India-Indonesia Bilateral Relations

Context: Prime Minister of India paid a State Visit to Indonesia, during which India and Indonesia adopted a Joint Statement to deepen their Comprehensive Strategic Partnership across defence, maritime security, trade, technology, connectivity and multilateral cooperation.

About India-Indonesia Bilateral Relations:

What is it?

• India and Indonesia share a Comprehensive Strategic Partnership (CSP), established in 2018, built upon centuries-old civilizational, cultural and maritime linkages.
• The relationship encompasses political dialogue, defence, maritime security, trade and investment, digital economy, energy, space, education, culture, connectivity and multilateral cooperation.

Key Outcomes of the India–Indonesia Summit (2026):

1. Strengthened Political & Strategic Partnership:

• Both countries agreed to institutionalise regular summit meetings and strengthen dialogue mechanisms such as the Joint Commission Meeting, Foreign Office Consultations and Parliamentary exchanges to ensure continuous strategic engagement.
• They also decided to deepen cooperation among think tanks, academic institutions and policy experts, promoting greater policy coordination and long-term strategic understanding.

2. Defence & Maritime Cooperation:

• India and Indonesia expanded defence ties through cooperation in the BrahMos Missile System, Air-to-Air Missiles, joint military exercises, defence technology co-production, hydrography, Maritime Domain Awareness (MDA) and capacity building.
• Both countries renewed the Maritime Safety and Security MoU, while Indonesia stationed an International Liaison Officer (ILO) at India’s IFC-IOR, Gurugram, enhancing information sharing and Indo-Pacific maritime security.

3. Counter-Terrorism & Cyber Security:

• The two countries reaffirmed a zero-tolerance approach towards terrorism and pledged closer cooperation against terror financing, violent extremism and online radicalisation in line with international standards.
• They also agreed to strengthen collaboration in cyber security, digital forensics, CERT cooperation and protection of critical information infrastructure to tackle emerging cyber threats.

4. Trade & Investment:

• Both sides committed to an early conclusion of the ASEAN–India Trade in Goods Agreement (AITIGA) Review) to improve market access, remove trade barriers and facilitate greater bilateral commerce.
• They established new economic mechanisms such as the Joint Economic & Financial Dialogue and promoted Local Currency Transactions (LCT) between RBI and Bank Indonesia to reduce dependence on third-country currencies.

5. Critical Minerals & Industrial Cooperation:

• India and Indonesia signed agreements to strengthen cooperation in critical minerals, rare earths and steel supply chains, supporting resilient manufacturing ecosystems.
• A Strategic Joint Venture between SAIL and PT Krakatau Steel will explore stainless steel production, technology transfer and industrial collaboration.

6. Health, Agriculture & Energy:

• The two countries signed agreements on health workforce development, medical product regulation, agriculture, food security and fertilizer cooperation to improve public health and agricultural resilience.
• They also agreed to expand cooperation in green hydrogen, LNG, solar energy, bioenergy and other clean energy technologies to strengthen long-term energy security.

7. Connectivity & Digital Economy:

• India agreed to partner in the development of Sabang Port, while both countries advanced Andaman–Aceh connectivity to improve maritime logistics and regional integration.
• They launched the Indonesia Open Network (ION) based on India’s ONDC architecture and made progress towards cross-border QR payments and telecommunications cooperation.

8. Science, Space & Emerging Technologies:

• India and Indonesia extended cooperation between ISRO and BRIN, including support for India’s Gaganyaan Mission through Indonesia’s Biak tracking facilities.
• Both countries also agreed to collaborate in nuclear energy, Artificial Intelligence, scientific research and innovation, strengthening partnerships in emerging technologies.

9. Culture, Education & Tourism:

• India will support the restoration of the UNESCO-listed Prambanan Temple Complex, while 2026–27 will be celebrated as the Tagore–Dewantara Year to commemorate shared cultural heritage.
• The two countries also agreed to expand tourism, visa facilitation, student exchanges, and welcomed the proposal to establish an IIM Bangalore campus in Indonesia.

10. Regional & Global Cooperation:

• Indonesia reaffirmed support for India’s BRICS Chairship (2026), while both countries backed UN Security Council reforms, greater representation for the Global South, and stronger ASEAN centrality.
• They reiterated commitment to a free, open and rules-based Indo-Pacific, respect for UNCLOS, freedom of navigation and a stable international order based on international law.

Strategic Opportunities for India:

• A stronger role at Sabang Port enhances India’s maritime presence near the Strait of Malacca, improving surveillance and strengthening security across the eastern Indian Ocean.
• BrahMos and Astra exports boost India’s defence manufacturing, expand access to ASEAN markets, and support the goal of increasing indigenous defence exports.
• Indonesia’s vast nickel reserves provide India with a reliable source of key battery minerals, supporting EV manufacturing and reducing import dependence.
• Expanding UPI and ONDC in Indonesia strengthens India’s fintech leadership while creating new opportunities for Indian technology and digital service companies.

Challenges and Roadblocks:

• Indonesia follows a balanced foreign policy and avoids openly confronting China, limiting the scope for deeper India-led strategic or military cooperation.
• India imports large quantities of palm oil and coal from Indonesia but continues to face market access barriers for its own exports.
• Infrastructure projects such as Sabang Port often face bureaucratic delays, regulatory hurdles, and environmental clearances, slowing implementation.
• Integrating Astra missiles with Indonesia’s diverse fighter fleet requires complex software integration while safeguarding sensitive defence technologies and intellectual property.

Conclusion:

By securing critical maritime checkpoints and exporting advanced defense hardware like the BrahMos missile, India establishes itself as a foundational security provider in the region. Ultimately, aligning India’s Viksit Bharat 2047 goals with the Indonesia Emas 2045 blueprint creates a stable, prosperous, and rules-based Indo-Pacific.