Bilateral Relations Bilateral Relations

Bilateral Relations


Embassy of India

Jakarta

***

INDIA - INDONESIA BILATERAL RELATIONS

 

India and Indonesia share two-millennia old close cultural and commercial contacts. Hindu, Buddhist and later Muslim faith traveled to Indonesia from the shores of India. The stories from great epics of Ramayana and Mahabharata form source of Indonesian folk art and dramas. The shared culture, colonial history and post-independence goals of political sovereignty, economic self-sufficiency and independent foreign policy are unifying factors of bilateral relationship.

2. The struggle against colonial powers and similar ethos of democratic traditions, pluralist culture, and progressive leadership are some of the common strands connecting India and Indonesia. President Sukarno of Indonesia was the Guest of Honour during the first Republic Day of India in 1950. Independent India and Indonesia became chief votaries of independence of Asian and African countries, the spirit of which led to historic Bandung Conference of 1955 and later formation of Non-Aligned Movement in 1961. Since the adoption of India’s ‘Look East Policy’ in 1991, and its upgradation to ‘Act East’ in 2014, there has been a rapid development of bilateral relations in political, security, defence, commercial and cultural fields. India has an Embassy in Jakarta, a Consulate General in Bali and Medan, and Honorary Consul in Surabaya.

HIGH-LEVEL EXCHANGES

3. India-Indonesia relations got a fillip during the visit of Prime Minister Shri Narendra Modi to Jakarta in 2018. Both countries signed Comprehensive Strategic Partnership and welcomed the adoption of the ‘Shared Vision on Maritime Cooperation in the Indo-Pacific between India and Indonesia’ which led to further deepening of the bilateral relations in defence sector.

4. PM met with President Prabowo Subianto on the sidelines of 19th G20 Leaders’ Summit at Rio de Janeiro, Brazil on 19 November 2024. PM received a congratulatory phone call on being elected as PM on 21 June 2024 from President-elect Prabowo Subianto. Minister of State for External Affairs, Shri Pabitra Margherita visited Jakarta as Special Envoy of the Prime Minister to attend the inauguration ceremony of President and Vice-President of Indonesia on 20 October 2024. PM attended the 17th G20 Leader’s Summit in November 2022 and 20th ASEAN-India Summit and East Asia Summit in September 2023. This was followed by visit of former President Joko Widodo to India to attend the G20 Leader’s Summit in September 2023. India also hosted virtual G20 Leaders’ Summit on 22nd November 2023. Mr. Airlangga Hartarto, Coordinating Minister for Economic Affairs, Indonesia attended the meeting on behalf of the President.

5. During the second Voice of Global South Summit organised by India on 17 November 2023, former President Joko Widodo shared his views in the inaugural Leaders’ session. Vice Minister for Trade Jerry Sambuaga participated in the 3rd Voice of Global South Summit on 17 August 2024.

6. External Affairs Minister(EAM) Dr. S Jaishankar met with Foreign Minister(FM) Sugiono during the sidelines of G7 Foreign Ministers’ Meeting on 25 November 2024 in Italy and on 23 October 2024 during BRICS plus Summit in Kazan, Russia. EAM visited Jakarta from 12-14 July 2023 for the Foreign Ministers’ Meetings under the ASEAN framework in the ASEAN-India, East Asia Summit and ASEAN Regional Forum format. On 12 July 2023, former Foreign Minister Retno Marsudi(FM) met with EAM and Foreign Minister Penny Wong (Australia) in a Trilateral meeting format. EAM visited Bali on 07-08 July 2022 to participate in the G20 Foreign Ministers’ Meeting (FMM). FM visited India to attend ASEAN-India Ministerial Meeting and 12th Delhi Dialogue held in Delhi from 15-17 June 2022. EAM and FM had several meetings on the sidelines of multilateral events, latest being ASEAN Meetings in Vientiane in July 2024.

7. Mr. Sandiaga Salahuddin Uno, then Minister of Tourism and Creative Economy visited India to take part in the Raisina Dialogue on 23rd February 2024.

BILATERAL INSTITUTIONAL MECHANISMS

8. Joint Commission Meeting: A Joint Commission Mechanism (JCM) was set up at the level of the Foreign Ministers following the signing of an MoU to this effect in January 2001. 7th JCM was held on 17 June 2022 in New Delhi was co-chaired by EAM Dr. S Jaishankar and former Foreign Minister of Indonesia Ms. Retno Marsudi.

9. Foreign Office Consultations: As a follow up to the decision taken at the 4th JCM, the first round of Foreign Office Consultations (FOCs) was held in Bali, Indonesia on 17 June 2013. 8th FOC took place between the two countries on 26 September 2024 at New Delhi.

10. India Indonesia Security Dialogue: During the State visit of Indonesian President Joko Widodo to India on 12-13 December 2016, the two leaders agreed to establish Security Dialogue in order to develop a comprehensive action plan on security cooperation. The 2nd Security Dialogue between the two countries was held in Indonesia on 17 March 2022. Shri Ajit Doval co-chaired the 2nd India-Indonesia Security Dialogue (IISD) with Dr. Mohammad Mahfud, former Coordinating Minister of Political, Legal and Security Affairs.

11. Defence Ministers’ Dialogue: Indonesian Defence Minister Prabawo Subianto visited India for Defence Ministerial Dialogue on 27 July 2020.

12. Consular Dialogue: The first India Indonesia Consular Dialogue was held in Yogyakarta on 1-3 July 2019. Indian delegation was led by Secretary (CPV& OIA) while the Indonesian delegation was led by the Director General for Protocol and Consular Affairs. India is likely to host the 2nd Consular dialogue in near future.

13. Interfaith Dialogue: MOS Mr. M.J. Akbar visited Yogyakarta on 3-5 October 2018 for the first India Indonesia Interfaith Dialogue as a follow-up to the visit of Prime Minister of India to Indonesia in May 2018. He led a 7-member delegation to the dialogue with Indonesia delegation which was led by the Vice Foreign Minister of Indonesia Mr. A.M. Fachir.

14. Joint Working Group on Counter Terrorism: Pursuant to the MoU for cooperation in Counter Terrorism signed in 2004, the first meeting of India Indonesia JWG on Counter-Terrorism was held in New Delhi in February 2005. The 6th meeting of Joint Working Group on Counter Terrorism was held in Jakarta on 23 August 2024.

15. Joint Working Group on Narcotics: 5th DG level Joint Working Group (JWG) meeting between Narcotics Control Bureau (NCB) of India and Indonesian National Anti-Narcotics Agency (BNN) was held on 30 August 2022 in virtual mode. The 6th Meeting of JWG was held on 30 August 2022 in virtual mode. The 7th Meeting of JWG was held on 07 December 2023 in virtual mode.

16. Joint Defence Cooperation Committee(JDCC) meeting – Defence Secretary Shri Giridhar Aramane and Air Marshal Donny Ermawan Taufanto, Secretary General of the Ministry of Defence, Indonesia co-chaired the 7th India-Indonesia Joint Defence Cooperation Committee (JDCC) meeting in New Delhi on May 03, 2024.

17. Biennial Trade Ministers’ Forum (BTMF): The first meeting of the BTMF took place in Jakarta in October 2011. The 2nd meeting of the BTMF was held in New Delhi on 25 September 2017. 3rd BTMF was held on 29 June 2020 through Video Conference, led by the Commerce and Industry Minister Shri Piyush goyal and the Trade Minister of Indonesia Mr. Agus Suparmanto.

18. Energy Forum: The Energy Forum co-chaired by the Minister of Coal from India and Minister of Energy and Mineral Resources from Indonesia was launched in January 2011 to help promote mutually beneficial G2G and B2B cooperation. The 1st Energy Forum was held in Jakarta on 20 April 2017. The 2nd Energy Forum will be conducted on the basis of outcomes following from JWG on Oil & Gas, JWG on Coal and JWG on New and Renewable Energy.

19. CEOs Forum: 1st CEOs Forum was held in Jakarta in 2013. 2nd CEO Forum took place during the visit of Prime Minister Narendra Modi on 29th May, 2018 and the group submitted the recommendations and outcome document to both the leaders. 3rd CEO Forum is likely to be scheduled in early 2025.

20. JWG on Oil and Gas: The first meeting of the JWG on Oil and Gas was held in June 2012 at Bali. The 2nd JWG was held on the sidelines of Energy Forum on 20 April 2017 in Jakarta. The MOU on cooperation in Oil and Gas, which expired in January 2016, was signed during the JWG meeting on 20 April 2017. 3rd JWG meeting was conducted virtually on 21 November 2022.

21. JWG on New and Renewable Energy: An MOU on new and renewable energy cooperation was signed in November 2015. The first JWG under this was held through digital video conference on 20 April 2017 on the sidelines of Energy Forum. Dates for holding the 2nd JWG are being finalized.

22. JWG on Coal: The JWG on Coal was established in 2010. India hosted the 3rd meeting of JWG in November 2015 in New Delhi. The 4th JWG meeting took place in Jakarta on 20 April 2017 along with Energy Forum. 5th JWG on Coal was held virtually on 5 November 2020.

23. JWG on Agriculture: Both sides signed an MoU for Cooperation in Agriculture in 2008. The 4th JWG on Agriculture was held in Jakarta on 17-18 April 2017. Both sides agreed to act on the matrix of Work Plan.

24. Civil Aviation Consultation: In order to enhance direct flight connectivity between India and Indonesia, both countries held Civil Aviation Consultation in New Delhi on 19-20 September 2018.

25. Meeting of Joint Committee on Space Cooperation: Joint Committee Meeting between ISRO and National Aeronautics and Space Institute of Indonesia (LAPAN) was held in Jakarta on 13-14 December 2018. This meeting was a followup to the Inter-Governmental Framework Agreement on Cooperation in the Exploration and Uses of Outer Space for Peaceful Purposes, signed during the visit of Prime Minister of India to Indonesia in May 2018. A virtual meeting was held on 25 May 2021 bewteen ISRO and LAPAN. In December 2021, ISRO and LAPAN concluded their inter-sessional meeting.

26. India Indonesia Pharmaceutical and Health-care Industry Forum: Embassy of India hosted the first India Indonesia Pharmaceutical and Health Industry Forum in partnership with Pharmaceuticals Export Promotion Council of India (Pharmexcil) & Indonesian Chamber of Commerce & Industry (KADIN) on 24 January 2019 in Jakarta. The 2nd IIPHIF was held between 26-28 June 2022 in which a Pharma delegation consisting of 50 Indian pharma companies led by Pharmexcil visited Jakarta between 26 to 28 June, 2022.

27. India Indonesia Infrastructure Forum: The Embassy hosted the first India Indonesia Infrastructure Forum Jakarta jointly with the Coordinating Ministry for Maritime Affairs and Ministry of Transportation on 19 March 2018 in Jakarta which was jointly inaugurated by H.E. Mr. Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and H.E. Mr. Budi Karya Sumadi, Minister of Transportation along with Indian Ambassador. 2nd edition of India Indonesia Infrastructure Forum was held on 19 March 2019 in Jakarta and the event was jointly inaugurated by H.E. Mr. Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and H.E. Mr. Nova Iriansyah Governor of Aceh along with the Indian Ambassador. A high-level delegation of nearly 30 plus Indian CEO’s from infrastructure sector focusing on Port, Power, Airport, Water Resource Management, Hospital Management Systems and Health Service, Industry 4.0 and IT solutions for Infrastructure Projects, with leading Indian companies was present.

28. Joint Task Force on Andaman & Nicobar Islands – Aceh Connectivity: Pursuant to the Joint Statement during the visit of Prime Minister of India to Jakarta in May 2018, a Joint Task Force (JTF) on “Andaman & Nicobar Islands – Aceh Connectivity” was set up. The inaugural meeting of JTF was convened on 7 December 2019 in Banda Aceh, The 2nd Joint Task Force (JTF) meeting was held in Port Blair, India on 19 December 2022 to discuss connectivity between Aceh and ANI. The 2nd JTF discussed progress and challenges for promoting trade & investment, connectivity, tourism, development of port infrastructure around Sabang, marine resources and fisheries, enhance academic cooperation and cultural relations and people-topeople contact between the ANI and Aceh. Indonesia will host the 3rd JTF in 2025.

COMMERCIAL RELATIONS

29. 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 and US$ 29.40 billion in 2023-24. India is the second largest buyer of coal and largest buyer of 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.

30. There are about 100 Indian investments / Joint Ventures in Indonesia. As per Indonesian authorities, Indian investment in Indonesia is USD 1.56 billion in 7292 projects during 2000-2024. But, as most investments come through Singapore and other gateways, the quantum of investment could be much more. Indian companies have made significant investments in infrastructure, power, textiles, steel, automotive, mining, banking and consumer goods sectors. Several medium and small Indian companies are operating coal mines in Indonesia.

31. Indonesia’s investment in India is limited to about US$ 654.12 million (April 2000- March 2024) (Source DIPP, INDIA). 16 Indonesian companies are present in India in agro products and poultry feed, processed food, paper, IT and placement, transportation and logistics sectors etc.

32. Direct connectivity between India and Indonesia: Direct Connectivity between India and Indonesia started in August 2023 by operation of Indigo flights between Mumbai and Jakarta. Vistara airlines commenced operation of flight between Delhi and Bali in December 2023 and between Bangalore and Bali in March 2024. India emerged as second largest source of tourists(more than 600,000) to Bali in 2023, after Australia. Overall in 2024, it stood at fifth position, behind Malaysia, Australia, Singapore, and China.

33. Banking and payment system: MoU on Local Currency Settlement System (LCSS) was signed on 07 March 2024 in Mumbai between the Governor of Reserve Bank of India and Bank Indonesia. Both organizations are in conversation to finalize the operating guidelines soon.

34. Healthcare: Indian companies are keen to share their expertise in the fields of capacity building, public healthcare, manufacturing of drugs, doctors and technicians training in Indian hospitals, speciality services, digitalization of healthcare by offering e-health platforms, medical equipment or advanced areas like bio-medicine and wellness through AYUSH. Indian international healthcare brands like Apollo Hospitals are working with Indonesian Mayapada Hospital group for building a green hospital in the new capital Ibu Kota Nusantara (IKN) for clinical collaboration, provide capacity building, technical training, hospital management services and for collaboration to make affordable and quality healthcare available to Indonesian people. Artemis Group of India has signed an MoU with Perkasa Hospital Services Indonesia that will offer services for Indonesians to get treated in India.

TRILATERAL MECHANISMS

35. India-Australia-Indonesia SOM was conducted on 16th July 2024 in virtual format. The three countries decided do bring up identifiable formal proposal and deliverables before presenting the proposal for trilateral FMM. The 2nd edition of India–Australia–Indonesia Trilateral Maritime Security Workshop (TMSW) was conducted from 15–17 May 2024, at INS Dronacharya, Kochi, India on the theme ‘Indian Ocean Region: Collaborative Efforts to Enhance Regional Maritime Security’. Maiden India-Indonesia-Australia trilateral Maritime Partnership Exercise also took place in September 2023.

DEFENCE COOPERATION 

36. Defence Relations between maritime neighbours, India and Indonesia, are a testament to the bilateral cooperation, collaboration and partnership. Established in 1951, formal agreement in Defence Cooperation was signed in 2001 and renewed in 2006. Both countries signed MoU on Defence Cooperation during the visit of PM Modi to Indonesia in 2018.

37. India and Indonesia cooperate in all facets of military engagements - Exercises/ Patrols, Training/ Courses, Bilateral & Multilateral Exercises, conclaves, symposiums & events, Subject Matter Experts Exchanges (SMEEs) and Defence Industry. Some of the cooperation activities are mentioned below:-

  1. Covid-19 response
  2. IND-INDO CORPAT
  3. Multilateral Naval Exercise Komodo
  4. Multilateral Naval Exercise Milan
  5. Bilateral Army Exercise Garuda Shakti
  6. Bilateral Naval Exercise Samudra Shakti
  7. Joint Defence Cooperation Committee
  8. Services Staff Talks
  9. Indian Coast Guard – Bakamla Cooperation
  10. Cross visits/ OTR of Warships and Aircraft
  11. Training Exchanges
  12. Subject Matter Experts Exchange
  13. ADMM Plus
  14. India-Indonesia Defence Industry Exhibition-cum-Seminar

38. In November 2023, Defence Ministers of the two countries met and held a bilateral meeting during Indonesia’s Presidency of ADMM Plus. The Defence Ministers reemphasised commitment to strengthen further, the ever deepening Defence and Security Cooperation and partner in all facets of Military Collaboration and Defence Industry partnerships.

39. First ever "India-Indonesia Defence Industry Exhibition-cum-Seminar" was held on 30 April 2024 at Jakarta. More than 40 prominent defence companies from India participated in the keystone Bilateral Defence Cooperation event, along with several Indonesian defence State Owned Enterprises and private defence establishments.

COOPERATION IN SCIENCE AND TECHNOLOGY

40. The MoU on Scientific and Technological Cooperation was signed during the visit of Prime Minister of India to Indonesia in May 2018. On 19 March 2024, signing ceremony of Implementation Agreement on Transfer of Title of Integrated Biak Telemetry, Tracking and Command (TTC) Facilities and Implementing Arrangement on Operation, Maintenance and Utilisation of Integrated Biak Telemetry, Tracking and Command (TTC) Facilities for Satellites and Launch Vehicles between Indian Space Research Organisation (ISRO) and National Research and Innovation Agency (BRIN) took place at Jakarta, Indonesia.

CULTURAL CENTRES

41. There are two Indian cultural centres in Indonesia. Jawahar Lal Nehru Indian Cultural Centre (JNICC) was established in 1989 and has been active in creating a cultural connectivity between India and Indonesia. Through JNICC’s outreach, collaborative events, presentations and in house training activities, it has brought together creative minds and extraordinary talents of the two culturally awakened nations. The cultural friendship of India and Indonesia date back to centuries & is full of commonalities. Currently, JNICC runs yoga and dance classes. Swami Vivekananda Cultural Centre, Bali (formerly Indian Cultural Centre, Bali) was inaugurated in October 2005 in the premises of Indian Consulate General. SVCC offers Yoga and Classical Dance (Odissi) classes regularly in person and online. SVCC also organises workshop on Yoga and Indian dances and participate in Indonesia cultural and allied activities on various occasions to promote Indian culture.

75 YEARS OF DIPLOMATIC RELATIONS

42. India and Indonesia commemorated 75 years of establishment of diplomatic relations in 2024. A number of activities were organised throughout the year including a joint logo design competition, Track 1.5 Jakarta Futures Forum in partnership with Observer Research Foundation and the Foreign Policy Community of Indonesia which was attended by Luhut Binsar Pandjaitan, Coordinating Minister of Maritime and Investment Affairs, Indonesia and Sandiaga Uno, Minister of Tourism and Creative Economy, Indonesia.

43. The 10th International Day of Yoga was celebrated at 75 venues across Indonesia. In August 2024, India-Indonesia Golf Cup was organised which was attended by diplomats, government officials, business leaders, and prominent members of the Indian and Indonesian communities. An International Conference “Echoes across the Waves: Revisiting the Intersections of India and Indonesia’s shared Cultural Heritage” was organised on 14th-15th September in Bali by Consulate General of India in Bali, Maulana Abul Kalam Azad Institute of Asian Studies (MAKAIAS), Ministry of Culture, Government of India and The Institute of Social and Cultural Studies (ISCS) an India based Think Tank. On 06 December 2024, Embassy of India, Jakarta and India Chamber of Commerce (IndCham) hosted ‘India-Indonesia Investment Synergy Forum: Bridging the future’ with an aim to find mutually beneficial opportunities for investment collaboration that can drive sustainable growth in priority areas of India and Indonesia’s economy.

COOPERATION IN EDUCATION

44. Indonesia is a major recipient of ITEC & TCS of Colombo Plan scholarships. ICCR offers 20 scholarships every year to Indonesian students for pursuing higher studies in India. At present, three ICCR chairs exist in Indonesian universities. The MoU on cooperation in Higher Education between India and Indonesia is currently being discussed by the two sides. ITEC offers 100 slots to Indonesia every year.

MULTILATERAL COOPERATION

45. India and Indonesia are part of multilateral groups like G20, IORA, NAM, IPEF, ASEAN+5. India and Indonesia are leading the ‘Working Group on Blue Economy’ with India being the Coordinating Country in IORA. In IPOI, France and Indonesia are working with India on the Maritimes Resource pillar.

INDIAN COMMUNITY

46. Most of the Indonesians of Indian Origin had migrated to Indonesia during the Dutch/British rule in the 19th & 20th Centuries. Majority of the PIO community are from South India. A significant number of them are also from North India to include Sindhis (around 10,000), Sikhs (around 10,000), Gujaratis and others. They are now fully assimilated with the local society over three to four generations, while maintaining their culture, faith, traditions, and also family and community linkages with India.

47. There are around 14,000 Indian Nationals (NRI) living in Indonesia including entrepreneurs, engineers, chartered accountants, IT professionals, consultants, bankers, and other professions. They are highly regarded in the Indonesian society. They are mainly concentrated in Greater Jakarta, Surabaya, and Bandung. The Indian diaspora (OCIs/NRIs) have strong community association and are actively engaged in organizing events to celebrate their cultural, religious and regional festivals in temples, gurudwaras, churches, and other such places. There are more than twenty (registered & unregistered) associations of Indian diaspora in different parts of Indonesia including Greater Jakarta, Medan, Bandung, Surabaya, etc.

***

 

Bilateral Relations