India Indonesia Relation Recent PM Visit Both Dr. Singh and Mr.

r. Yudhoyono are currently in the final lap of their second terms in power. India and Indonesias youthful demographic profile and expanding middle-class consumer base have led many an excitable investment banker to mark them as the economies to watch. India is the worlds largest democracy and Indonesia its third largest one. The two countries are also home to the largest (Indonesia) and third largest (India) number of Muslims in the world. Both are members of important multilateral forums like the G-20 and East Asia Summit. India and Indonesia are maritime neighbours. Given that Indonesia rules the major waterways between the Indian and Pacific Oceans- waters through which more than half of all international maritime trade passes the strategic significance of the relationship looms large. In fact Indias 2009 maritime strategy document listed the Sunda and Lombok straits, both under Indonesian control, as major choke points with complicating potential for Indian interests. Cooperation with Indonesia is a prerequisite to enable the Indian Navys operations in these waters. Joint coastal monitoring has been ongoing since 2010, but there is a need to step up this cooperation, including joint maritime exercises and training. The relationship with Indonesia has also assumed greater importance in the context of Chinas rise and expanding regional reach. Both India and Indonesia have the potential to act as balancing powers and can aid each other in their mutual goals of engaging China to benefit from its economic might, while ensuring that Beijings power is not untrammelled. In recent months Indonesia has been playing the mediators role within Asean to find a solution to Chinas maritime disputes with countries like Vietnam and the Philippines. Counter-terrorism is another field where Indonesia and India should deepen their cooperation. They have both suffered from major terrorist attacks by radical Islamist groups in the last decade. Economic relations between the two countries, another focus of Dr. Singhs visit, are not insubstantial. Two-way trade was worth around $21.3 billion in 2012. Forty-six per cent of Indias trade with Indonesia consists of palm oil imports. Indonesia is also Indias biggest supplier of coal, with some 76 per cent of Indian coal imports originating there. While there is some Indian investment in Indonesia, focused on automotives (Tata Motors has just launched three models of cars), textiles, steel and banking, talks on a comprehensive economic cooperation agreement (CECA) have yet to take off. Indonesia has a large Indian diaspora, many of whom play an influential role in the Indonesian economy. Yet, India has failed to exploit these connections. The lack of direct

flights connecting India and Indonesia is a dampener on business as well as people-topeople exchanges. In contrast, the Chinese diaspora is an active economic bridge between mainland China and Indonesia. Indonesias trade with China stands tellingly at $66 billion.

Joint Statement The Leaders agreed to adopt a five-pronged initiative for strengthening the Strategic Partnership 1. Strategic Engagement hold Annual Summits, including on the margins of multi lateral events Joint Working Groups on Education, Tourism, Coal , Oil and Gas, Agriculture, Counter Terrorism and Science & Technology regular exchange of delegations between the two Parliaments have helped in sharing views, experiences and best practices acknowledged the increasing intensity of collaboration between the Indian Space Research Organization (ISRO) and the National Institute of Aeronautics and Space of Indonesia (LAPAN) Cooperation regarding the Utilization of Nuclear Energy for Peaceful Purposes 2. Defence and Security Cooperation commencement of the Defence Ministers Dialogue and regular convening of the Joint Defence Cooperation Committee (JDCC) closer collaboration on capacity building and exchange of best practices in the field of maritime security and hold joint exercises enhance bi lateral cooperation in combating terrorism, terrorist financing, money laundering, arms smuggling, trafficking in human beings, and cyber crime 3. Comprehensive Economic Partnership expressed confidence in achieving the bilateral trade target of US $25 billion by 2015 launch of negotiations on an India-Indonesia Comprehensive Economic Cooperation Agreement (CECA) that would build upon the ASEAN-India FTA by bringing more depth and coverage cooperate in promotion of energy efficiency technologies, new and renewable energy technologies, with the shared aspiration to ensure energy security highlighted the importance of food security for the peoples of both countries and agreed to work together and with other partners towards concrete actions in food security mechanisms, research and development and in international bodies direct flight connectivity for trade and tourism 4. Cultural and People-to-People Links build upon the close historical and cultural links through promotion of art, literature, music and dance under the Cultural Exchange Programme

work on the institutionalization of university-to-university linkages to facilitate faculty exchange, teachers training, double-degree programmes 5. Cooperation in Responding to Common Challenges Realizing that the international community faced common challenges of increasing the momentum of global economic recovery, both sides agreed that as key members of the international community, India and Indonesia must work together effectively in fora like the UN, UNFCC, WMO, WTO and the G-20 to help achieve consensus on common and collective approaches to these important issues as two large countries straddling the Indian Ocean, have a high stake in ensuring the effectiveness of Indian Ocean Rim Association for Regional Cooperation (IORARC) in promoting regional cooperation in the fields of Mari time Safety & Security, Trade and Investment Facilitation MOU signed 1 Health cooperation. 2 Combating Corruption. 3 Combating Illicit Trafficking in Narcotics, Drugs, Psychotropic Substances and their Precursors. 4 Cooperation in the field of Disaster Management. 5 Public Administration 6 World Affair

Reference The Hindu, MEA Website Atul yadav Only Good will Contribution