President Droupadi Murmu with guest of honour, Indonesian President Prabowo Subianto leave after attending India's 76th Republic Day parade in New Delhi on January 26, 2025 (Photo | AFP)
Opinion

India-Indonesia ties | Acting East with strategic vision

India’s bilateral relation with Indonesia has grown from maritime cooperation to include defence, healthcare and food security. The PM’s upcoming visit presents a chance to deepen the strategic partnership. Critical minerals, pharma and fintech could be among the new pillars of engagement

Gurjit Singh

Prime Minister Narendra Modi’s forthcoming visit to Indonesia will occur at a particularly favourable moment in bilateral relations. India and Indonesia, the two largest democracies in the Indo-Pacific, have spent the last decade transforming a historically cordial relationship into a comprehensive strategic partnership.

What distinguishes the relationship today is the extent to which commitments made during Modi’s 2018 visit to Jakarta and President Prabowo Subianto’s January 2025 visit to India have been translated into practical cooperation. The 8th India-Indonesia Joint Commission Meeting, held in New Delhi on June 7, demonstrated that both countries are now focused on implementation.  

The modern phase of the relationship began with Modi’s 2018 visit, when the ties were elevated to a comprehensive strategic partnership. The vision articulated then was fundamentally maritime. Cooperation on security, defence, connectivity, the blue economy and Indo-Pacific governance became the pillars of the relationship.

Eight years later, many of those objectives have matured. Naval exercises have become more regular, defence exchanges have expanded and coordination on maritime domain awareness has significantly improved. The strategic logic underpinning the partnership has strengthened as both countries seek to preserve a stable, rules-based Indo-Pacific without becoming part of rigid alliance structures.

The symbolism of President Subianto’s State visit last year as chief guest on Republic Day was important—it signalled India’s desire to prioritise Southeast Asia despite the distractions of great-power competition. The two sides emphasised defence-industrial cooperation, critical minerals, digital technologies, health, food security and supply-chain resilience. The leaders also highlighted the need to strengthen ASEAN’s centrality and maintain an inclusive Indo-Pacific. 

This June’s meeting showed tangible progress in implementing these priorities. In the review by foreign ministers S Jaishankar and Sugiono, particularly noteworthy was the emphasis on critical minerals, digital technologies, pharmaceuticals, fintech and shipping. These sectors are directly linked to the economic security agenda being pursued by both governments.  

Critical minerals represent perhaps the most promising new frontier. Indonesia possesses some of the world’s largest nickel reserves and is emerging as a major electric vehicle battery hub. India, meanwhile, is seeking reliable access to critical mineral supply chains to support its energy transition and manufacturing ambitions. The discussions indicate that both sides recognise the complementarities.  

While defence cooperation has not yet reached the depth of India’s partnerships with countries such as Singapore, Vietnam or the Phillipines, the trajectory is positive. Indonesia increasingly views India as a stabilising maritime partner, while India values Indonesia’s geographic position near critical sea lanes. Enhanced naval engagement, coordinated patrols, officer exchanges and defence-industrial cooperation could become defining features of the next phase. If Indonesia optimises its interest in obtaining Brahmos missiles, it would enhance the ties.

Economically, however, the partnership still underperforms relative to its potential. Bilateral trade falls short of what should be expected between two G20 economies with a combined population over 1.7 billion. Investment flows also remain modest. Hence, the June meeting focused on expanding cooperation in trade, investment and strategic industries. Fintech, digital payments, cybersecurity and artificial intelligence could emerge as major pillars of cooperation over the coming decade.

Another underappreciated strength of the relationship lies in its civilisational ties. Indonesia’s cultural landscape retains deep influences from Indian civilisation, reflected in language, art and religious traditions. Yet tourism, educational exchanges and cultural cooperation have not matched this historical affinity. Greater connectivity between universities, think tanks and businesses could help create a broader constituency.

The forthcoming Modi visit, therefore, presents an opportunity to move the relationship from steady growth to genuine strategic acceleration. Several deliverables could help achieve this objective.

First, the two countries should launch a dedicated critical minerals partnership. Second, maritime cooperation could be upgraded through enhanced information-sharing and expanded naval exercises in the eastern Indian Ocean. Third, a bilateral framework on digital public infrastructure and fintech cooperation would align with both countries’ economic priorities. Fourth, cooperation in pharmaceuticals and healthcare could strengthen regional health security. Finally, greater institutionalisation of leader-level and ministerial dialogues would ensure sustained implementation of agreed initiatives.

The broader geopolitical context also favours closer ties. Both India and Indonesia seek strategic autonomy, support a multipolar Asia and favour inclusive regional institutions. Their convergence on these issues creates a durable foundation that extends beyond individual governments.

The challenge for the forthcoming Modi visit is to deepen implementation. If concrete advances can be secured in critical minerals, maritime security, digital connectivity and defence, the visit could mark the beginning of a more ambitious phase in one of the Indo-Pacific’s most consequential relationships.

Gurjit Singh | Former Ambassador to Indonesia and the ASEAN

(Views are personal)

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