Delhi, Jakarta and the rediscovery of a partnership

Prime Minister Narendra Modi’s bilateral meeting with Indonesian President Prabowo Subianto offers an opportunity to inject fresh momentum into a relationship that has experienced periods of remarkable warmth and prolonged neglect. Bonds were forged in the shared anti-colonial struggle and both countries co-hosted the 1955 Bandung Conference that laid the foundations of the Non-Aligned Movement. They drifted apart, however, during the Cold War. India and Indonesia have steadily rediscovered each other since, as strategic partners. A rapidly rising China, and the risks of relying on US security under a mercurial president, provide the propulsive force for closer Delhi-Jakarta ties.

Defence, critical minerals, and maritime security have emerged as principal areas of cooperation. The agreement to supply BrahMos supersonic cruise missiles and Astra air-to-air missiles to Indonesia underscores India’s emergence as a credible defence exporter. India must make better use of Indonesia’s abundant reserves of nickel and rare earth elements. This will require greater domestic capacity, sustained political attention and deeper participation by the private sector. But the most significant outcome is the decision to jointly develop Sabang Port, located near the northwestern entrance to the Strait of Malacca. The Strait is one of the world’s busiest chokepoints, carrying around 23 million barrels of oil a day (around 21 million passed through the Strait of Hormuz daily before the war). No major economy is more dependent on it than China, with an estimated 80 per cent of its imported oil passing through it. New Delhi has done well to deepen its partnership with Jakarta in securing its integrated development. The challenge, however, lies in implementation. A joint task force on Sabang has been there since 2018, but bureaucratic delays and financing constraints have kept the project from taking off.

PM Modi’s meeting with President Prabowo follows his recent engagements with the leaders of South Korea and Japan, and will be followed by visits to Australia and New Zealand. Together, these engagements reflect a renewed vigour in India’s Act East Policy and a recognition that deeper cooperation between the Indo-Pacific’s middle powers can generate mutual economic and strategic gains while reducing the risks of excessive dependence on Washington or Beijing. India must match its external outreach with faster domestic reforms. Only a more competitive economy and a stronger defence industrial base will enable it to shape the emerging Asian order in accordance with its national interests.