INDIA - INDONESIA
Ancient and Medieval Relations
- Trade and cultural exchanges between India and Indonesia began as early as the first century CE. Indian traders, monks, and scholars traveled to the Indonesian archipelago, bringing with them Hinduism and Buddhism, which significantly influenced Indonesian culture.
- The Hindu-Buddhist kingdoms of Srivijaya, Majapahit, and Sailendra had strong Indian influences, evident in their temples, literature, and governance systems. The famous Borobudur and Prambanan temples in Indonesia are testaments to this connection.
- During the medieval period, Indian traders played a key role in Indonesian maritime trade, particularly in the exchange of spices, textiles, and gold. Even after the rise of Islam in Indonesia, Indian influence remained strong, especially through trade with Gujarat and other coastal regions of India.
Colonial Period and Nationalist Struggles
- Both India and Indonesia faced colonial rule—India under the British and Indonesia under the Dutch. The struggle for independence brought the two nations closer, as leaders like Jawaharlal Nehru and Sukarno shared a vision for a post-colonial, non-aligned Asia.
- India strongly supported Indonesia’s fight for independence from the Dutch, particularly between 1945-1949, when the Netherlands attempted to reclaim Indonesia after World War II.
- India even convened the Asian Relations Conference in 1947 to support Indonesia's cause and provided diplomatic and material assistance
Post-Independence and Cold War Era
- After gaining independence, India and Indonesia established strong diplomatic ties. Sukarno was a key figure at the 1955 Bandung Conference, which laid the foundation for the Non-Aligned Movement (NAM). India and Indonesia became close partners in promoting Asian-African solidarity and resisting Western and Soviet bloc pressures during the Cold War.
- However, by the 1960s, relations cooled due to changing political dynamics. The overthrow of Sukarno in 1965 and the rise of Suharto’s pro-Western regime created a distance between India and Indonesia.
- India’s close ties with the Soviet Union and Indonesia’s alignment with the United States further reduced cooperation between the two nations
Revival of Relations in the 1990s and Beyond
- The end of the Cold War in the early 1990s marked a new chapter in India-Indonesia relations. With India’s economic liberalization and the launch of the Look East Policy (now Act East Policy), both nations renewed their strategic and economic engagements.
- Trade and investment between the two countries grew significantly, especially in sectors such as energy, palm oil, coal, and automobiles. Defense ties also improved, with India and Indonesia conducting joint naval exercises and cooperating on maritime security in the Indian Ocean.
- A major milestone came in 2018, when Prime Minister Narendra Modi and Indonesian President Joko Widodo elevated the relationship to a Comprehensive Strategic Partnership.
- This included stronger collaboration in defense, counter-terrorism, space, and infrastructure. Both nations also worked together on ASEAN platforms and in regional groupings like the Indian Ocean Rim Association (IORA)
Contemporary Relations
- Today, India and Indonesia continue to strengthen their partnership in trade, defense, culture, and geopolitics.
- Indonesia is India's largest trading partner in ASEAN, and both countries are committed to maintaining maritime security in the Indo-Pacific region.
- With shared concerns over China’s growing influence in the South China Sea, India and Indonesia have been enhancing their naval cooperation.
- Cultural ties remain strong, with Indonesia hosting one of the largest Ramayana and Mahabharata performances, showing the enduring impact of Indian heritage. Tourism and people-to-people exchanges are also growing, with Bali being a popular destination for Indian travelers
- Maritime Security & Indo-Pacific Strategy – Indonesia is located at the crossroads of the Indian and Pacific Oceans, making it a crucial partner in ensuring freedom of navigation and maritime security. Both nations work together under the Indo-Pacific vision to maintain stability and counter threats like piracy and illegal fishing.
- Gateway to ASEAN – As the largest country and economy in ASEAN (Association of Southeast Asian Nations), Indonesia is India’s key partner in strengthening its Act East Policy and expanding ties with Southeast Asia.
- Countering China’s Influence – Given China’s aggressive actions in the South China Sea, closer India-Indonesia cooperation helps balance power in the region and protect the interests of smaller ASEAN nations
- Major Trading Partner – Indonesia is India’s largest trading partner in ASEAN, with bilateral trade exceeding $38 billion in 2022-23.
- Crucial Imports – India imports large quantities of palm oil, coal, and minerals from Indonesia, making it an essential supplier for Indian industries.
- Energy Security – Indonesia is a major exporter of coal and natural gas, helping meet India’s growing energy demands
Historical Background
- The roots of NAM can be traced to the mid-20th century when the world was deeply divided into two ideological camps—the capitalist and communist blocs.
- Many newly independent nations, particularly those in Africa and Asia, found themselves pressured to align with either the U.S. or the Soviet Union. India, under the leadership of Jawaharlal Nehru, was one of the main proponents of the idea that countries should remain neutral and not be drawn into the conflict between these superpowers.
- The Bandung Conference of 1955, which was held in Indonesia, brought together 29 countries from Asia and Africa to discuss anti-colonialism, economic cooperation, and world peace.
- This conference laid the foundation for what would later become the Non-Aligned Movement. Key figures such as Nehru, Gamal Abdel Nasser (Egypt), Kwame Nkrumah (Ghana), and Sukarno (Indonesia) played pivotal roles in the formation of the movement.
Goals and Principles of NAMNAM was grounded in the five principles of peaceful coexistence (Panchsheel), which were initially formulated by India and China in 1954 and became the core philosophy of the movement:
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India’s Look East Policy (LEP) and its successor, the Act East Policy (AEP), have been crucial strategies to strengthen India’s ties with the countries of Southeast Asia and the broader Indo-Pacific region. These policies were developed in response to both changing geopolitical dynamics and India’s aspirations to become an active and influential player in the Asian and global arenas. While both policies share similar objectives, they represent distinct phases in India’s foreign policy evolution.
Look East Policy (LEP)
- The Look East Policy was officially launched in 1991 by Prime Minister P.V. Narasimha Rao in conjunction with India’s economic liberalization and the pursuit of greater economic integration with the world.
- At the time, India’s focus was primarily on its traditional relationships with the West and the Soviet Union, but with the end of the Cold War and the rise of East Asia as an economic powerhouse, it became increasingly important for India to look toward its eastern neighbors for both economic opportunities and strategic engagement.
- The policy aimed to strengthen India’s ties with Southeast Asia, East Asia, and the Pacific through increased trade, investment, and diplomatic engagement. The Association of Southeast Asian Nations (ASEAN) was at the heart of this initiative, as it provided a multilateral framework for India to engage with the region. India’s membership in regional forums like ASEAN Regional Forum (ARF) and later East Asia Summit (EAS) were key milestones in the Look East Policy’s evolution.
- The LEP’s economic objectives were aimed at diversifying India’s trade relations beyond the West, particularly focusing on the dynamic economies of the East, such as Japan, South Korea, and the ASEAN countries. India also pursued greater connectivity and trade links, including infrastructure projects like the India-Myanmar-Thailand Trilateral Highway.
- On the strategic front, the Look East Policy was about India’s desire to enhance its security cooperation with regional powers, particularly in countering China’s growing influence in the region. India participated in several defense dialogues and naval exercises with countries like Japan and Singapore, expanding its influence in the Indo-Pacific
Act East Policy (AEP)
- The Act East Policy was introduced in 2014 under the leadership of Prime Minister Narendra Modi, as a more dynamic and assertive continuation of the Look East Policy. The shift from "Look" to "Act" signified a more proactive and action-oriented approach to India’s engagement with the region, responding to new geopolitical realities and India’s desire to enhance its role in the Indo-Pacific.
- While the Look East Policy focused on increasing economic, trade, and diplomatic engagements with East Asia and Southeast Asia, the Act East Policy pushed India to take a more active role in regional security, connectivity, and multilateral diplomacy. It also sought to enhance India’s influence in East Asia, including its relationships with countries like Japan, South Korea, and Australia, as well as its strategic partnership with the United States.
- A key element of the Act East Policy was India's commitment to enhancing connectivity through infrastructure and transport projects. For example, the Mekong-Ganga Cooperation, which seeks to improve links between India and Southeast Asia, became a priority under AEP. India also began to focus more on land and maritime connectivity, such as the India-Myanmar-Thailand Trilateral Highway and efforts to improve port infrastructure.
- The policy also emphasized strengthening defense cooperation, with India engaging in joint military exercises and naval drills with countries in the region. This expanded collaboration was a clear signal of India’s intention to play a more assertive role in regional security, particularly in the South China Sea, where rising Chinese assertiveness has become a major concern.
- India’s Act East Policy is not only about economics and defense but also about engaging with the cultural, people-to-people, and diplomatic dimensions of its ties with the region. This approach aims to create strong bilateral and multilateral partnerships that promote peace, prosperity, and stability in the Indo-Pacific.
Differences Between Look East and Act East PolicyWhile both the Look East Policy and the Act East Policy are rooted in the desire to enhance India’s relationships with East and Southeast Asia, the key difference lies in the degree of proactivity and the expanded scope of the latter.
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For Prelims: India and its neighbourhood
For Mains: General Studies-II: India and its neighbourhood- relations
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Previous Year Questions
1.How far are India’s internal security challenges linked with border management particularly in view of the long porous borders with most countries of South Asia and Myanmar? (UPSC CSE 2013)
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