India and Indonesia to Join Hands in Defence and Port Development

Indonesia is exploring defence cooperation and industrial collaboration with India, particularly BrahMos Aerospace set to finalize a major defence deal with the country, Dr Yose Rizal Damuri, CSIS executive director, said in an interview with Sputnik India, highlighting the potential for bilateral collaboration in the military equipment production.

As Indonesia aims to develop its defence industry, Manjeet Kripalani, the executive director at Gateway House Indian Council on Global Relations, pointed to the potential to boost exports.

On September 23-24, Gateway House and Indonesia's Centre for Strategic and International Studies (CSIS) co-hosted the first-ever India-Indonesia Track 1.5 Dialogue, supported by the Indian and Indonesian Ministries of External Affairs and Foreign Affairs, respectively.

In the nuclear energy sector, both Indonesia and India are exploring building small nuclear reactors, with India's reactors being more affordable than those from Western or other sources, she advised.

Indian start-ups specializing in “submarine technology can help Indonesia, which lacks expertise in this field, particularly given the strategic importance of the Indonesian Straits,” Kripalani noted.

Both experts noted that India and Indonesia are threatened by the influence of the US and others on data and disinformation.

Underwater cables lack landing ports in India and Indonesia, and local companies are not represented in the related consortia, necessitating a unified effort to improve data security and safeguard against transmission vulnerabilities, Kripalani added.

Both countries can establish frameworks and principles that align with their interests in addressing cyber issues, representing a regional and global challenge, while also enhancing their capacities to tackle them effectively, Damuri asserted.

The expert indicated that political tensions in the Red Sea are currently affecting supply chains and increasing freight costs, with potential disruptions if Middle Eastern conflicts remain unresolved.

In this context, India and Indonesia could collaborate on potential solutions, such as proposing alternative logistics routes and ideas, although this remains challenging given the uncontrollable nature of the regional situation, Damuri elaborated.

Experts also highlight illegal, unreported, and unregulated (IUU) fishing as a top transnational security threat for Indonesia, costing the country an estimated $8 billion annually in lost revenues.

Fostering collaborative activities and partnerships between Indonesia and India in producing the necessary equipment to combat illegal fishing is crucial, Damuri emphasised. He suggested to strengthen Association of South East Asian Nations' (ASEAN) Blue Economy Framework, which can help to promote more sustainable fisheries and environmental preservation.

In India, investors recognize significant opportunities due to Indonesia's high-quality fish and exports, which require investment in cold chain and supply chain infrastructure, Kripalani noted.

Sabang Port, located in Indonesia's Aceh, is approximately 90 nautical miles from the Andaman and Nicobar Islands and is crucial to accessing the Malacca Straits, a key maritime chokepoint between Indonesia and Malaysia. However, it is currently underdeveloped and unable to meet modern logistical demands, necessitating significant upgrades, with discussions in progress to enhance its capacity, Damuri observed.

If successful, these enhancements could transform Sabang into a vital gateway for better connectivity between all Indian Ocean and Southeast Asian countries, he pointed out.

Indonesia may be invited to join The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which would transform bilateral relations and enhance its strategic positioning in the Indo-Pacific region, Kripalani concluded.

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