📱

Get Our Mobile App

Take your business learning on the go!

Download on the App StoreGet it on Google Play

20 landmark India-Indonesia agreements | Ankit Agrawal Study IQ

StudyIQ IAS13:29

Transcription

Hello friends. Friends, as all of you know, India's Prime Minister Narendra Modi Ji has gone on a visit to Indonesia, and this becomes very important. Especially if you look at the present geopolitics right now, the way issues are coming up in the supply chain. There is a crisis regarding energy, so Indonesia can play a very big role. You can see here, a news about 20 landmark deals signed between India and Indonesia has come. I will tell you one by one: what is this? How will India benefit from this? What is Indonesia getting? And how is China being countered in this case? We will know all of that. Let us begin.

But before that, let me tell all of you, those of you who are preparing for UPSC, connect with Study IQ because until 10th July, you will get a 50% flat discount on all our UPSC courses. And there are courses in which we provide complete preparation from Prelims to Interview, but it comes with many features like mentorship, test series, and revision. Whatever you want to choose, you can take it. And if there is any issue or problem, this phone number is given; call on this. Use the code 'Ankit Live' for maximum discount. Let us begin.

First of all, let us see what has happened. As I was telling you, Narendra Modi Ji has gone on a visit to Indonesia. And it marks one of the biggest diplomatic achievements. Because whether you talk about India's Act East Policy or the 'Mutual Holistic Advancement for Security and Growth' in the ocean, under all these things we have launched, you can call this the biggest diplomatic achievement. Because within a single day, both countries signed 20 agreements. They signed them. And which things are these related to? For example, it includes defense, critical minerals, AI, digital payments, maritime security, ports, agriculture – you will see it in every direction. This means that due to these agreements, the bilateral relationship between the two countries is shifting from traditional diplomacy towards a comprehensive strategic partnership in the Indo-Pacific.

Now, the first question that comes here is: why is Indonesia important for India? Look, Indonesia is India's largest strategic partner. If you talk about Southeast Asia, when we see the ASEAN countries, among those 10 ASEAN countries, it is India's largest strategic partner, and due to its geography and regional influence, it holds a lot of significance. First of all, if I talk about its geography, it is spread over 17,000 islands because when most people say "Indonesia," they think of either Sumatra or Java, or Borneo, which has been renamed Kalimantan. So, most people only see these three islands. But if you look, there are many very small islands. In fact, many people from India go to Bali for tourism. So you will find Bali island right next to Java. So it is spread over 17,000 islands. Imagine how many states it would have, and how much it influences the Indian and Pacific Oceans. So if you look at the major islands: Sumatra, Java, Borneo which I told you is Kalimantan. Then besides that, there are many others like Papua, spread across many places. And it stretches for nearly 5000 kilometers, making it one of the world's largest maritime states.

Alright, if we talk about its choke points, because nowadays there is a lot of discussion about them ever since the Strait of Hormuz was blocked. Similarly, if you look here, the most important choke point here is the Strait of Malacca. That is one. Then secondly, there is the Sunda Strait here. Please note, this will be very important from your exam perspective. You will have to remember these between each island: East to West, West to East. So this is the Sumatra Strait. Then this one here is your Sunda Strait. Where does this come? It is between the Sumatra Island and the Java Island. Okay? Then third is the Lombok Strait. The Lombok Strait is basically here where Bali is, okay? Next to Java is this Bali Island, and here is your Lombok Island. And the strait between them is called the Lombok Strait. Then there is another one, which is the Makassar Strait. If you look at the Makassar Strait, here is your island, and this is your Borneo or Kalimantan. Okay? Between them, this passage is your Makassar Strait. So, let me tell you, nearly one-third of global oil shipping passes through there. The Strait of Malacca we talk about, and a lot of oil and LNG all pass through here. And for India too, whatever exports we have to East Asia, energy security, maritime trade, everything depends on these straits. That is why Indonesia is so important.

Furthermore, it can be a gateway to ASEAN because Indonesia is the largest economy among ASEAN countries. It is the most populous country. It is a member of the G20. It is the world's largest Muslim-majority nation. So if we improve relations with Indonesia, then India's overall engagement with all ASEAN countries will also be quite strong. In fact, if you look at India-Indonesia relations, it is also very significant from a historical perspective. Because even in the ancient period, there was a link between the two countries. For example, Indian traders used to take Hinduism, Buddhism, Sanskrit, and Indian culture all to Indonesia. Even today, you will find evidence of this on different islands of Indonesia. For instance, in Bali, the Hindu tradition, Sanskrit-derived names. In fact, there was a time when Indonesia issued a note that had an image of Lord Ganesha on it. So that is how significant it is. Although that note was discontinued from 2008. They keep making changes from a security perspective. And besides that, the Ramayana and Mahabharata are a part of Indonesian culture. Even though you see it is a Muslim-majority country, you will still find all of this. You will see many temples there.

Alright, why were these very agreements signed now? What is their significance? I will tell you about the agreements. But one reason is China's growing presence. China is increasing its influence very rapidly. There is the BRI, Belt and Road, naval deployments, the kind of activities it keeps doing in the South China Sea. No country is happy there. It is making investments through these means. So if India and Indonesia come together, the partnership will gain strength. Here, we can implement a free, open, rule-based Indo-Pacific. Then supply chain security. The recent global disruption shows that we have to strengthen the supply chain in everything: critical minerals, semiconductors, batteries. And this agreement reflects that. And in defense, India wants self-reliance, wants to export through 'Make in India' defense. If Indonesia imports from us, it will get a push in a way. Now I will tell you about the agreements one by one. We will look at only some important ones. For instance, we will look at the 13-14 agreements.

So, first here is the BrahMos Missile Agreement. You all must have heard about this. It has been discussed a lot since yesterday. First, note that the Philippines ordered it from us; the Philippines took three batteries from us. What is happening here is that Indonesia is initially taking two BrahMos missile batteries from us. Please note, in a battery, there are four launchers, and I think there are 12 ready-to-use BrahMos missiles you will see there. And there are many other pieces of equipment as well along with it. So that is what constitutes a battery. So it is taking a total of two batteries. A deal worth 200 million has been made with Indonesia. As you all know, BrahMos was built jointly by Russia and India. It has quite special features. And you can call it one of the unique missiles in the world, with a speed of 2.8 to 3 times supersonic. It has precision strike capability. You can launch it from land, sea, or air, wherever you want. And it is important because look at Indonesia: they need to enhance their coastal defense, improve their anti-ship capability, and further strengthen maritime deterrence. And what does India need? Our export here, our indigenous manufacturing capability, is also shown by this thing. So there are many things. Both countries will benefit. And look, many people might be thinking, "Oh, they keep going on about BrahMos, BrahMos. Nothing else gets exported." So this is a big example.

Astra Missile. There is Astra. It is a Beyond Visual Range Air-to-Air Missile program. So the thing is, we are going to export the Astra missile for the first time. Indonesia will be the first country to take the Astra missile from India. And note this: it is not launched from the ground; it is fitted into a fighter jet. You can launch it from a fighter jet. And there is the Sukhoi. Indonesia has the Sukhoi. It will be fitted into that and used. And it is Beyond Visual Range. Meaning its range is 80 to 110 kilometers and it can be launched from an altitude of 20 kilometers. And look at its speed: you will see a speed 4.5 times that of sound. So this agreement shows that here, the Astra missile shows that this is a broader defense agreement. It is not just that we are only talking about BrahMos and such.

Then besides this, the third is Maritime Security Cooperation. Both countries will deepen their cooperation. For example, in maritime domain awareness, search and rescue, anti-piracy – in many things related to water, in disaster relief. And why is this so? Because one, the Indo [Andaman] Nicobar Islands and Indonesia are quite close. The Sumatra island you are seeing here, and their province here – what do you call it? I don't know the pronunciation. That will be found quite close to the Andaman Nicobar Islands. So if both countries do maritime cooperation with each other, this entire region will benefit. And overall, the Malacca Strait is monitored by everyone here. So if India and Indonesia work together, India will gain even more strength.

Then the fourth important development is regarding the Sabang Port. Look, in the province I told you about, right at the tip you will find Sabang Port here. And Sabang Port is important again because it is very close to the Andaman Nicobar Islands. So India and Indonesia will jointly develop it further, and it can be useful as a logistics hub, refueling station, disaster relief base – in everything. And it complements India's Andaman Nicobar project, the Great Nicobar Project.

Then besides this, Critical Minerals have become important in everything nowadays: nickel, cobalt, lithium, graphite – in everything. And we use them in electric vehicle batteries, semiconductors, these things. Why is Indonesia important? Please note, it has the world's largest nickel reserves. It has substantial cobalt, bauxite, tin, and copper. So if we have a partnership, we can get all those resources which are extracted from there. So India can again benefit from this.

Then besides this, there was Rare Earth Cooperation. Meaning here you see that Rare Earths are used in everything nowadays again, and as you all know, China dominates rare earths, processing, everything. So if we work with Indonesia on this, it can greatly help in securing the supply chain.

Alright, Artificial Intelligence becomes very important nowadays again. It is being used in everything: healthcare, agriculture. So both countries have agreed that they will work together on AI. Then the Semiconductor Ecosystem – again, you will see all these things are interconnected. Meaning, what happens is that the upstream resources are found with Indonesia – meaning the mines, minerals, all of this are with Indonesia. So if India joins in this, then all the things regarding the supply chain we are talking about can be secured; it will help overall.

Then UPI again. UPI is a very strong point of India, so we will promote it together with Indonesia. If any Indians go to Bali or to different places in Indonesia, they will be able to make payments easily there. Fintech, student mobility – all these things will be possible.

Education again. Please note, the Indian Institute of Management (IIM) B... is opening its own campus in Indonesia, and due to this, the education management, faculty exchange, and executive training there will be strengthened again. India's educational outreach abroad will become much better.

In the matter of Healthcare again, India's pharmaceutical industry can play a very big role in Indonesia's healthcare system. So a deal has been made on this too.

Agriculture is again important for both countries. Please note, food security for India, and agricultural technology for Indonesia too. So both countries are again going to work together so that the agriculture of both countries improves and gets better.

And besides this, the Blue Economy. Now in the Blue Economy, we basically talk about fisheries, marine biotechnology, and coastal tourism. So here too, both will try to promote each other.

And in Space, look, India is doing quite well. So here, India can help Indonesia very well in satellite application, disaster monitoring, and navigation, and Indonesia needs that.

But yes, look, so many things are not easy. Despite all these agendas, ambitious agendas, several issues can arise in the long term. Because you have to implement them in a timely manner. Agreements can be announced for the sake of saying it. But will they be implemented correctly and on time or not? Is the major defense deal being financed or not? There is an infrastructure project. Its financing, and besides that, there will be competition too. Look, China will also have its eyes on this. So China will also try to lure [Indonesia] in one way or another. So we will see all those challenges coming. We will have to manage geopolitical sensitivities. Let us see what happens regarding this in the future. But I hope that through this video, all the important things have now been understood by you. What agreements were made? What happened in this visit?

Before leaving, an interesting question for all of you. Can you tell which among these is the largest Indonesian island? The largest. And the correct answer for this, all of you know. It will definitely be found on my Instagram. If you are not there, it's okay. You can get the correct answer from Telegram. And friends, as I told you, if you are preparing for UPSC and want any batch, you just have to use this code 'Ankit Live'. If there is any doubt or problem regarding the batch, this phone number is given here; you can call on this. You will get all the information about mentorship, test series, everything. And please note, a 50% flat discount is being given to you right now, or you can avail of it. Study IQ is your selection. [Music] Our mission.