China's response. The strategic significance of Sabang as a potential hub for both economic and military activities makes this situation particularly sensitive. Indonesia's approach reflects its broader strategy of "soft balancing" against China while seeking to bolster its own economic interests through partnerships with other powers like India.

Agencies