Indonesia’s Charge d’Affaires, Yudho Sasangko, discussed the trajectory of India-Indonesia relations amid Prime Minister Narendra Modi’s upcoming visit to Indonesia. This trip is perceived in Jakarta as a pivotal moment for revitalising ongoing initiatives in defence, trade, connectivity, and cultural exchanges. The backdrop for this visit is the 2018 Comprehensive Strategic Partnership, which, although ambitious, has experienced inconsistent progress across various sectors.
Despite steady political engagement, the implementation of agreements has not kept pace, particularly in vital areas such as supply chains, infrastructure connectivity, and defence industrial cooperation. Sasangko expressed optimism that this visit could set a new course for future collaborations that enhance economic integration and strengthen the maritime and strategic framework between the two nations.
Defence Industrial Cooperation and Economic Diversification
The conversation highlighted the significance of defence industrial cooperation in Indonesia’s long-term strategic vision. Sasangko noted that as Indonesia modernises its armed forces, it seeks partnerships that extend beyond mere transactions. Emphasis is placed on collaborations involving technology transfer, co-production, and joint capability development, positioning India as a suitable partner due to its expanding defence-industrial base.
In terms of trade, bilateral exchanges currently stand at approximately $25 billion, predominantly centred on coal, palm oil, and petroleum. Sasangko hinted at a more diversified trade portfolio within five years, potentially encompassing critical minerals, downstream metal products, and advancements in pharmaceuticals, medical devices, and renewable energy. Achieving these diversified goals would necessitate improved regulatory coordination and ongoing discussions regarding the AITIGA Review.
Regarding the Andaman-Aceh connectivity corridor, which has faced prolonged delays, renewed enthusiasm was expressed about moving the project forward. Plans are underway for both countries to hold the third Joint Task Force meeting on connectivity later this year. The forthcoming engagement aims to establish a concrete action plan and explore the integrated development of Sabang Port, taking into consideration the extensive time required for aligning project scope and financing needs.
