Maritime to digital: India and Indonesia lean on history to forge future

After the bilateral talks in Hyderabad House, Prime Minister Modi addressed him as “brother” and said they have decided to work in the field of “defence manufacturing” and “supply chains” to take forward the defence cooperation.

He also said that both sides have decided to strengthen cooperation in the field of maritime security, cyber security, counter-terrorism and de-radicalisation. He said that the two sides will conduct joint exercises by their respective disaster management teams.

“Crime prevention, search and rescue, and capacity building will be strengthened after the signing of the maritime security pact,” he said.

Modi described Indonesia as an “important partner” of India in the 10-nation ASEAN bloc as well as in the Indo-Pacific, noting that both countries are committed to a rules-based order in the region.

“We agree that the freedom of navigation should be ensured in line with international law,” Modi said amid growing global concerns over China’s increasing assertive behaviour in the Indo-Pacific region.

Subianto is seen to have made concessions on the South China Sea issue in September 2024. A China-Indonesia joint statement in English agreed to jointly develop “areas of overlapping claims”. This implied a shift in Indonesia’s previous stance to one that recognised China’s nine-dash line. However, shortly thereafter, Indonesia’s Ministry of Foreign Affairs issued a statement in Indonesian, clarifying that the joint statement does not imply Indonesia’s recognition of the nine-dash line.

Prime Minister Narendra Modi hugs Indonesian President Prabowo Subianto. (Express photo by Praveen Khanna)

Both sides also agreed to cooperate on Fintech, Artificial Intelligence, Internet of Things and Digital Public Infrastructure. Modi said India has shared its experiences in implementing the Mid-day meal scheme and public distribution system. Secretary (East) in MEA Jaideep Mazumdar said that Subianto is replicating the mid-day meal scheme in Indonesian schools.

Modi also said that they have agreed to cooperate in the fields of energy, critical minerals, space and STEM education.

He welcomed Indonesia in the BRICS grouping, and said that the two countries work together in G20 and ASEAN groupings.

Referring to Modi as my “good brother”, Subianto said that the Indonesian side will send a high-level defence delegation to India to follow up on the recent ratification of the defence pact.

Calling the talks “very frank,” Subianto said: “I have given directions to our officials that we need to accelerate the economic partnership with India.”

The Indonesian President emphasised on economic cooperation, and asked Indian investors and companies to come and participate in the infrastructure development in Indonesia. Mazumdar said that Subianto had invited Indian companies to develop ports including the Sabang port.

He also said that he has “given direction to the team to expedite and cut bureaucracy, cut too much over regulation” to pursue common bilateral interest and “increase economic partnership” with India.

The Indonesian President pitched for stronger educational cooperation, increase of Indonesian students studying in India and invited Indian educational institutions to open campuses in Indonesia. Indian officials said that he has also asked Indian medical colleges to open campuses there. Also, Indian hospitals are in talks with Indonesian authorities to open hospitals there.

Subianto thanked the Indian government for the invitation. He had visited India as Defence minister in 2020. He recalled that India had invited then Indonesian President Sukarno for the first Republic Day parade in 1950. He also said that India was one of the co-founders of the Non-Aligned Movement, after the Bandung conference and is now championing South-South cooperation, as the “voice of the Global South”.

President Subianto is the fourth Indonesian leader invited by India to attend its Republic Day celebrations as chief guest: In 1950, when India celebrated its first Republic Day, it was President Sukarno. The choice of chief guest every year is dictated by a number of reasons — strategic and diplomatic, business interest and international geo-politics.

This year, a 352-member marching and band contingent from Indonesia will participate in the Republic Day parade. It’s the first time an Indonesian marching and band contingent is taking part in a national day parade abroad. The President thanked the Indian government for the opportunity. He also invited PM Modi to visit Indonesia.

Earlier in the day, he met President Droupadi Murmu and was accorded the ceremonial welcome at the Rashtrapati Bhawan. He is on a three-day visit to India beginning Thursday night, and had met External Affairs minister S Jaishankar on Friday.

He also went to the Bahrisons bookshop in Khan Market.

India-Indonesia bilateral ties were elevated to a Comprehensive Strategic Partnership when Prime Minister Modi paid an official visit to Indonesia in 2018. During that visit, the Shared Vision of India-Indonesia Maritime Cooperation in the Indo-Pacific was also adopted.

Modi also met Subianto on the sidelines of the G20 Summit in Rio de Janeiro in Brazil on November 19, 2024. This was the first meeting between the two leaders.

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.

Indonesia chaired the G20 Presidency in 2022, followed by India in 2023. Sources said that the two sides worked in tandem to talk to the Russians and the US-led Western bloc to arrive at a joint communique at the G20 leaders’ summits in Bali and New Delhi — reflecting their shared understanding.

Subianto is likely to maintain a good relationship with the newly elected US President Donald Trump. When Trump won, Subianto was one of the first world leaders to call and congratulate him. When Trump complimented his English, Subianto reportedly replied, “All my training is American, Sir.”

That said, Subianto is expected to continue with his non-aligned policy that avoids taking sides in the US-China rivalry.

Indonesia is one of India’s largest trading partners in the ASEAN region, with bilateral trade in 2023-24 reaching $29.40 billion. Indian investments in Indonesia amounts to $1.56 billion in infrastructure, power, textiles, steel, automotive, mining, banking and consumer goods sectors.

But, since trade is lopsided in Indonesia’s favour — Indonesia exports $24 billion and India exports about $6 billion — there was discussion about increasing Indonesian imports from India.