Bilateral Relations Bilateral Relations

Bilateral Relations


 

INDIA - INDONESIA BILATERAL RELATIONS

HISTORICAL CONNECT

1. 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, 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 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 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, President Widodo shared his views in the inaugural Leaders’ session. Vice Minister for Trade Jerry Sambuaga participated in the 3rd Voice of Global South Summit.

6. External Affairs Minister(EAM) Dr. S Jaishankar 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, Indonesian Foreign Minister Retno Marsudi(FM) met with Foreign Minister Jaishankar 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, Minister of Tourism and Creative Economy visited India to take part in the Raisina Dialogue on 23rd February 2024.

8. 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 in Indonesia on 17 March 2022.

9. Joint Task Force on Andaman & Nicobar Islands – Aceh Connectivity: The inaugural meeting of Joint Task Force (JTF)  on ‘Andaman & Nicobar Islands – Aceh Connectivity’ 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-to-people contact between the ANI and Aceh.

COMMERCIAL RELATIONS

10. Indonesia has emerged as one of India’s largest trade partner in ASEAN region. The total bilateral trade in 2023-24 was US$ 26.69 billion. 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.

11. Indonesia is an attractive destination for Indian investment. There are about 30 Indian investments/Joint Ventures in Indonesia. As per Indonesian authorities, Indian investment in Indonesia is US$ 1.219 billion in 4750 projects during 2000-2024. As much of the investments come through Singapore and other gateways, the quantum of investment could be much more. In comparison, Indonesia’s investment in India is limited to about US$ 650.12 million (2000-2024) (Source DIPP, INDIA).

12. 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.

13. 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.

14. Healthcare: During COVID-19 pandemic and growing vaccine requirements globally, the Indian pharmaceutical and medical devices sector has played an indispensable role as the pharmacy of the world. 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 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 has signed an MOU with Perkasa Hospital Services Indonesia that will offer services for Indonesians to get treated in India.

15. Co-operation on Halal: In November 2023, three Indian agencies viz. JUHF Mumbai, Halal India Chennai and Jamiat Ulama e Hind Halal Trust New Delhi have signed mutual recognition agreement (MRA) with the Halal Product Assurance Organizing Agency (BPJPH), Indonesia to accelerate the completion of LHLN assessments for recognition and acceptance of halal certificates.

TRILATERAL MECHANISMS

16. 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 

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

18. 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 enumerated 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

19. In November 2023, Defence Ministers of the two countries met during Indonesia’s Presidency of ADMM Plus and also bilaterally for biennial Defence Ministers Dialogue at Jakarta. 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.

20. First ever "India-Indonesia Defence Industry Exhibition-cum-Seminar" was held on 30 April 2024 at Jakarta. Around 40-45 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. Top leadership of Indonesian MoD, Military, Coast Guard and defence companies participated in the Exhibition-cum-Seminar to seek and nurture partnerships between Indian and Indonesian Defence Industry ecosystem for a long-term cooperation in Defence R&D, innovation and manufacturing.

COOPERATION IN SCIENCE AND TECHNOLOGY

21. The MoU on Scientific and Technological Cooperation was signed during the visit of Prime Minister of India to Indonesia in May 2018. Two ground stations to receive data from satellites were set-up in Biak in Papua Province, which started functioning in January 1999 and 2005. 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

22. 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

23. India and Indonesia are commemorating 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.

24. 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.

COOPERATION IN EDUCATION 

25. 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

26. 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

26. 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.

27. 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.

 

 

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Bilateral Relations