Ringkasan Hubungan Bilateral Bilateral Relations

Bilateral Brief


INDIA-INDONESIA BILATERAL BRIEF 

INDIA-INDONESIA BILATERAL RELATIONS

India and Indonesia have shared two millennia of close cultural and commercial contacts. The Hindu, Buddhist and later Muslim faith travelled 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.

COMMERCIAL RELATIONS

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. It is an attractive destination for Indian investment in the region. There are about 30 Indian investments / Joint Ventures in Indonesia. As per Indonesian authorities, Indian investment in Indonesia is USD 1219 million in 4750 projects during 2000-2022. 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. Prominent Indian groups/companies such as Tata Power, Adani, L&T, GMR, GVK, Thermex, Aditya Birla, Jindal Stainless Steel, ESSAR, Ispat, Tata Motors, Mahindra, TVS, Royal Enfield, Minda, Godrej, Wipro, SBI and Bank of India, Bank of India, ICICI bank have established fully- owned subsidiaries/joint ventures in Indonesia. Several medium and small Indian companies are operating coal mines in Indonesia. IT companies - TCS, Tech Mahindra, Newgen Software, - have set up business units in Indonesia. Thermax International inaugurated (27 July 2017) its new manufacturing unit in Jakarta; Asian Paints inaugurated its factory (05 September 2017) in Jakarta; Lulu Group opened (06 September 2017) a new hypermarket in Jakarta and Crompton Greaves Ltd inaugurated Indonesia's first High Voltage Switchgear (TT) and Extra Voltage (TET) plant on 20 August 2018. In pharma sector, in February 2019, Macleods has set up a HIV drugs manufacturing facility in Semarang in JV with an Indonesian Company, Pt Sampharindo, with a total investment of US $ 3.4 million. In healthcare, Nephorplus, an Indian company, has tied up with Hermina Group of Hospitalis, for setting up dialysis centre in 80 hospitals.

In comparison, Indonesia’s investment in India is limited to about US$ 647.07 million (April 2000- Dec. 2022) (Source DIPP, INDIA). PT. Sumber Mitra Jaya has undertaken four projects for the National Highways Authority of India. Bukaka company is supplying aerobridges to the Airports Authority of India. Salim group from Indonesia invested in petroleum refinery, real estate and industrial township project in West Bengal, but later withdrew due to land acquisition issues. Garuda Foods has set up a joint venture with Polyflex Foods in Bangalore. Bank International Indonesia (BII) has opened a Branch in Mumbai with a capital base of US$ 28 million. CP Prima has invested US$ 2 million in Shrimp hatchery production in Andhra Pradesh and has plans to invest in Feedmill plants as well. Asian Paper & Pulp (APP), a subsidiary of Sinarmas, one of the largest industrial houses in Indonesia and APEDB signed an MoU on 9-1-2019 where APP will invest Rs 24,000 crore (US $3.5 billion) with a production of 5 million metric tonnes per annum by its pulp and paper manufacturing unit at Prakasam district of Andhra Pradesh. Asian Paper & Pulp (APP), a subsidiary of Sinarmas, also signed a MoU with Maharastra government worth INRs 20,000 crore to set up a palnt at Dherand, Raigad distrcit in leading market for packaging . There are 13 Indonesian Companies present in India in agro products, processed food, transportation, logistics sectors etc.

POLITICAL RELATIONS

Owing to struggle against colonial powers, democratic traditions, pluralist culture, and progressive leadership which both countries shared, India and Indonesia developed friendly relations. 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 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, there has been a rapid development of bilateral relations in political, security, defence, commercial and cultural fields. The current Government expressed its intent to further deepen the engagement with East Asia and by renaming the policy as “Act East”.

In 2022, Indonesia Chaired the G20 Presidency for the year 2022, a cooperation forum of 20 of the world's major economies. The Indonesian presidency began from December 1, 2021, to November 30, 2022. The theme of Indonesian G20 Presidency was "Recover Together, Recover Stronger." The Indonesian G20 Presidency organised more than 180 series of main activities, including Engagement Groups meetings, Working Groups meetings, Deputies/Sherpa-level meetings, Ministerial-level meetings, and the Heads of State meetings (Summit) in Bali. A series of meetings/events/activities were carried out in more than twenty cities in Indonesia. Indian delegations including VVIP/Ministerial level delegations visited Indonesia for several G20 related meetings. For instance, Shri S. Jaishankar, Hon’ble EAM visited Bali for the Foreign Minister’s Meeting in July 2022, Shri Om Birla, Hon’ble Speaker of Lok Sabha visited Jakarta for Parliament 20 Summit in Oct 2022 and other Ministers visited Indonesia for the related G20 meetings. The G20 Presidency of Indonesia culminated with the G20 Leaders’ Summit in Bali from 15-16 November 2022. Hon’ble Prime Minister Shri Narendra Modi led a large delegation to Bali for G20 Leaders’ Summit.

G20 PRESIDENCY UNDER INDIA – 2023

India assumed its year-long presidency of the Group of 20 (G20) from 1st December 2022, taking over from Indonesia at a time of geopolitical tumult and uncertainty over post-pandemic economic recovery. The theme of India’s G20 Presidency is “Vasudhaiva Kutumbakam” or “One Earth, One Family, One Future”, it is drawn from the ancient Sanskrit text of the Maha Upanishad. Essentially, the theme affirms the value of all life – human, animal, plant, and microorganisms – and their interconnectedness on the planet Earth and in the wider universe. The G20 Logo draws inspiration from the vibrant colours of India’s national flag – saffron, white and green, and blue. It juxtaposes planet Earth with the lotus, India’s national flower that reflects growth amid challenges. The Earth reflects India’s pro-planet approach to life, one in perfect harmony with nature. Below the G20 logo is “Bharat”, written in the Devanagari script. India will hold more than 200 meetings across some 50 cities involving ministers, officials and civil society, leading up to a marquee summit in the capital New Delhi in September 2023.

Major meetings held so far during India’s G20 Presidency are mentioned below. Indonesia sent large delegations in these meetings.

i) 1st Sherpa meeting in Udaipur during 4-7 December 2022

ii) 1st Finance & Central Bank Deputies meeting in Bengaluru during 13-15 December 2022

iii) 1st meeting of Development Working Group in Mumbai during 13-16 December 2022

iv) 1st Infrastructure Working Group meeting in Pune during 16-17 January 2023

v) 1st Health Working Group meeting in Thiruvananthapuram during 18-20 January 2023

vi) 1st International Financial Architecture Working Group meeting in Chandigarh during 30-31 January 2023

vii) 1st G20 Education Working Group meeting in Chennai during 1-2 February 2023

viii) 1st Sustainable Finance Working Group meeting in Guwahati during 2-3 February 2023

ix) 1st Employment Working Group meeting in Jodhpur during 2-4 February 2023

x) 1st Energy Transitions Working Group meeting in Bengaluru during 6-7 February 2023

xi) 1st Tourism Working Group Meeting in Gujarat during 7-9 February 2023

xii) 1st Environment and Climate Sustainability Working Group meeting in Bengaluru during 9-11 February 2023

xiii) 1st Agriculture Deputies Meeting of Agriculture Working Group in Indore during 13-15 February 2023

xiv) 1st Digital Economy Working Group meeting in Lucknow during 13-15 February

xv) 1st Culture Working Group meeting in Khajuraho during 22-25 February 2023

xvi) 1st Finance Ministers Central Bank Governors and 2nd G20 Finance & Central Bank Deputies Meetings in Bengaluru during 22-25 February 2023

HIGH LEVEL VISITS/MEETINGS/TELECON

G20 Leaders’ Summit

  • Hon’ble Prime Minister Narendra Modi led a high level delegation visited Bali from 14-16 November 2022, Indonesia to attend the 17th G20 Summit in Bali. During the Summit, G20 Leaders deliberated upon key issues of global concern under the Summit theme of “Recover Together, Recover Stronger”. Three working sessions were held as part of the G20 Summit Agenda. These are food and energy security, health, and digital transformation. On the sidelines of the Summit, Hon’ble Prime Minister held several bilateral meetings with his counterparts from other G20 member states including France, UK, Italy, Singapore, Germany, Australia and few pull aside meetings to brief them on India’s evolving G20 priorities. He also addressed and interacted with the Indian community in Bali. At the closing session of the Summit, the Indonesian President symbolically handed over the G20 Presidency to Prime Minister Modi. India will formally assume the G20 Presidency from 1st December 2022.

  • Lok Sabha Speaker Shri Om Birla attended G20 Speaker’s Summit P20, Jakarta from 06-07 October 2022. During the visit, Hon’ble Speaker met with several high level Indonesian dignitaries including Mrs. Puan Maharani, Speaker of the House of Representatives of the Republic of Indonesia. He also addressed Indian community members.

  • Prime Minister Shri Narendra Modi met the President of Indonesia, H.E Mr. Joko Widodo on the sidelines of the G7 Summit in Elmau, Germany (27/06/2022). In a meeting with President Joko Widodo, Hon’ble Prime Minister Narendra Modi discussed various bilateral issues between India and Indonesia. Both the leaders had wide ranging conversations on improving trade and cultural ties between our countries. India greatly cherishes the strong bond with Indonesia.

  • Prime Minister Shri Narendra Modi met the President of Indonesia, H.E Mr. Joko Widodo in Italy on the sidelines of G20 Summit in Rome, Italy on 31 October 2021. During the meeting, they had wide ranging discussions, including cooperation in G20 (Indonesia will take over G20 Presidency next year, followed by India). The two leaders appreciated each other’s support during the COVID-19 pandemic, and agreed to cooperate towards post-pandemic recovery. They also emphasized the importance of Indo-Pacific cooperation. Both leaders committed to strengthen bilateral trade and investment between the two countries, and pave way for greater people-to-people interaction. Discussions also took place on combating climate change, particularly on the need for implementation of climate finance commitments.

  • Prime Minister Shri Narendra Modi had a telephone conversation with President Joko Widodo on 21st November 2020. During the phone call, Prime Minister thanked the Indonesian President for the swapping of G20 Presidency for 2022 with India. As a result of this arrangement, G20 Summit is now being hosted by Indonesia in 2022, and India in 2023.

  • Telephonic conversation between Prime Minister Narendra Modi and President Joko Widodo in April 2020: Prime Minister Shri Narendra Modi held a telephonic conversation with President Joko Widodo on dealing with health and economic challenges posed by COVID-19 pandemic, especially ensuring uninterrupted supply of medical and pharmaceutical products.

  • Meeting of Prime Minister Narendra Modi with President Joko Widodo in November 2019 at ASEAN Summit: Prime Minister Shri Narendra Modi met with the President of Indonesia Mr. Joko Widodo the sidelines of ASEAN Summit in Bangkok on 3 November 2019 during which the two leaders they resolved to focus on connectivity, trade & investment and Indo-Pacific and work closely to deal with the threats of terrorism and extremism.

  • Meeting between Prime Minister Narendra Modi & President Joko Widodo in June 2019 during G20 Summit in Osaka: Prime Minister Shri Narendra Modi and President Joko Widodo met on the sidelines of G20 Summit at INTEX Osaka, Japan on 29 June 2019 where they discussed about enhancing economic and maritime cooperation between the two countries. They reiterated the commitment to achieve the target of US$50 billion bilateral trade by 2025 and expand maritime connectivity – physical, economic & people-to-people between Aceh and Andaman & Nicobar Islands.

  • Visit of Prime Minister Narendra Modi in May 2018: Prime Minister Shri Narendra Modi visited Jakarta on 29-31 May 2018 at the invitation of the President of Indonesia Mr. Joko Widodo. During this visit, both Leaders agreed to strengthen cooperation in all areas by establishing a New Comprehensive Strategic Partnership to take Indonesia and India’s bilateral relationship into a new era. 15 agreements/MoUs were signed between the two countries including nine G2G MoUs in the areas defence cooperation, cooperation in the exploration and uses of outer space for peaceful purposes, Scientific and Technological Cooperation, Technical Cooperation in Railways sector, Health Cooperation, on Pharmaceutical, Biological and Cosmetics Regulatory Functions, on Policy dialogue between Governments and Interaction between Think Tanks. Both sides also agreed on a Shared Vision of India-Indonesia Maritime Cooperation in the Indo-Pacific (first country).

  • Visit of President Joko Widodo to India in January 2018: President Joko Widodo visited India from 25-26 January, 2018 to participate in the ASEAN-India Commemorative Summit and to be the Guest of Honour at the 69th Republic Day celebrations of India along with other Heads of States of ASEAN countries. President Jokowi held a bilateral meeting with Prime Minister Narendra Modi on the sidelines of the ASEAN-India Summit on 25 January 2018. The two leaders discussed issues of bilateral interest, including efforts for increasing economic cooperation as the bilateral trade between the two countries had enormous potential. President Jokowi also invited Prime Minister Narendra Modi to visit Indonesia in 2018.

  • Visit of President Joko Widodo to India in December 2016: President of Indonesia Joko Widodo paid a State visit to India from 12-13 December 2016 during which the two leaders held talks and reviewed the entire gamut of bilateral relations. Three agreements were signed during the visit - MoU on Youth Affairs and Sports Cooperation; MoU on Standardization Cooperation; and Joint Communique on Illegal, Unregulated and Unreported (IUU) Fishing and To Promote Sustainable Fisheries Governance. The two sides also issued a Joint Statement; A Statement on Maritime Cooperation which mandates both sides to draw up a MoU for cooperation in this area; and agreed to annual meetings of the leaders. The two sides agreed to commence Strategic Dialogue, Security Dialogue and to negotiate a new Comprehensive Defence Cooperation Agreement.

VISITS/MEETINGS OF EAM / MOS FOR EXTERNAL AFFAIRS SINCE 2018

  • External Affairs Minister Dr. S. Jaishakar met Indonesian Foreign Minister H.E. Ms Retno L. P. Marsudi on 20 September 2022, during sidelines of UNGA in New York. Ministers discussed several issues including India’s commitment to make the Indonesian G20 Presidency successful and also exchanged views on Myanmar.

  • Visit of External Affairs Minister Dr S. Jaishankar to Bali, Indonesia for G20 Foreign Minister’s Meeting (FMM) during 7-8 July 2022: External Affairs Minister (EAM), Dr. S. Jaishankar visited Bali, Indonesia on 07-08 July 2022 to participate in the G20 Foreign Ministers’ Meeting (FMM). The Ministry of Foreign Affairs of the Republic of Indonesia held the meeting within the framework of Indonesia G20 Presidency. At the FMM, participating foreign ministers deliberated on issues of contemporary relevance, such as strengthening multilateralism and current global challenges including food and energy security. During the visit, EAM held several bilateral meetings with his counterparts from other G20 member states including China, EU, Brazil, Senegal, Mexico, UAE, Saudi Arabia, Russia, France, Republic of Korea, USA, Netherlands and few pull aside meetings. EAM’s participation in the G20 FMM will strengthen India’s engagement with G20 member states. As a G20 troika member and as the incoming G20 Presidency, India’s role in the upcoming FMM discussions assumes even greater importance. We are currently extending steadfast support to the Indonesian Presidency, and will be taking forward discussions on contemporary global challenges, with a view to achieving meaningful outcomes, during our Presidency.

  • 7th Joint Commission Meeting (JCM) held in Delhi on 17th June 2022: On 17th June 2022, the 7th Joint Commission Meeting (JCM) took place in Delhi where Indian delegation was led by Dr. S. Jaishankar, Hon’ble Minister of External Affairs and Indonesian delegation was led by H.E. Mrs. Retno Marsudi, Minister of Foreign Affairs of Indonesia. Both Ministers reviewed the bilateral relations and discussed the way ahead for further strengthening the India-Indonesia Comprehensive Strategic Partnership. The Ministers signed the "Agreement on exemption from visa requirement for holders of diplomatic and official/service passports". They also witnessed the exchange of "MoU between the Narcotics Control Bureau (NCB) of India and National Narcotics Board of Indonesia on combating illicit trafficking in Narcotic Drugs, Psychotropic Substances and their Precursors”, and "MoU between National Sugar Institute, Kanpur and Politeknic Perkebunan LPP, Yogyakarta”. Both Ministers exchanged views on international and regional issues including Indo-Pacific. EAM expressed solidarity with Indonesia for its Chairmanship of the G20 and supported its priorities.

  • EAM Dr S Jaishankar had a telecon with Indonesian Foreign Minister H.E Retno Marsudi on 20th May 2022. Both the leaders exchanged views on G20 developments and progress. During telecon EAM conveyed that India is fully supportive of the Indonesian Presidency.

  • In 2021, Hon’ble External Affairs Minister Dr S Jaishankar met Indonesian Foreign Minister H.E Retno L P Marsudi thrice – on the sidelines of G20 Summit in Italy on 29 October 2021, on the sidelines of UNGA in New York on 21 September 2021, and on the sidelines of G20 Foreign Ministers’ Meeting in Italy on 28 June, 2021. During these meetings, the Ministers discussed various aspects of bilateral and multilateral cooperation, as well as COVID19 pandemic related matters. On 05 January, 2022, the Ministers also exchanged New Year greetings over a telephone call.

  • EAM Dr S Jaishankar had a telecon with Indonesian Foreign Minister H.E Retno Marsudi on 20 April 2021 to discuss about regional issues pertaining to the military coup in Myanmar which took place in February 2021. EAM also held a telecon with Indonesian Foreign Minister H.E Retno Marsudi on 20 November, 2020, a day before Prime Minister Modi talked to President Jokowi to thank him for the swapping arrangement for G20 Presidency.

  • Visit of EAM Dr S Jaishankar to Jakarta in September 2019 : Dr. S. Jaishankar, EAM paid an official visit to Indonesia on 5th September 2019. This was EAM’s first bilateral visit in the ASEAN region and maiden visit to Indonesia, after assuming charge as EAM. During the visit, EAM had a detailed discussions with Foreign Minister of Indonesia H.E. Mrs. Retno Marsudi, across a broad spectrum of bilateral relations. He also held meetings with senior leadership of the Indonesian Government, including with H.E. General (Retd.) Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs, and H.E. General (Retd) Wiranto, Coordinating Minister for Political, Legal, and Security Affairs. EAM also called on H.E. Jusuf Kalla, Hon’ble Vice President of the Government of the Republic of Indonesia. He called on the former President and Chairwoman of Indonesian Democratic Party of Struggle (PDIP) H.E. Megawati Sukarnoputri and recalling her strong association with India, extended an invitation to visit India at the earliest. At a function held in the evening of 5th September, EAM presided over the web launch of the Representative office of CII in Jakarta. H.E. Mr. Thomas Trikasih Lembong, Chairman of Indonesia Investment Coordinating Board was also present at the inaugural function. At the same function, EAM along with Indonesian leadership jointly released a commemorative stamp on Mahatma Gandhi, as part of the ongoing celebrations to mark the 150th birth anniversary of Mahatma.

  • EAM’s meeting with Indonesian Foreign Minister at ASEAN Ministerial Meeting in Bangkok: EAM Dr. S. Jaishankar met his Indonesian counterpart Mrs. Retno Marsudi on the sidelines of ASEAN Foreign Ministers’ Meeting in Bangkok on 1 August 2019. They discussed about enhancing strategic, economic, Indo-Pacific cooperation between the two countries. They reiterated the need to hold the first meeting of the Joint Task Force on expanding maritime connectivity between Aceh and Andaman & Nicobar Island (ANI).

  • EAM’s visit to Jakarta for the 5th JCM in 2018 and the AINTT: EAM Smt. Sushma Swaraj visited Jakarta for the 5th Joint Commission Meeting (JCM) between India and Indonesia and for the ASEAN-India Network of Think Tanks (AINTT) meeting on 5-6 January 2018. EAM and FM Mrs. Retno Marsudi of Indonesia jointly Co-Chaired the 5th Meeting of the JCM. The two leaders discussed whole gamut of issues – political, defence, trade and investment, culture, tourism, skill development and people to people contact. There was consensus on strengthening of bilateral Strategic Partnership by adding more defence and security cooperation and diversifying economic and investment linkages. Both sides also agreed to step up cooperation in the areas of joint development of defence industry. Both sides unequivocally condemned terrorism in all forms, irrespective of its motivation or origin. EAM and FM also jointly inaugurated the 5th ASEAN-India Network of Think Tanks. EAM also held talks with Secretary General of ASEAN and discussed strengthening of India’s engagement with ASEAN countries under its “Act East Policy”. During her visit, EAM also called on Vice President of Indonesia Jusuf Kalla. Both leaders discussed ways to strengthen the Strategic Partnership between the two countries. EAM also addressed the Indian community gathering in Jakarta on 6 January 2018.

  • MOS for External Affairs Shri V Muralidharan interacted virtually with Vice Minister of Foreign Affairs Mr. Mahendra Siregar on 10 June 2021 to review bilateral relations. MOS Mr. M.J. Akbar visited Yogyakarta on 3-5 October 2018 for the 1st 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. Prior to this, MOS visited Jakarta on 28-31 July 2018 to conduct preparatory meetings on convening the 1st India Indonesia Interfaith Dialogue in October 2018, During the visit, MOS(MJA) met with H.E. Retno Marsudi, Foreign Minister of Indonesia, General (Retd). Wiranto, Coordinating Minister for Political, Legal, and Security Affairs, Dr. Haider Nashir, Chairman of Muhammadiah, and Prof. Dr. KH. Said Aqil Siradj, Chairman of Nahldatul Ulama, MOS MJA also met Lt. General TNI (Retd.) Agus Widjojo, Governor of Lemhannas and Sri Paku Alam X, the Deputy Governor of Yogyakarta Special Region.

OTHER MINISTERIAL VISITS FROM INDIA TO INDONESIA

  • Minister of Agriculture & Farmers Welfare Shri Narendra Singh Tomar attended G20 Agriculture Minister's Meeting in Bali from 27-29 September 2022.

  • Minister of State for Tourism Shri Shripad Yesso Naik to attend G20 Tourism Ministerial Meeting in Bali from 25-28 September 2022.

  • Minister of Commerce and Industry and Minister of Consumer Affairs, Food and Public Distribution Shri Piyush Goyal attended G20 Trade and Industry Minister's Meeting in Bali from 21-23 September 2022.

  • Minister of State for Parliamentary Affairs & Culture, Shri Arjun Ram Meghwal led 4 members delegation to attend Culture Ministerial Meeting from 12-13 September 2022 in Yogyakarta, Indonesia.

  • Minister of Electronics and Information Technology, Shri Ashwini Vaishnav led 5 members delegation to attend Digital Economy Ministerial Meeting from 31 August to 01 September 2022 in Bali, Indonesia.

  • Minister of Education and Minister of Skill Development & Entrepreneurship, Shri Dharmendra Pradhan led 5 members delegation to attend G20 Education Minister Meeting from 30 August to 02 September 2022 in Bali Indonesia.

  • Minister of State for External Affairs and Education Shri RRS Singh visited Jakarta, Indonesia from 28-30 August 2022 to launch the ASEAN-India Network of Universities (AINU).

  • Minister for Environment, forest and Climate Change, Shri Bhupender Yadav led 11 members delegation to attend Joint Environment and Climate Ministers’ Meeting from 28 August-01 September 2022 in Bali, Indonesia.

  • Minister of Women and Child Development of India, Ms. Smriti Zubin Irani led 5 members delegation to attend G20 Ministerial Conference on Women Empowerment from 24-26 August 2022 in Bali, Indonesia.

  • Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman led 13 members delegation to attend 3rd Finance Ministers and Central Bank Governor Meeting held from15-16 July 2022 in Bali, Indonesia.

  • Visit of National Security Advisor Shri Ajit Doval: H.E. Mr. Ajit Doval, Hon’ble National Security Advisor (NSA) led a six members delegation to Jakarta, Indonesia from 16th to 18th March 2022. Hon’ble NSA Mr. Ajit Doval co-chaired the 2nd India-Indonesia Security Dialogue (IISD) with Dr. Mohammad Mahfud, Coordinating Minister of Political, Legal and Security Affairs on 17th March 2022. Both the sides discussed bilateral issues including cooperation in Counter Terrorism, Maritime, Defence and Cyber Security. Subsequently, Both the leaders signed the Memorandum of Understanding for Security Dialogue to further strengthen cooperation on political and security issues. A Joint Press Release was also issued on 2nd IISD.

  • Visit of Deputy National Security Advisor (DNSA) to Jakarta in Dec 2021: Hon’ble Deputy National Security Advisor (DNSA), Mr. Pankaj Saran led a three members delegation to Jakarta, Indonesia on 9th to 10th December, 2021. DNSA met with Minister of Defence, H.E Mr. Prabowo Subianto, Vice Minister of Foreign Affairs, H.E. Mr. Mahendra Siregar and other high level dignitaries. The delegation held comprehensive discussions on bilateral issues with relevant Minister/ Deputies Ministers /Officials of Indonesia. Defence Minister of Indonesia, H.E. Mr. Prabowo Subianto signed the Condolence Book opened in honour and memory CDS General Bipin Rawat and cherished the bond shared during his visit to India in July 2020.

  • Visit of Raksha Mantri Mrs. Nirmala Sitharaman: Raksha Mantri Mrs. Nirmala Sitharaman visited Indonesia from 21-24 October 2018 for bilateral talks on defence. In line with the elevation of relationship between the two countries to a Comprehensive Strategic Partnership, the two sides discussed areas of enhancing cooperation, including strengthening maritime and coastal security, through improved information sharing and conduct of specialized training courses. She held discussions with her Indonesian counterpart Gen (Retd) Ryamizard Rycudu, Coordinating Minister for Maritime Affairs Gen (Retd) Luhut Panjaitan and Coordinating Minister for Political, Legal and Security Affairs Gen (Retd) Wiranto during her stay. She also went to Yogyakarta and met with the Governor of Yogyakarta Sri Sultan Hamengkubuwana X.

  • Visit of MoS of Planning (IC) and Chemical and Fertilizers, Mr. Rao Inderjit Singh: 3rd Para Asian Games were held in Jakarta from 6 October 2018 to 14 October 2018. Hon’ble Minister of Planning (IC) and Chemical and Fertilizers, Mr. Rao Inderjit Singh visited Jakarta from 5-14 October 2018.

  • Visit of MoS of External Affairs Mr. M.J. Akbar: As a follow up to the visit of Prime Minister of India to Indonesia in May 2018, India and Indonesia held the first Interfaith Dialogue in Yogyakarta from 3-5 October 2018. Minister of State of External Affairs Mr. M.J. Akbar led a 7-member delegation and held discussion with Indonesian delegation which was led by Vice Minister of Foreign Affairs of Indonesia Mr. A.M. Fachir. Previously, the Minister of State also visited Indonesia from 28-31 July 2018 to discuss the next steps on convening the 1st India Indonesia Interfaith Dialogue (IIID) in October 2018. During the visit, MOS(MJA) met with Mrs. Retno Marsudi, Foreign Minister of Indonesia, General (Retd). Wiranto, Coordinating Minister for Political, Legal, and Security Affairs, Dr. Haider Nashir, Chairman of Muhammadiah, and Prof. Dr. KH. Said Aqil Siradj, Chairman of Nahldatul Ulama,

  • Visit of MoS of Sports and Youth Affairs, Col (Retd.) Rajyavardan Rathore: 18th Asian Games were held in Jakarta and Palembang from 18 August 2018 to 2 September 2018. Minister of State of Sports and Youth Affairs, Col (Retd.) Rajyavardan Rathore visited Jakarta from 25 -29 August 2018. Para Asian Games 2018 were held in Jakarta from 6-15 October 2018. During the games, Minister of State (IC) for Planning and MoS for Chemicals and Fertilizers Mr. Rao Inderjit Singh visited Jakarta from 5-14th October, 2018.

RECENT MINISTERIAL VISITS FROM INDONESIA:

  • Deputy Minister for Political, Legal, Defence and Security Affairs of the Ministry of National Development Planning of Indonesia (BAPPENAS), Mr. Slamet Soedarsono visited India during 15-19 January 2023 to attend the Think-20 meeting (under the auspices of G20) held in Bhopal. He also held a series of meetings at various Ministries in Delhi.

  • Minister of Transportation of Indonesia, Mr. Budi Karya Sumadi visited India on 14-16 December 2022 and had a meeting with Minister of Civil Aviation, Shri Jyotiraditya M. Scindia. The visit was extremely successful, discussions were held on initiating direct flight connectivity between India and Indonesia.

  • H.E. Dr. Md Mahfud, Hon’ble Coordinating Minister of Political, Legal and Security Affairs visited India during 28 Nov-1 Dec 2022 at the invitation of India's National Security Advisor Shri Ajit Doval. During the visit Dr. Mahfud called on Hon’ble Prime Minister Narendra Modi and External Affairs Minister Dr. S. Jaishankar. Dr. Mahfud was accompanied by a delegation of ulemas and leaders of other faiths in Indonesia to India for interaction and meeting with their Indian counterparts. The visit was quite successful.

  • Deputy Chief of Police, Indonesia Prof. Dr. Gatot Eddy Pramono, M.Si, visited India during 18-19 November 2022 to attend the 3rd “No Money for Terror”, Ministerial Conference on Counter-Terrorism Financing and 90th Interpol General Assembly meeting.

  • Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Mr. Arsjad Rasjid along with Ms. Shinta Kamdani, Chair of B20 Indonesia 2022 visited India between 10-12 Oct, 2022 to meet the Chair of the G20 India Sherpa Amitabh Kant in New Delhi, India. The purpose of the visit is to ensure that the smooth leadership transition for the next G20 Presidency in Bali and India later.

  • Minister of Trade of Indonesia Mr. Zulkifli Hasan led a delegation of Indonesia's trade mission to New Delhi on 22nd August, 2022. The visit to India is the first working visit of the Minister of Trade abroad. In this trade mission, the Minister of Trade accompanied by the Director General of National Export Development held a series of meetings with business people, with the main activity being the 'Indonesia-India Roundtable Business Engagement'. The main achievement of the trade mission this time was the signing of 22 trade agreements, included palm oil (CPO) products, olein, coal, furniture, plastic tools, as well as pulp and paper with a potential value of USD 3.2 billion or around Rp. 46.98 trillion.

  • Foreign Minister of Indonesia Mrs Retno Marsudi visited India to attend ASEAN-India Ministerial Meeting and 12th Delhi Dialogue held in Delhi from 15-17 June 2022. During the visit she also co-chaired the 7th Joint Commission Meeting between Indian and Indonesia, with Dr. S. Jaishankar, External Affairs Minister of India, held on 17 June 2022.

  • Visit of Indonesian Defence Minister Gen. Prabawo Subianto for Defence Ministerial Dialogue on 27 July 2020. He was the first Minister of any country that was received in India during COVID pandemic. During the visit Mr. Prabowo met with RM and NSA and held extensive talks on various bilateral issues including requirement of forty thousand fishing vessels for Indonesia’s fishing industry and proposed cooperation with India. Furthermore, he requested for support from our Ministry of Agriculture for engaging key personnel of Indian Agricultural Institutes and establishments regarding cereals, carbohydrates and fishery products. On 21 Jan 2021 RM and Defence Minister Gen. Prabowo Subianto had an extensive telephonic call where bilateral issues were discussed in brief. On 22 April 2021, RM again had a telephonic conversation with Indonesian Defence Minister to convey condolences over the news of missing Indonesian submarine KRI Nanggala along with its 53 sailors in the sea of Bali.

  • Minister of Trade of Indonesia Mr.Agus Suparmanto visited India from 19-21 February 2020 and held meeting with Commerce and Industry Minister of India Shri Piyush Goyal.

  • Acting Gov. of Aceh Mr. Nova Iriansyah visited India from 16-21 February 2020. His itinerary included visits to New Delhi, Chennai and Andaman & Nicobar (A&N) Islands. In Delhi, he held discussions with MoS Mr. V. Muraleedharan, CIM Mr. Piyush Goyal and Secretary (East) Mrs. Vijay Thakur Singh. Discussions were held on a range of bilateral issues including connectivity, trade & investment and people to people ties. In Chennai (18 Feb) he met with Governor of Tamil Nadu and held discussions on developing Aceh's SEZ. In A&N Islands (19 Feb) he met Lt. Governor of A&N and discussed impetus to direct flights/cruise tourism & trade, import of quarry products, construction material, cement, stone aggregate, pre-fab structures etc.

  • Deputy Minister of Defence Mr. Sakti Wahyu Trenggono attended DefExpo 2020 in Lucknow, India on 5 February. He attended the exhibition along with the Director General of Defence Marsda Dody Trisunu, Kabaranahan Maj. Gen. Budi Prijono, Director of Technology and Defence Industry Sriyanto, and other special assistants of the Deputy Minister of Defence.

  • Foreign Minister of Indonesia Ms. Retno Marsudi visited India to co-chair the 6th Joint Commission Meeting between India and Indoensia with Dr. S Jaishankar, External Affairs Minister on 13 December 2019. During her visit, she also delivered keynote address at the Delhi Dialogue XI on 13 December 2019.

  • Minister of Trade of Indonesia Mr. Enggartiasto Lukita visited India as the leader of the ASEAN troika and held dialogue with India on the Regional Comprehensive Economic Partnership (RCEP) in July 2019.

  • Minister of Trade of Indonesia Mr Enggartiasto Lukita visited India on 21-23 February, 2019 to attend 4th India ASEAN Expo & Summit in New Delhi.

  • Vice Minister of Foreign Affairs of Indonesia Mr. A.M. Fachir visited Delhi on 19-20 July 2018 to attend 10th edition of Delhi Dialogue (DDX) and delivered a speech at the event.

  • Minister of Tourism Mr. Arief Yahya travelled on the inaugural Garuda flight connecting Bali and Mumbai on 23 April 2018 along with the President Director of Garuda Indonesian and officials from Angkasa Pura I.

  • Coordinating Minister for Maritime Affairs Mr. Luhut Binsar Pandjaitan visited India on 17-18 May 2018 and had meetings with External Affairs Minister, Commerce and Industry Minister, Minister of State of Civil Aviation and also interacted with members of CII.

  • Minister of Trade of Indonesia Mr. Enggartisto Lukita participated at the Informal WTO Ministerial Gathering in New Delhi on 20 March 2018.

  • Director General for Legal Affairs and International Treaties Dr Ir. Damos Dumoli Agusman, Indonesia (DGLA) visited India on 7-8 March 2018. During the visit, DGLA initiated the talk of India-Indonesia maritime delimitation.

  • Defence Minister of Indonesia General (Retd) Ryamizard Ryacudu, visited New Delhi from 17-19 January 2018 to participate in India-Indonesia Biennial Defence Ministers' Dialogue on 19 January 2018. The two sides discussed on furthering cooperation in the area of defence industry and defence technology. He delivered a Keynote Speech in the Raisina Dialogue.

  • Coordinating Minister of Political, Legal and Security Affairs of Republic of Indonesia Gen Wiranto visited India on 8-9 January 2018 for the first India Indonesia Security Dialogue during which both sides reviewed all aspects of bilateral cooperation including defence and security cooperation.

  • Minister of Trade of Indonesia Mr. Enggartisto Lukita visited New Delhi on 25 September 2017 to participate in 2nd Bilateral Trade Minister’s Forum. He held talks with Mr. Suresh Prabhu, Commerce and Industry Minister and discussed ways and means of enhancing trade and investment.

  • Minister of National Development Planning of Indonesia Mr. Sofyan Djalil visited New Delhi from 17-19 February 2016 to participate in Delhi Dialogue VIII. Mr. Wiranto, Coordinating Minister for Political, Legal and Security Affairs visited India on 14-15 March 2017 to participate in the Counter Terrorism Conference (CTC) 2017 held in New Delhi.

  • Minister of Transportation Mr. Jonan Ignasius led a delegation to India from 12-16 February 2016 at the invitation of Ms. Nirmala Seetharaman, Minister for Commerce & Industry for exploring opportunities for economic cooperation between the two countries. He led the delegation to ‘Make in India’ event in Mumbai and met CIM, Minister of Civil Aviation and MoS (Ministry of Railways).

PARLIAMENTARY EXCHANGES

  • There has been regular Parliamentary exchanges between the two countries. During 06-07 October 2022, Hon’ble Lok Sabha Speaker Shri Om Birla led a delegation to Jakarta for the P20 Summit, as part of G-20 meetings. Both countries have established an Inter-Parliamentary Friendship Group. A delegation from DPR Commission visited India from 6-12 December 2015 which was followed by the visit of delegation from DPD from 10-16 December 2015. A 13-member Indian Parliamentary Goodwill Delegation led by Hon’ble Mr. Ravi Prakash Verma, Member of Parliament, visited Indonesia from 14-18 April 2016. A Great Indonesia Movement (Gerindra) party Parliamentary delegation led by Mr. Ahmad Muzani, Member of Parliament, visited New Delhi from 27 August to 2 September 2016 to learn about Elections Mechanism in India, People Empowerment and new initiatives being taken in Agricultural sector. An Indian Parliamentary delegation led by Lok Sabha Speaker Mrs. Sumitra Mahajan visited Bali to participate in World Parliamentary Forum on Sustainable Development on 5-7 September 2017. A delegation of Indonesia-India Parliamentary Friendship group led by Hon’ble Mr. Satya Widya Yudha visited India on 24-27 September 2017. Another delegation from DPR Parliamentary Commission I visited India from 27 to 31 October 2018. In 2019, a 10-member Parliamentary Delegation of Commission I (Law, Politics and Government) of the House of Representatives of Aceh Province, Indonesia visited India from 14-20 July 2019. Dr. Agus Hermanto, Deputy Speaker of National House of Representative for Industry and Development visited India on 19-23 August 2019. During Parliament 20 (P20) event held in Jakarta on 6-7 October 2022, Parliament Speakers of both the countries held bilateral meeting on the margins of P20 and agreed to strengthen bilateral cooperation through parliament exchanges and cooperation. India and Indonesia are members of Inter-Parliamentary Union (IPU). Recently the speakers of both the countries met on the sidelines of the 146th Assembly of the IPU held in Manama, Bahrain during 11-15 March 2023.



BILATERAL INSTITUTIONAL MECHANISMS

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. Led by Smt. Sushma Swaraj, External Affairs Minister and Ms. Retno Marsudi, Indonesian Foreign Minister, the 5th JCM was held on 5 January 2018 in Jakarta. 6th Joint Commission Meeting took place in New Delhi which was co-chaired by EAM Dr. S Jaishankar and Foreign Minister of Indonesia Mrs. Retno Marsudi. 7th JCM was held on 17 June 2022 in New Delhi was co-chaired by EAM Dr. S Jaishankar and Foreign Minister of Indonesia Mrs. Retno Marsudi.

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. The 4th Indonesia-India Foreign Office Consultation meeting took place in New Delhi, on 15 December 2017. 5th Foreign Office Consultation took place between the two countries on 22 January 2019 at Yogyakarta, Indonesia. 6th Foreign Office Consultation (FOC) took place between the two countries on 25 June 2021 on Virtual Platform. 7th Foreign Office Consultation(FOC) took place between the two countries on 14 April 2022 in Jakarta.

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. Accordingly, Gen. (Retd) H. Wiranto, Coordinating Minister for Political, Legal and Security Affairs, of Indonesia visited India and met Shri Ajit Doval, National Security Advisor on 9 January 2018 for the first meeting of India-Indonesia Security Dialogue. Shri Ajit Doval co-chaired the 2nd India-Indonesia Security Dialogue (IISD) with Dr. Mohammad Mahfud, Coordinating Minister of Political, Legal and Security Affairs on 17th March 2022. The 2nd Security Dialogue between the two countries was held in Indonesia on 17 March 2022. The Indian and Indonesian delegation were respectively led by NSA Shri Ajit Doval and Prof. Dr. Mahfud MD, Coordinating Minister for Political, Legal and Security Affairs.

Defence Ministers’ Dialogue: Shri AK Antony, Defence Minister visited Indonesia on 15-17 October 2012 for the bilateral Defence Ministers’ Dialogue. Defence Minister Nirmala Sitharaman visited Indonesia on 21-24 October 2018 and held meetings with her counterpart as well as Coordinating Minister for Maritime Affairs and Coordinating Minister for Political, Legal and Security Affairs.

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) Mr. Sanjiv Arora while the Indonesian delegation was led by the Director General for Protocol and Consular Affairs Mr. Andri Hadi. India is set to host the 2nd Consular dialogue in near future.

Interfaith Dialogue: MOS Mr. M.J. Akbar visited Yogyakarta on 3-5 October 2018 for the 1st 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.

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. 5th meeting of Joint Working Group on Counter Terrorism took place in New Delhi on 10-11 September 2018. Both sides are preparing to hold 6th meeting of JWG on Counter terrorism in Indonesia.

Joint Working Group on Narcotics: 3rd DG level Joint Working Group (JWG) meeting between Narcotics Control Bureau (NCB) of India and Indonesian National Anti-Narcotics Agency (BNN) was held on 28 – 29 June 2018 in New Delhi.The 4th Meeting of JWG was held on 17 December 2020. The 5th Meeting of JWG was held on 30 August 2022 in virtual mode.

Biennial Trade Ministers’ Forum (BTMF): The 1st 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. Trade Minister H.E. Mr. Enggartiasto Lukita led a 12-member delegation to the meeting while Indian delegation was led by Commerce and Industry Minister of India,Shri Suresh Prabhu. 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.

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. MOS (I/C) for Coal, Power, New & Renewable Energy and Mines Shri Piyush Goyal and his Indonesian counterpart H.E. Mr. Ignasius Jonan, Minister of Energy and Mineral Resources jointly led the Energy Forum.

CEOs Forum: The 1st meeting of the CEOs Forum was held in Jakarta in October 2013. Both sides reconstituted their list of CEOs and the 1st meeting of the reconstituted CEOs Forum was held on 12 December 2016 on the sidelines of the VVIP visit in New Delhi. The 2nd CEOs Forum was held on 29-30 May 2018 in Jakarta, coinciding with the visit of Prime Minister of India Shri Narendra Modi to Jakarta.

JWG on Oil and Gas: The 1st 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. Dates for holding the 3rd JWG are being finalized.

JWG on New and Renewable Energy: An MOU on new and renewable energy cooperation was signed in November 2015. The 1st JWG under this MOU was held through digital video conference on 20 April 2017 on the sidelines of Energy Forum. Dates for holding the 2rd JWG are being finalized.

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.

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.

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.

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 follow-up 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.

India Indonesia Pharmaceutical and Health-care Industry Forum: Embassy of India hosted the 1st India Indonesia Pharmaceutical and Health Industry Forum in partnership with Pharmaceuticals Export Promotion Council of India (Pharmexcil) & Indonesian Chamber of Commerce & Industry (KADIN) at Hotel Westin on 24th January, 2019. A 19-member business delegation from Pharmexcil representing various streams of drug and pharmaceuticals including Homeopathy, Ayurveda and herbal medicines participated at the 1st IIPHIF. The 2nd IIPHIF was held JWG Marriott between 26-28 June 2022. A business delegation of 47 companies representing various streams of drug and pharmaceuticals including generic (API), Homeopathy, Ayurveda and herbal medicines participated.

Recently, a Pharma delegation consisting of 50 Indian pharma companies led by Pharmexcil visited Jakarta between 26 to 28 June, 2022. Pharmaceutical Business Seminar was organised on 27th June, 2022 which was attended by participatnts from Ministry of Health, Indonesia, BPOM, GP Farmasi & KADIN. Around 49 Indonesian pharma companies as well as a delegation of SAMES (the Servico Autonomo de Medicamentos e Equipamentos de Saude) (the National Medical Stores of Timor Leste – to strengthen medicines procurement, warehousing and distribution) from Timor-Leste participated in the event.

India Indonesia Infrastructure Forum: The Embassy hosted the 1st 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 Ambassador. It was also decided by both sides that such forum would be made an annual feature. 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 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. The third edition of IIIF which was to be held in March 2020 could not be held due to onset of Covid-19 Pandemic.

CONNECTIVITY BETWEEN ANDAMAN AND ACEH

During the official visit of the Prime Minister of India to Indonesia on 29-30 May 2018, both Leaders underlined the importance of stronger connectivity, particularly on sea links, in order to facilitate economic cooperation and people-to-people contact between two maritime neighbours and comprehensive strategic partners. As a follow-up to the Joint Statement, in July 2018, the 1st Business Forum was held in Banda Aceh in which an Indian delegation led by the Ambassador of India. Mr. Pradeep Kumar Rawat and comprising of members of Andaman Chamber of Commerce and Industry (ACCI) and officials from Andaman and Nicobar Administration participated.

On 5th November 2018, a Focus Group Discussion titled ‘Enhancing Business Connectivity between Aceh and Andaman & Nicobar’ was organized in Banda Aceh in which the Ambassador of India and the Head of Policy Analysis & Development, Ministry of Foreign Affairs delivered key note addresses. A team of 3 researchers from Aceh also visited Andaman from 23 to 28 November to further explore the benefits and potential of enhancing physical connectivity between Andaman & Nicobar and Aceh.

A 30-member delegation consisting of members of Chamber of Commerce of Aceh (KADIN-Aceh), state and local enterprises, shipping and logistics companies, academics, media and officials of Foreign Ministries of Indonesia visited Port Blair via Chennai and held India Indonesia Business forum (IIBF) on 29th November 2018. The forum aimed to facilitate the commercial and people to people linkages between Andaman and Nicobar Islands of India with Aceh and North Sumatera Province of Indonesia. It was attended by the members of (ACCI) and officials of Andaman and Nicobar Administration. During the forum, Memorandum of Understanding was also signed between (KADIN-Aceh) and ACCI.

On 29 December 2018, a special vessel carrying samples of products and raw material from Aceh was flagged off from Banda Aceh and it reached Port Blair on 4 January 2019 and handed the sample over to ACCI in the presence of Indonesian Embassy officials and Andaman Administration officials.

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) was set up by India and Indonesia. A preliminary Joint Task Force Leader’s meeting was held in Jakarta on 3rd September 2019, n which Indian delegation was led by Joint Secretary (South) Mr. Manish and Indonesian delegation was led by Director (South and Central Asia) Mr. Ferdy Piay. Leaders of the JTF discussed about the terms of reference of the JTF meeting and also on the date of its first meeting.

The inaugural meeting of JTF was convened on 7 December 2019 in Banda Aceh, which included site visit to Sabang Island. The meeting focussed on development of port related infrastructure in and around Sabang and working together for sustainable development of marine resources and fisheries.

On 4 February 2022, MEA signed an agreement with RITES awarding the work for preparation of DPR for development of Sabang Port to RITES.

On 15 March 2022, Joint Working Group(JWG) Meeting on development of port infrastructure in and around Sabang was held in person, in Sabang. The Indian delegation was led by Mr. Mandeep Singh Randhawa, Director, Ministry of Ports, Shipping and Waterways.

Inauguration of Joint Project Office at Sabang and Signing of MoU between RITES and BPKS: Ambassador of India to Indonesia Shri Manoj Kumar Bharti and Deputy Coordinating Minister for Maritime Sovereignty and Energy, Government of Indonesia H.E. Basilio D Araujo inaugurated Joint Project Office of Rail India Technical and Economic Service (RITES) Ltd. and Badan Pengusahaan Kawasab Sabang (BPKS), a Government of Indonesia entity in Sabang, Aceh, Indonesia on 26 March 2022 in Sabang Indonesia. This was followed by signing of MoU between RITES and BPKS. A team of RITES Ltd. wass stationed in Sabang to carry out a joint feasibility study/ DPR regarding development of Sabang Port. DPR has been prepared by the RITES team.

2nd Joint Task Force (JTF): As part of ongoing efforts to develop connectivity between Indonesia and India, 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 to promote trade & investment, connectivity, tourism, development of port infrastructure around Sabang, marine resources and fisheries, enhance academic cooperation and cultural relations and people-to-people contact between the ANI and Aceh. Large number of delegates participated from both India and Indonesia. The Indonesian delegation was led by the Director for South and Central Asia of the Ministry of Foreign Affairs Yohannes Jatmiko Heru Prasetyo, while the Indian delegation was led by Shri Vishvas Sapkal, Joint Secretary, Ministry of External Affairs.



COMMERCIAL RELATIONS

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$ 26.17 billion in 2021-22 US$ 35.54 billion (Jan-Nov., 22). 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. It is an attractive destination for Indian investment in the region. There are about 30 Indian investments / Joint Ventures in Indonesia. As per Indonesian authorities, Indian investment in Indonesia is USD 1140.88 million in 4343 projects during 2000-2021 (till Sep.) {USD 86.4 Million in 768 projects during 2022}. 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. Prominent Indian groups/companies such as Tata Power, Reliance, Adani, L&T, GMR, GVK, Trimex, Videocon, Punj Lloyd, CG Power, Madhucon, Spice, Indo Rama, Aditya Birla, JK Industries, Jindal Stainless Steel, ESSAR, Ispat, Tata Motors, Mahindra, TVS, Bajaj, Royal Enfield, Minda, Godrej, Wipro, SBI and Bank of India have established fully-owned subsidiaries/joint ventures in Indonesia. Several medium and small Indian companies are operating coal mines in Indonesia. IT companies - TCS, Tech Mahindra, HCL and Altruist - have set up business units in Indonesia. Recently, Thermax International inaugurated (27 July 2017) its new manufacturing unit in Jakarta; Asian Paints inaugurated its factory (05 September 2017) in Jakarta; Lulu Group opened (06 September 2017) a new hypermarket in Jakarta and Crompton Greaves Ltd inaugurated Indonesia's first High Voltage Switchgear (TT) and Extra Voltage (TET) plant on 20 August 2018. In pharma sector, in February 2019, Macleods has set up a HIV drugs manufacturing facility in Semarang in JV with an Indonesian Company, Pt Sampharindo, with a total investment of US $ 3.4 million. In healthcare, Nephorplus, an Indian company, has tied up with Hermina Group of Hospitalis, for setting up dialysis centre in 80 hospitals.

India’s GMR Airports Limited will be developing and operating Kualanamu International Airport (KNO) in Medan, Indonesia. Medan is the 4th largest urban area in the country and is capital of North Sumatra province. GMR will enter into 49:51 partnership with state owned enterprise Angkasa Pura 2 (AP2). The consortium will transform Kualanamu International Airport into Western International hub of Indonesia. GMR Airports Limited (GAL) signed the Shareholders’ Agreement (SHA) and Share Subscription Agreement (SSA) with Angkasa Pura 2 (AP2) for the development of Medan’s Kualanamu International Airport on 23rd December 2021.

Perum Bulog, an State owned enterprises signed a Memorandum of Undertanding (MoU) regarding a Business to Business trade agreement with the Indian Company Allanasons Pvt. Ltd, on September 23, 2022. The signing was witnessed by the Minister of Trade of the Republic of Indonesia Zulkifli Hasan and the Minister of Trade and Industry of India, Shri Piyush Goyal on the sidelines of a series of TII-MM meetings with a number of trade ministers of G20 member countries. This trade agreement was in an effort to maintain price stability and supply availability of several important basic commodities between the two countries and the role of SOEs in supporting G20 activities. As per MoU, Allanasons Pvt. Ltd will export desired volumes of Frozen Halal Buffalo Meat to BULOG to fulfill the common objective of maintaining food security and price stability of the animal protein in Indonesia

In comparison, Indonesia’s investment in India is limited to about US$ 640.49 million (April 2000- March, 2022) US$ 645.48 million (April 2000-September, 2022)(Source DIPP, INDIA) . PT. Sumber Mitra Jaya has undertaken four projects for the National Highways Authority of India. Bukaka company is supplying aerobridges to the Airports Authority of India. Salim group from Indonesia invested in petroleum refinery, real estate and industrial township project in West Bengal, but later withdrew due to land acquisition issues. Garuda Foods has set up a joint venture with Polyflex Foods in Bangalore. Bank International Indonesia (BII) has opened a Branch in Mumbai with a capital base of US$ 28 million. CP Prima has invested US$ 2 million in Shrimp hatchery production in Andhra Pradesh and has plans to invest in Feedmill plants as well.Asian Paper & Pulp (APP), a subsidiary of Sinarmas, one of the largest industrial houses in Indonesia and APEDB signed an MoU on 9-1-2019 where APP will invest Rs 24,000 crore (US $3.5 billion) with a production of 5 million metric tonnes per annum by its pulp and paper manufacturing unit at Prakasam district of Andhra Pradesh. There are 13 Indonesian Companies present in India in agro products, processed food, transportation, logistics sectors etc.

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Bilateral Brief