“As India and Indonesia march toward our common vision of Developed India 2047 and Golden Indonesia 2045, we do so as comprehensive strategic partners. By strengthening our bilateral ties and leading the Global South through economic performance and social inclusion, we will brave the current geopolitical storm with greater resolve and fortitude.”
Much like Indonesia, India has exhibited unwavering adherence to its reform agenda. Over the past year, the Modi government has rationalized taxation, consolidated 29 disparate laws in four streamlined labor codes and adopted an enlightened approach to trade.
Exactly one year ago, President Prabowo Subianto was the chief guest at India’s Republic Day Parade at the invitation of Prime Minister Narendra Modi. A 352 Strong Indonesian marching and hand contingent marched down the majestic Kartavya Path – Delhi’s most magnificent promenade.
This marked the first time an Indonesian contingent participated in a national day parade abroad. The occasion was deeply symbolic and poignant, commemorating the culmination of 75 years of diplomatic relations and echoing the moment 75 years ago when President Sukarno served as the chief guest at India’s very first Republic Day.
In January 2025, Indonesia further deepened these tires by joining BRICS. As India Holds the BRICS chair in 2026, it looks forward to warmly receiving President Prabowo for the BRICS Summit later this year, focused on theme: “Building for Resilience, Innovation, Cooperation and Sustainability.”
As a year has passed since that momentous visit, it is time to take stock of our ties and outline the roadmap our leaders have charted. The decisions and actions taken by India and Indonesia, the world’s largest and fourth-largest countries, carry significant weight for the international community, particularly the Global South. In an era of acute geopolitical contestation and a shifting international order, our partnership is vital.
As non-bloc, nonaligned nations with a firm belief in multipolarity, the India-Indonesia partnership is more than a bilateral benefit; it is a balancing force for global good. By doing more together, we reduce dependencies on outside powers, thereby preserving out respective sovereignty and strategic autonomics.
Despite challenges from adverse global economic conditions, including the weaponization of tariffs and investment wariness, both nations have prioritized domestic reform and perseverance.
Both countries have launched initiatives to increase the share of manufacturing in their respective gross domestic products (GDPs).
In Indonesia, the establishment of Danantara, the new sovereign wealth investment’ agency, stands as remarkable and courageous reform with far reaching potential. Another bold initiative, the free Nutritious Meal program, is already proving to be transformational and generational in its impact. Furthermore, the Merah-Putih Co-operatives, once fully operational will serve as hubs for rural economic growth.
Since President Prabowo assumed office just over a year ago, Indonesia has made immense strides in food security, making perennial rice imports a thing of the past. Indonesia has also finalized several free trade agreements (FTAs), signaling a commitment to dismantling artificial trade barriers. India is delighted to partner with Indonesia across several of the government’s Asta Cita (eight goals) initiatives, particularly in food security and digitalization.
Parallel to Indonesia’s transformation, the Indian growth story is gaining significant steam. While it took India 60 years post-independence to reach a GDP of US$1 trillion, the pace has accelerated dramatically. The $2 trillion mark was achieved in 2014, $3 trillion was achieved in 2021, $4 trillion was reached in 2025 and $5 trillion is projected within the next two years.
Recently, India surpassed Japan to become the fourth-largest economy in the world; by 2028. It is projected to surpass Germany to become the third largest.
This internal transformation is fueled by structural reforms, infrastructural spending, digital expansion, and surge in startups and R & D. The recent promulgation of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act has also opened new pathways for nuclear energy through small modular reactors (SMRs) and private sector participation.
Much like Indonesia, India has exhibited unwavering adherence to its reform agenda. Over the past year, the Modi government has rationalized taxation, consolidated 29 disparate laws in four streamlined labor codes and adopted an enlightened approach to trade.
By finalizing FTAs with the United Kingdom and New Zealand and dismantling protectionist barriers like certain Quality Control Orders (QCOs), India has created a landscape from which Indonesian exports directly benefit.
As of now, India is nearing an FTA with the European Union, shortly after Indonesia concluded the Comprehensive Economic Partnership Agreement with eurozone. A key remaining task for both nations is finalizing the revision of the ASEAN- India Trade in Goods Agreement (AITIGA) and initiating bilateral trade agreement discussions. Amid global tariff narratives, it is often overlooked that India is Indonesia’s third or fourth largest export destination, while Indonesia remains India’s eighth largest trading partner.
Following the Presidential visit, forward-looking exchanges have taken place across eight primary pillars; digital, health, financial integration, energy, food sufficiency; defense, education and culture. In the digital and AI space, we expect strong Indonesian participation in the AI Impact Summit, with Indonesia cochairing the Working Group on Economic Growth and Social Good.
Together, we can shape a global AI discourse centered on People, Planet and Progress”. In 2026, we anticipate greater integration through the UPIQRIS tie-up, collaborations between capital markets and local currency settlements between our central banks.
In the healthcare sector, India’s Apollo Hospitals has teamed up with Mayapada Hospitals to provide, international standard care within Indonesia, helping the nation conserve valuable foreign exchange. Several Indian pharmaceutical companies will commence local production in 2026, and India remains committed to establishing a world-class liver transplant facility in Indonesia.
Our cooperation extends to the grassroots as well; Indian entrepreneurs are supporting the rollout of the nutritious meal program and the Merah Putih cooperatives, sharing branding insights from the successful Amul movement.
From the Indian Institute of Management (IIM) Bangalore’s proposed tie-up with the Singhasari Special Economic Zone to the Archaeological Survey of India’s upcoming restoration of the Prambanan Temple, our partnership spans the modern and ancient.
As India and Indonesia march toward our common vision of Developed India 2047 and Golden Indonesia 2045, we do so as comprehensive strategic partners. By strengthening our bilateral ties and leading the Global South through economic performance and social inclusion, we will brave the current geopolitical storm with greater resolve and fortitude.
(Sandeep Chakravorty is India’s Ambassador to Indonesia)
