Maritime cooperation to UPI: India and Indonesia set to boost economic and trade ties

Jakarta, July 7 (IANS) From maritime and defence cooperation to building a robust digital infrastructure, India and Indonesia on Tuesday inked several pacts that would help achieve a substantial upward trajectory in their Comprehensive Strategic Partnership.

According to an official statement, recognising that India and Indonesia are maritime neighbours and strategic partners with robust defence cooperation, Prime Minister Narendra Modi and Indonesian President Prabowo Subianto reaffirmed their strong commitment to further enhance and broaden the defence and maritime partnership.

They welcomed the elevation of defence cooperation, including “through cooperation on BrahMos Missile System, and the Air-to-Air Missile Cooperation Agreement”.

The two leaders also welcomed the continued maritime cooperation, including in the field of maritime domain awareness (MDA), maritime connectivity, coastal surveillance, humanitarian assistance and disaster relief (HADR), pollution control and search and rescue (SAR) based on mutual interest and priorities of the two countries, that also contributes to delivering peace, security and prosperity in the region and greater stability in the wider Indo-Pacific region.

Both leaders also welcomed the renewal of the Memorandum of Understanding (MoU) on Maritime Safety and Security Cooperation and the conclusion of the Implementing Arrangement between BAKAMLA RI and Indian Coast Guard, according to the official statement.

The two nations agreed to expand mutually beneficial collaboration between the defence industries for joint production of equipment, technology transfer, technical assistance and capacity building, sourcing of defence equipment including cooperation in ship-building, establishment of MRO facilities for similar defence platforms, exploring establishment of defence R&D, and strengthening defence supply chain ecosystem.

Both leaders also welcomed progress in pharmaceutical collaboration between Armed Forces Medical Establishments of India and Indonesia on supply of military medicines.

Both leaders acknowledged the vast economic and developmental synergies between India’s vision of ‘Viksit Bharat 2047’ and ‘Indonesia Emas 2045’, and the role of broader and deeper economic integration between the two countries for unlocking greater economic opportunities.

Towards this, the leaders expressed a desire for a timely conclusion of the ASEAN India Trade in Goods Agreement (AITIGA) review for a balanced, mutually beneficial and facilitative trade environment, followed by a comprehensive, deeper bilateral trade engagement to enhance bilateral trade, said the official statement.

They emphasised the need to fully utilise and strengthen the existing bilateral economic mechanisms, including the convening in 2026 of the 2nd meeting of the Working Group on Trade and Investment (WGTI), the 4th Biennial Trade Ministers’ Forum (BTMF), and the 1st meeting of the Joint Economic and Financial Dialogue (EFD).

“They noted that these mechanisms should work towards achieving concrete and business-oriented outcomes in addressing outstanding tariff and non-tariff issues, improving market access, facilitating trade and investment, and advancing cooperation in finance, digital economy, industry and supply chains, while respecting each country’s domestic regulations and development priorities,” the statement said.

The two leaders underscored the importance of further strengthening collaboration in critical minerals and rare earths with a focus on building diversified and resilient supply chains essential for the growth of domestic manufacturing industries towards reducing vulnerabilities and strengthening economic security.

The leaders also welcomed the signing of the MoU in cooperation in the field of Minerals and Technology of Steel Supply Chain.

Both leaders welcomed the progress towards the operationalisation of guidelines on Local Currency Transaction (LCT) between the Reserve Bank of India and Bank Indonesia and noted that this would further promote trade and investment between India and Indonesia and deepen financial integration between the two economies.

They noted the importance of the Red and White Cooperative Network as a potential logistical distribution platform in Indonesia, to deliver, among others, pharmaceuticals and medical products from both countries, in accordance with respective domestic laws and regulations.

The two leaders reaffirmed their commitment to strengthening health sector cooperation and welcomed the signing of the Implementation Arrangement on Professional Health Workforce Development.

The leaders also agreed to deepen cooperation in food security and nutrition, while respecting each country’s domestic policies.

Both nations emphasised the importance of enhanced maritime and air connectivity between the countries and encouraged greater air connectivity and port-to-port connections. President Prabowo welcomed India’s interest in partnering on the integrated development of the Sabang Port.

Both leaders welcomed the launch of Indonesia Open Network (ION), based on Open Network for Digital Commerce (ONDC) architecture in India, to increase the participation of Indonesian MSMEs in the digital economy through digital networks.

The two leaders welcomed the progress towards the implementation of the Cross-Border QR Payment Linkage between India and Indonesia as agreed between the Reserve Bank of India and Bank Indonesia.

–IANS

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