Indonesia and India are the two largest Muslim populated countries in the world in that order. Both are members of G20 and have robust economies—India having a GDP of $1.8 trillion and Indonesia's GDP pegged at $700 billion, thus a combined GDP of $2.5 trillion.
Both countries are China-wary and are affected by the scourge of terrorism. Both were among the founding members of Non Aligned Movement wherein India’s first Prime Minister Jawahar Lal Nehru and Indonesia’s first President Sukarno made solid contributions to NAM. Nehru and Sukarno shared a vibrant personal rapport, reflected by the fact that Sukarno was the Chief Guest at India’s first Republic Day parade in 1950. But as NAM gradually became irrelevant in decades to follow, the two nations drifted apart. That is no longer the case.
The India-Indonesia engagement has started all over again and this time the ties have become so deep and wide-ranging that they are unlikely to become a casualty of the vagaries of fast-mutating international politics. The two countries started getting closer again with the dawn of the 21st century. In 2005, they signed a Strategic Partnership agreement and came up with a new action plan to boost their strategic ties two years later. Indonesian President Susilo Bambang Yudhoyono visited India from January 24-26 and took the bilateral relations between the two Asian neighbors from strength to strength. Yudhoyono held delegation-level talks with Prime Minister Manmohan Singh in New Delhi’s Hyderabad House on January 25 and the two leaders discussed ways of further invigorating their bilateral ties.
The importance India attaches to Indonesia can be gauged by the fact that the Indonesian President was the Chief Guest for this year’s Republic Day Parade, six decades after an Indonesian President was bestowed this honor. Inviting a foreign dignitary as the Chief Guest at India’s Republic Day parade is an honor that New Delhi has for years been reserving for select nations with which it intends to step up its strategic ties.
The Indonesian President unequivocally condemned terrorism “in all its forms and manifestations”, a far cry from Chinese Premier Wen Jiabao’s complete silence on the subject during his recent India visit. Recognizing the common threats to national security from transnational crimes, including international terrorism, the President of Indonesia and the Prime Minister of India resolved to significantly enhance bilateral cooperation in combating terrorism. The two leaders resolved to commit their countries in improving sharing of intelligence, the development of more effective counter terrorism policies, enhance liaison between law enforcement agencies, provide assistance in the areas of border and immigration control to stem the flow of terrorist related material, money and people and specific measures against transnational crimes, including international terrorism through the already existing mechanism between Indonesia and India. The two leaders announced that the next meeting of the Joint Working Group on Counter-Terrorism should be held in the first half of 2011.
A new item of interest was that the two leaders decided to have summit level meetings on the sidelines of multilateral events, which would inevitably lead to annual bilateral summits between the two powers. The two leaders also announced the establishment of an Eminent Persons’ Group (EPG) to prepare a blue print of India-Indonesia relations over the next 15 years. A Joint Statement issued at the end of Singh’s talks with Yudhoyono said the two leaders noted the development of active cooperation through numerous frameworks governing defense, science and technology, space cooperation, agricultural science, culture, tourism, and youth affairs and sports. The two leaders also acknowledged cooperation in education, media, air services, energy resources including oil, gas, coal, and renewable energy, prevention of smuggling, prevention of illegal trade in narcotics, disaster management, cooperation in the area of small and medium enterprises, meteorology, climatology and geophysics including climate change, health, marine and fisheries.
During this visit, India and Indonesia signed 18 business Memoranda of Understanding worth $15.1 billion in a wide range of areas as diverse as infrastructure, manufacturing and mining. These deals were announced by the Indonesian President in a business meeting of captains of industry here from both sides.
During Yudhoyono’s talks with Prime Minister Manmohan Singh, the two leaders expressed satisfaction at the growing trade and investment ties between the two countries and set a new target for raising the bilateral trade volume to $25 billion by 2015, an achievable target as India-Indonesia trade has tripled in the last five years and the current bilateral trade is pegged at $10 billion. Yudhoyono also highlighted the fact that India’s investment in Indonesia has grown from $11.6 million in 2007 to $44 million in 2010 and invited the Indian industry to invest in his country.
India and Indonesia have taken a timely step to deepen their synergies and intensify all-round cooperation in all important spheres, including defense cooperation. The India-Indonesia dialogue is important considering bouts of assertive diplomacy and flexing of military muscle which China has engaged in recent years. China must be watching the New Delhi-Jakarta bonhomie with deep interest and suspicion.
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China-Wary, India and Indonesia Get Closer
January 28, 2011
Indonesia and India are the two largest Muslim populated countries in the world in that order. Both are members of G20 and have robust economies—India having a GDP of $1.8 trillion and Indonesia's GDP pegged at $700 billion, thus a combined GDP of $2.5 trillion.
Both countries are China-wary and are affected by the scourge of terrorism. Both were among the founding members of Non Aligned Movement wherein India’s first Prime Minister Jawahar Lal Nehru and Indonesia’s first President Sukarno made solid contributions to NAM. Nehru and Sukarno shared a vibrant personal rapport, reflected by the fact that Sukarno was the Chief Guest at India’s first Republic Day parade in 1950. But as NAM gradually became irrelevant in decades to follow, the two nations drifted apart. That is no longer the case.
The India-Indonesia engagement has started all over again and this time the ties have become so deep and wide-ranging that they are unlikely to become a casualty of the vagaries of fast-mutating international politics. The two countries started getting closer again with the dawn of the 21st century. In 2005, they signed a Strategic Partnership agreement and came up with a new action plan to boost their strategic ties two years later. Indonesian President Susilo Bambang Yudhoyono visited India from January 24-26 and took the bilateral relations between the two Asian neighbors from strength to strength. Yudhoyono held delegation-level talks with Prime Minister Manmohan Singh in New Delhi’s Hyderabad House on January 25 and the two leaders discussed ways of further invigorating their bilateral ties.
The importance India attaches to Indonesia can be gauged by the fact that the Indonesian President was the Chief Guest for this year’s Republic Day Parade, six decades after an Indonesian President was bestowed this honor. Inviting a foreign dignitary as the Chief Guest at India’s Republic Day parade is an honor that New Delhi has for years been reserving for select nations with which it intends to step up its strategic ties.
The Indonesian President unequivocally condemned terrorism “in all its forms and manifestations”, a far cry from Chinese Premier Wen Jiabao’s complete silence on the subject during his recent India visit. Recognizing the common threats to national security from transnational crimes, including international terrorism, the President of Indonesia and the Prime Minister of India resolved to significantly enhance bilateral cooperation in combating terrorism. The two leaders resolved to commit their countries in improving sharing of intelligence, the development of more effective counter terrorism policies, enhance liaison between law enforcement agencies, provide assistance in the areas of border and immigration control to stem the flow of terrorist related material, money and people and specific measures against transnational crimes, including international terrorism through the already existing mechanism between Indonesia and India. The two leaders announced that the next meeting of the Joint Working Group on Counter-Terrorism should be held in the first half of 2011.
A new item of interest was that the two leaders decided to have summit level meetings on the sidelines of multilateral events, which would inevitably lead to annual bilateral summits between the two powers. The two leaders also announced the establishment of an Eminent Persons’ Group (EPG) to prepare a blue print of India-Indonesia relations over the next 15 years. A Joint Statement issued at the end of Singh’s talks with Yudhoyono said the two leaders noted the development of active cooperation through numerous frameworks governing defense, science and technology, space cooperation, agricultural science, culture, tourism, and youth affairs and sports. The two leaders also acknowledged cooperation in education, media, air services, energy resources including oil, gas, coal, and renewable energy, prevention of smuggling, prevention of illegal trade in narcotics, disaster management, cooperation in the area of small and medium enterprises, meteorology, climatology and geophysics including climate change, health, marine and fisheries.
During this visit, India and Indonesia signed 18 business Memoranda of Understanding worth $15.1 billion in a wide range of areas as diverse as infrastructure, manufacturing and mining. These deals were announced by the Indonesian President in a business meeting of captains of industry here from both sides.
During Yudhoyono’s talks with Prime Minister Manmohan Singh, the two leaders expressed satisfaction at the growing trade and investment ties between the two countries and set a new target for raising the bilateral trade volume to $25 billion by 2015, an achievable target as India-Indonesia trade has tripled in the last five years and the current bilateral trade is pegged at $10 billion. Yudhoyono also highlighted the fact that India’s investment in Indonesia has grown from $11.6 million in 2007 to $44 million in 2010 and invited the Indian industry to invest in his country.
India and Indonesia have taken a timely step to deepen their synergies and intensify all-round cooperation in all important spheres, including defense cooperation. The India-Indonesia dialogue is important considering bouts of assertive diplomacy and flexing of military muscle which China has engaged in recent years. China must be watching the New Delhi-Jakarta bonhomie with deep interest and suspicion.
