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Indonesia: The Maritime Neighbor

India and Indonesia are "Maritime Neighbors" (shared sea border at Andaman) and the "Two Largest Democracies" of the Indo-Pacific.

1. Comprehensive Strategic Partnership


Comprehensive Strategic Partnership

Comprehensive Strategic Partnership
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  • Bilateral Summits: Indonesian President Prabowo Subianto made a State visit to India in January 2025, strengthening ties in defense, digital economy, and maritime security. In May 2026, EAM Jaishankar met Indonesian Foreign Minister Sugiono in New Delhi to review implementation.
  • Indo-Pacific Convergence: Aligns India's Indo-Pacific Oceans Initiative (IPOI) with the ASEAN Outlook on the Indo-Pacific (AOIP).
  • Sabang Port Gateway: India's ongoing strategic development of Sabang Port (Aceh) at the entrance of the Malacca Strait, establishing maritime connectivity with India's Andaman and Nicobar Islands.

2. Economic, Tech & Health Cooperations


Economic, Tech & Health Cooperations

Economic, Tech & Health Cooperations
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  • Agri & Energy Trade: Centred on Palm Oil, Coal, and Indian Bovine meat.
  • Local Currency Settlement (LCS): Establishing a framework to settle bilateral trade in local currencies (INR and IDR) to reduce dollar dependence.
  • Digital & AI Partnerships: Joint initiatives launched in 2025–2026 focusing on Digital Public Infrastructure (DPI), AI democratization, and semiconductor supply chain design.
  • Healthcare & Medicine: Signed multiple MoUs in 2025 for pharmaceutical exchanges and traditional medicine (Ayurveda).

3. Defense & Security


Defense & Security

Defense & Security
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  • BrahMos Supersonic Missiles: Officially finalized an agreement in early 2026 for Indonesia to procure Indian-made shore-based BrahMos supersonic cruise missiles for coastal defense.
  • Joint Drills & Security: Engaging in Samudra Shakti (naval bilateral) and Garuda Shakti (special forces) exercises, alongside coordinated patrols (CORPAT) near the Andaman Sea.
  • Defense Dialogues: Annual meetings under the Joint Defence Cooperation Committee (JDCC) to advance defense hardware co-production.
  • Malacca Choke-point: Sabang Port as India’s "Eye" on the world's most congested sea lane.
  • Bovine and Palm: The core of the agri-trade (Indian buffalo meat vs Indo Palm Oil).
  • Civilizational Maritime Bond: Reconnecting via the ancient "Bali Yatra" heritage.

Conclusion


Conclusion

Conclusion
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  • Indonesia is India’s "Indo-Pacific Sibling." Success lies in moving from "Passive proximity" to "Active Sabang-led Security" at the Malacca gate.