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India-Indonesia Relations

The India-Indonesia friendship, elevated to the level of Comprehensive Strategic Partnership in 2018, has widened bilateral relations to include defence industry collaboration, science, and technology

Issue: 6/2024 By Lt General P.C. Katoch (Retd)Photo(s): By PIB, SpokespersonMoD / X
(Left-Right) President of Indonesia, Prabowo Subianto was the Chief Guest for the 2025 Indian Republic Day parade

India had invited President Probowo Subianto of Indonesia to be the Chief Guest for India’s 76th Republic Day Parade on January 26, 2025. A former Army General and Defence Minister, Subianto was sworn in as the 8th President of Indonesia on October 20, 2024. Indonesia is the world’s most populous Muslim-majority nation.

India and Indonesia have strengthened their economic partnership, with bilateral trade touching $29.4 billion in FY 2023-24. Indonesia is India’s eighth-largest trading partner, while India ranks as the secondlargest buyer of Indonesian coal and crude palm oil, which points to the strategic bilateral partnership. India’s exports to Indonesia totaled $5.99 billion in 2024, with mineral fuels and vehicles among the top traded goods. Notably, Indonesia’s investments in India cumulatively valued at $653.88 million, spanning sectors such as automotives, pharmaceutical and banking.

The defence cooperation agreement signed in 2001 between India and Indonesia stipulated the establishment of the JDCC to explore and identify potential areas of cooperation, matters of common interest, initiate, coordinate, monitor and control the approved cooperative activities The 7th JDCC meeting was held at New Delhi on May 3, 2024, where both sides also exchanged views on regional and global issues of shared interest. The India-Indonesia friendship, which was elevated to the level of Comprehensive Strategic Partnership in 2018, has widened the scope of bilateral relations to allow for new collaboration in the realm of defence industry, science and technology etc. The defence relations form a significant pillar to this growing partnership.

Defence engagements between India and Indonesia have diversified to include wide-ranging contacts between the services, military-to-military exchanges, high-level visits, capacity building and training programmes, cooperation in UN Peacekeeping, ship visits and bilateral exercises.

According to news reports of January 11, 2025, Indonesia’s defence ministry has reportedly sent a letter regarding a $450 million BrahMos deal to the Indian Embassy in Jakarta. Also, India is reportedly offering a loan to Indonesia from either the State Bank of India or any other Indian national banks; specifics of which are being worked out. With Indonesia having joined BRICS in January 2024, the BrahMos deal, if it comes through, can be transacted in Indian and Indonesia currencies.

India-Indonesia bilateral relations have a bright future. Prime Minister Narendra Modi visited Jakarta, Indonesia in September 2023 to attend the 20th ASEAN-India Summit and 18th East Asia Summit. President Probowo Subianto of Indonesia to New Delhi this month would elevate the India-Indonesia Comprehensive Strategic Partnership further. An India-Indonesia BrahMos deal will be the icing on the cake.