India-Indonesia ties as a global model

Evolution of Ties

• Indonesia’s founding father, President Sukarno, graced India’s Republic Day celebrations in 1950.

• The two countries have built strong ties across economics, politics, and culture since their independence.

• This year was the fourth time an Indonesian President has been chief guest at the Republic Day celebrations.

Key Areas of Collaboration

• Trade, maritime security, health, and technology are key areas of collaboration.

• The two leaders have shared ambitions to increase collaboration in areas such as energy, food and agriculture, healthcare, manufacturing, and technology.

Trade and Security as Pillars

• There are immense opportunities to increase bilateral trade, which currently stands at just under $30 billion.

• There is potential to quadruple the volume of trade in the next 10 years.

• Both countries are forecast to grow by 6.5% and 5.1% this year, above the global growth average of 3.3%.

• There is untapped potential for both countries to benefit from intelligent investment that can position them as leaders in energy transition.

Security

• The two countries have made significant strides in strengthening defensive ties, culminating in the Comprehensive Strategic Partnership in 2018.

• They committed to strengthening collaboration in areas such as counterterrorism and cyber security to keep the two countries safe.

International Relations

• The bilateral relationship fits in the global context, with both countries navigating a constantly shifting geo-political environment.

• Indonesia was invited to join the BRICS group of emerging economies, joining India and China.

• The new U.S. administration led by President Donald Trump has threatened to introduce a new set of tariffs, which are impediments to free trade and carry risks for the global economy.