New Delhi: India and Indonesia are set to sign key pacts on defence, trade, energy and security cooperation as Indonesian President Prabowo Subianto arrives in India as chief guest at India’s 76th Republic Day celebrations.
Subianto will visit India on 25-26 January and hold a bilateral meeting with Prime Minister Narendra Modi.
Reports say that both countries could finalise an agreement for the sale of BrahMos supersonic missiles, but sources indicated to ThePrint that no such deal will happen. They said while talks are on, the deal is yet to be worked out.
On the defence front, both sides could sign an agreement for the maintenance of Sukhoi fighter jets and the training of Indonesian pilots.
Since signing the Defense Agreement in 2018, India and Indonesia have committed to enhancing their cooperation across various areas, including more frequent strategic consultations, joint training programmes, and military exercises.
Additionally, the two countries’ navies have been conducting joint patrols in the Indian Ocean since 2002. The India-Indonesia Coordinated Patrol (CORPAT) has become an essential effort to safeguard the Indo-Pacific’s maritime security.
Indonesia is also currently India’s largest trading partner within the Association of Southeast Asian Nations (ASEAN)—India ranks as the second-largest importer of Indonesian coal and crude palm oil, two of the country’s most significant natural resource exports with bilateral trade in 2023-24 reaching a robust US$ 29.40 billion.
Trade with Indonesia reached $29.4 billion in FY 2023-24, with both countries aiming for $50 billion by 2025. However, this target still pales in comparison to the $139 billion in trade between China and Indonesia in 2023.
Indian investment in Indonesia is spread across sectors like infrastructure, power, textiles, automotive, mining, and banking. With both countries working towards enhancing trade connectivity, this visit is expected to set the stage for even stronger economic ties.
Increasing bilateral engagements
President Subiato is the fourth Indonesian President to participate in the Republic Day celebrations, following in the footsteps of Indonesia’s first President H.E. Sukarno, who was the chief guest in 1950.
Further, this year’s Republic Day Parade will feature a 352-member marching and band contingent from Indonesia, making it the first time that Indonesia will send such a large contingent to a national day parade abroad.
Prime Minister Narendra Modi and President Prabowo Subianto had their first meeting in November 2024 during the G20 Summit in Rio de Janeiro, Brazil. The 3rd India-Indonesia CEO Forum is set to be held on the sidelines of this visit as well.
Apart from economy and defence, the two countries have shared active space cooperation since 1997. Indian space agency ISRO has established telemetry, tracking, and command (TTC) ground stations in Biak, Papua, which support Indian satellite and launch vehicle missions.
Moreover, India’s Apollo Hospitals has partnered with Indonesia’s Mayapada Hospital Group to build a green hospital in the new Indonesian capital of Ibu Kota Nusantara (IKN). India has significantly increased its exports of pharmaceuticals and medical devices to Indonesia, growing from $167 million in 2020-21 to $230 million in 2023-24.
Indonesia is also one of the largest recipients of Indian scholarships through the Indian Technical and Economic Cooperation (ITEC) and the Colombo Plan, and both countries continue to deepen academic exchanges.
Direct flight connectivity between India and Indonesia was launched in August 2023, with key routes connecting Mumbai-Jakarta, Delhi-Bali, and Bangalore-Bali.
(Edited by Tikli Basu)
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