India, Indonesia pledge to deepen defence, economic ties
India and Indonesia strengthen defence and economic ties, pledging cooperation in trade, security, and renewable energy during President Subianto's visit.
India and Indonesia on Sunday set the tone for deepening their defence and economic engagement through a raft of measures including New Delhi pledging to support the southeast Asian nation’s defence modernisation programmes through experience and expertise sharing, and the two sides taking steps to resolve outstanding tariff and non-tariff barriers to trade, said a joint statement issued on the state visit of President Prabowo Subianto, who was the chief guest at Sunday’s Republic Day celebrations.
The two countries also agreed to enhance cooperation in other fields including counter terrorism, health and pharmaceuticals, food security, infrastructure and connectivity, science and technology, space cooperation, education and skill development, climate change and disaster resilience, and Indo-Pacific initiatives.
“Recognising the importance of building domestic defence manufacturing capabilities, President Prabowo appreciated India’s advancements and expressed interest in strengthening cooperation in this sector. Both countries affirmed their commitment to deepen collaboration in the defence industry by utilising the joint defence cooperation committee (JDCC),” the statement said.
Indonesia is engaged in negotiations with India on acquiring the BrahMos missile system, and the two sides have reached a broad understanding on the pricing of the deal, expected to be worth around $450 million.
Prime Minister Narendra Modi and Subianto also called for convening the second meeting of the working group on trade and investment (WGTI), and the 4th biennial trade ministers’ forum (BMTF) to resolve trade barriers.
Indonesia is India’s second largest trading partner in the 10-member Asean (Association of Southeast Asian Nations) bloc. Bilateral trade surged from $4.3 billion in 2005-06 to $29.40 billion in 2023-24, and India is the second biggest buyer of coal and the largest buyer of crude palm oil from Indonesia. India’s exports include refined petroleum products, commercial vehicles, telecommunication equipment and agriculture commodities.
Both leaders agreed to the early conclusion of the ongoing review of the Asean -India Trade in Goods Agreement (AITIGA) this year for harnessing greater economic potential. To be sure, in the last ten years, India-Asean trade has almost doubled to $130 billion, and the bloc is one of the country’s largest trade and investment partners.
The two leaders reaffirmed the importance of maintaining and promoting peace, stability, freedom of navigation and overflight in the region, and other lawful uses of the seas, including unimpeded lawful maritime commerce, and underlined the need to promote peaceful resolutions of disputes in accordance with universally recognised principles of international law, including the 1982 UNCLOS (UN Convention on the Law of the Sea).
“They supported the full and effective implementation of the Declaration on the Conduct of the Parties in the South China Sea (DOC) in its entirety and look forward to the early conclusion of an effective and substantive Code of Conduct in the South China Sea (COC) that is in accordance with international law,” the statement said.
To be sure, China has longstanding territorial disputes in the resource-rich South China Sea with some members of the Asean bloc including Malaysia, the Philippines and Vietnam.
India has consistently called for a free, open and inclusive order in the Indo-Pacific, pivoting on respect for sovereignty and territorial integrity of all nations, while stressing on peaceful resolution of disputes through dialogue and under the framework of international laws.
Subianto hailed India’s interest in enhancing maritime security cooperation, including its engagement with regional mechanisms to ensure the safety and security of sea lanes of communication. This was his first visit to India as President and coincided with the 75th anniversary of India-Indonesia diplomatic relations. He was accompanied by a high-level delegation including several ministers, senior government officials and businessmen.
India and Indonesia strongly condemned terrorism in all its forms and manifestations and reaffirmed their commitment to enhancing cooperation in combating the threat through bilateral and multilateral initiatives.
“Both leaders underscored the importance of strengthening global efforts to combat terrorism, including eliminating terror financing and preventing the recruitment of terrorists, without any double standards. They emphasised the need for all countries to work collectively to deny safe havens and support networks to terrorist groups, in accordance with international obligations and commitments.”
The two leaders affirmed their commitment to accelerate collaboration in areas such as digital public infrastructure, digital capacity building and cyber security for inclusive growth and addressing global challenges. They expressed confidence that the MoU on cooperation in the fields of digital development signed during this visit will enable harnessing the power of emerging technologies.
The two leaders also expressed their commitment towards achieving renewable energy goals of their countries and lauded the existing efforts being made on energy transition. “Both sides have shown interest in joint exploration and mining related projects, particularly relating to critical minerals such as nickel, bauxite, silica and tin, with a focus on the downstream sectors.