India and Indonesia took significant steps to deepen their defense and economic partnership during Indonesian President Prabowo Subianto’s state visit to New Delhi, India.
As the chief guest at India’s Republic Day celebrations, President Subianto’s visit marked a pivotal moment in bilateral relations, with both nations committing to enhanced collaboration across multiple sectors.
In a joint statement issued on Sunday, India pledged to support Indonesia’s defense modernization efforts by sharing expertise and experience. The two countries also agreed to address lingering trade barriers, including tariff and non-tariff issues, to boost economic engagement.
Defense and Security Cooperation
Recognizing the importance of building domestic defense capabilities, President Subianto praised India’s advancements in defense manufacturing and expressed interest in strengthening ties in this sector. Both nations reaffirmed their commitment to deepening collaboration through the Joint Defence Cooperation Committee (JDCC).
Notably, Indonesia is in advanced negotiations with India to acquire the BrahMos missile system, with a broad understanding on pricing reportedly reached. The deal, valued at approximately $450 million, underscores the growing defense partnership between the two nations.
Economic and Trade Ties
Indonesia is India’s second-largest trading partner within the 10-member Association of Southeast Asian Nations (ASEAN). Bilateral trade has surged from 4.3billionin2005−06to4.3billionin2005−06to29.4 billion in 2023-24. India is a major buyer of Indonesian coal and crude palm oil, while its exports to Indonesia include refined petroleum products, commercial vehicles, telecommunications equipment, and agricultural commodities.
Prime Minister Narendra Modi and President Subianto emphasized the need to resolve trade barriers by convening the second meeting of the Working Group on Trade and Investment (WGTI) and the fourth Biennial Trade Ministers’ Forum (BMTF). They also called for the early conclusion of the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA) to unlock greater economic potential. Over the past decade, India-ASEAN trade has nearly doubled to $130 billion, making the bloc one of India’s largest trade and investment partners.
Indo-Pacific and Maritime Security
The leaders reaffirmed their commitment to maintaining peace, stability, and freedom of navigation in the Indo-Pacific region. They emphasized the importance of resolving disputes peacefully in accordance with international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
Both nations supported the full implementation of the Declaration on the Conduct of Parties in the South China Sea (DOC) and expressed hope for an early conclusion of an effective and substantive Code of Conduct (COC) in the region. This comes amid China’s ongoing territorial disputes with several ASEAN members, including Malaysia, the Philippines, and Vietnam.
India reiterated its vision for a free, open, and inclusive Indo-Pacific, grounded in respect for sovereignty and territorial integrity. President Subianto welcomed India’s efforts to enhance maritime security cooperation and its engagement with regional mechanisms to safeguard sea lanes of communication.
Counterterrorism and Global Challenges
India and Indonesia strongly condemned terrorism in all its forms and pledged to strengthen cooperation in combating the threat through bilateral and multilateral initiatives. The leaders emphasized the need to eliminate terrorist financing, prevent recruitment, and dismantle safe havens and support networks in line with international obligations.
Emerging Technologies and Renewable Energy
The two nations also agreed to accelerate collaboration in digital public infrastructure, cybersecurity, and digital capacity building. A Memorandum of Understanding (MoU) signed during the visit aims to harness the power of emerging technologies for inclusive growth and addressing global challenges.
In the energy sector, both leaders committed to achieving their renewable energy goals and expressed interest in joint exploration and mining projects, particularly for critical minerals like nickel, bauxite, silica, and tin, with a focus on downstream sectors.
A Historic Visit
President Subianto’s visit, accompanied by a high-level delegation of ministers, officials, and business leaders, coincided with the 75th anniversary of India-Indonesia diplomatic relations. His presence at India’s Republic Day celebrations underscored the deepening ties between the two nations, setting the stage for a stronger partnership in the years to come.
By prioritizing defense, trade, and regional security, India and Indonesia have laid the groundwork for a robust and multifaceted relationship that promises to benefit not only their citizens but also the broader Indo-Pacific region.
