Prime Minister Narendra Modi on Wednesday addressed the Indonesian Parliament, unveiling a comprehensive vision to elevate the bilateral relationship into a deeper strategic partnership by 2026. In his address, Modi emphasized the historical and cultural ties between the two nations, which he described as "ancient and enduring." He called for enhanced cooperation in defense, trade, and technology, aiming to double bilateral trade to $50 billion by 2026.
Key Announcements and Areas of Cooperation
Modi proposed a new framework for defense collaboration, including joint military exercises and intelligence sharing to counter terrorism and maritime security threats in the Indo-Pacific region. He also announced the establishment of a Joint Task Force on Cyber Security and a partnership in renewable energy, with India committing to support Indonesia's solar energy goals.
Trade and Economic Ties
The Prime Minister highlighted the potential for increased trade, noting that bilateral trade currently stands at $26 billion. He proposed a Comprehensive Economic Cooperation Agreement (CECA) to reduce tariffs and boost investment flows. Modi also invited Indonesian businesses to invest in India's infrastructure and digital economy, citing the success of India's Unified Payments Interface (UPI) as a model for digital cooperation.
"Our partnership is not just for the benefit of our two nations but for the stability and prosperity of the entire Indo-Pacific region," Modi said, according to a statement from the Indian Ministry of External Affairs.
Cultural and People-to-People Ties
Modi also announced the launch of a joint cultural festival in 2024 and the establishment of a new Indian cultural center in Jakarta. He underscored the importance of educational exchanges, with a target of training 1,000 Indonesian students in Indian universities over the next five years. The Prime Minister also paid tribute to the shared heritage of the Ramayana and the influence of Indian traditions in Indonesian culture.
The address was met with a standing ovation from Indonesian lawmakers, reflecting the strong goodwill between the two countries. Indonesian President Joko Widodo later expressed his appreciation for Modi's vision, stating that it aligns with Indonesia's own strategic priorities.
Strategic Implications
Analysts view Modi's address as a significant step in India's Act East policy, aiming to counterbalance China's growing influence in Southeast Asia. The proposed partnership is expected to strengthen ASEAN-India relations and promote a rules-based order in the region. The two nations also agreed to expedite the implementation of the India-Indonesia Comprehensive Strategic Partnership, which was upgraded in 2018.
Modi's visit to Indonesia, his first since 2018, underscores the importance New Delhi places on its ties with Jakarta. The Prime Minister is scheduled to meet with Indonesian business leaders and attend a cultural event before departing for the G20 summit in Bali.
