Indonesia President's India Visit Heralds New Era Of  Cooperation

Discussion in 'Foreign Relations' started by ejazr, Jan 25, 2011.

  1. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    http://www.thejakartaglobe.com/home...a-visit-heralds-new-era-of-cooperation/418643

    Jakarta. President Susilo Bambang Yudhoyono will arrive in India today for a three-day visit seeking to shore up already strong bilateral ties with the country.

    He is expected to witness the signing of at least 30 agreements during his second state visit to India as president.

    “It is very rare for the same president to have two state visits, and I think it is a symbol of how important India and Indonesia are for each other,” said Biren Nanda, the Indian ambassador to Indonesia.

    He added that the visit is “the most important visit of our calendar year” and is expected to create a framework for bilateral cooperation that will carry the two countries’ relationship to a new level.

    Fifteen major economic, trade and investment deals are scheduled to be signed by the two parties on Tuesday. The countries are also expected to sign agreements to cooperate in fields ranging from politics to education, science, technology, culture, media and other people-to-people partnerships.

    India regards Indonesia as the most influential member of the Association of the Southeast Asian Nations, and with Indonesia’s increasingly important role in global affairs, such as the G20 and other multilateral forums, India views Indonesia as a key country in its “Look East” policy.

    “That is why we want to have a very close and strategic relationship with Indonesia,” Nanda said.

    One element of the people-to-people cooperation is a two-year Memorandum of Understanding between the Indonesian and Indian press councils.

    The MoU will be signed by Indonesian Press Council chairman Bagir Manan and his Indian counterpart Ganendra Narayan Ray in the presence of Yudhoyono and Indian Prime Minister Manmohan Singh.

    Press Council member Bekti Nugroho said the MoU includes an agreement to establish a journalism exchange program and to organize a conference for journalists covering conflict and terrorism.

    Nanda said both India and Indonesia are developing countries that are tyring to raise the standard of living of their people within a democratic framework.

    “A very important part of democracy in both countries is the role of the press. As a watchdog, it keeps an eye on what is happening,” he said.

    Indonesia and India agreed to establish a strategic partnership during Yudhoyono’s first state visit to India in 2005.

    In 2007, the countries held the Third Indonesia-India Joint Commission meeting, chaired by the foreign ministers of both countries, in which they drew up an action plan to implement the partnership.

    “During the last five years, we have implemented many of the agreements and created many focal points for dialogue between ministries and departments,” Nanda said.

    “We have been quite successful in making our relationship closer and more productive,” he added, citing an example in space cooperation in which an Indonesian microsatellite, the Lapan-Tubsat, which is currently used for environmental monitoring, was launched in 2007 from India’s Sriharikota space center.

    Soewarto Hardhienata, the deputy chief of aerospace technology at the National Aeronautics and Space Agency (Lapan), said an Indian rocket will also assist Indonesia in putting two additional microsatellites into orbit, the Lapan-A2 and the Lapan-Orari. The satellites will be used for communications and remote-sensing applications.

    While in India, Yudhoyono is also scheduled to attend India’s Republic Day celebrations on Wednesday as the country’s chief guest.
     
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  3. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    The India-Indonesia Alignment

    The long partnership between the two large democracies is deepening against the backdrop of a more menacing China.

    By HARSH V. PANT

    Indonesian President Susilo Bambang Yudhoyono will attend India's Republic Day celebrations tomorrow. A similar visit by Sukarno for India's first Republic Day in 1950 was intended to cement ties among what was then the Non-Aligned Movement of developing countries unwilling to join either side in the Cold War. This time, the visit will not just mark another step in India's "Look East" policy of encouraging greater engagement and integration between India and Southeast Asia. It will also signal two large democracies growing closer as authoritarian China grows more menacing.

    The visit is part of a broader pattern: Indian Prime Minister Manmohan Singh has in the past year traveled to Japan and Malaysia for bilateral visits and to Vietnam for the eighth Association of Southeast Asian Nations-India Summit. He has made it clear that his government's foreign-policy priority will be East and Southeast Asia, which are poised for sustained growth in the 21st century.

    The basis of the India-Indonesia partnership dates back to the founding fathers of these two nations—Jawaharlal Nehru and Sukarno—who offered a distinct foreign policy worldview that drew on their shared colonial experiences. In the last decade, both New Delhi and Jakarta's worldview may have changed a bit, but the potential for partnership hasn't. India with its Look East policy substantially enhanced its presence in the region while Indonesia took the lead in bringing one of the world's fastest growing economies closer to Asean. Both India and Indonesia want to seize the opportunities offered by landmark economic growth in Asia.

    Economic engagement between the two is growing rapidly, and gained further momentum with the signing of the India-Asean free-trade agreement last year. The deal commits New Delhi to cut import tariffs on 80% of the commodities it trades with Asean, with the goal of reversing India's growing marginalization in the world's most economically dynamic region. Last year's deal focused on trade in goods; India and Asean are now in talks to widen the agreement to include services and investment. India hopes to increase its $44 billion trade with Asean to $50 billion by next year.

    Indonesia will figure prominently in India's economic engagement with Southeast Asia. Beyond the regional FTA, India and Indonesia have started negotiations on a comprehensive economic cooperation agreement that would further liberalize trade. Indonesia is an important source of energy and raw materials for India. Bilateral trade exceeded the $10 billion target set by the two states in 2010. Major Indian companies, including the Birla group, the Tatas, Essar, Jindal Steel and Bajaj Motors, are now operating in Indonesia. Indian investment is spread across banking, mining, oil and gas, iron and steel, aluminum, IT, textiles and telecommunications, among other industries.

    India and Indonesia also have been steadily adding enhanced security and political ties as well. The two signed a strategic partnership agreement in 2005 that started an annual strategic dialogue. The next year they ratified a defense cooperation agreement, initially signed in 2001, which focused on areas of defense supplies and technology, as well as on joint projects. This week the two will sign an extradition treaty and also a "mutual legal assistance treaty" for gathering and exchanging information to enforce their laws. They will also seek to renew an earlier statement of understanding on civil nuclear cooperation.

    Joint naval exercises and patrols, and regular port calls by their respective navies, have become a regular feature of the India-Indonesia relationship in recent years. India has also become a major source of military hardware for Jakarta.

    Such cooperation is a natural result of geography. Indonesia's location, combined with its naval forces, allow it to work effectively with India to ensure security in the sea lanes of communication between Europe, the Middle East and Southeast Asia. Together they control the entry point from the Bay of Bengal in the Indian Ocean to the Straits of Malacca. Similarities in democratic governing systems and broad foreign-policy outlooks have helped dramatically: Viewing India's maritime presence as benign, Indonesia has openly invited India to help littoral states in the region maintain the Straits' security.

    All of this is significant because it stands in stark contrast to China's approach to its waters, which has more often than not deteriorated to outright aggression. Unlike China's rise, which is increasingly viewed in the region as a reason for suspicion and alarm, India's poses no such threats. While it is large, its democratic governance leads to greater transparency in its foreign-policy motives, which in turn makes it easier for partners to feel comfortable working with New Delhi. Cooperation with Indonesia offers a clear example of what a greater role for India in Southeast Asia would look like, and as such gives other countries in the region little cause for concern.

    New Delhi's ambitious policy in East and Southeast Asia is aimed at significantly increasing its regional profile. Smaller states in the region are now looking to India to act as a balancer in view of China's growing influence, while larger states also see it as an attractive engine for regional growth. It remains to be seen if India can indeed live up to its full potential, as well as to the region's expectations. But with the wooing of Indonesia, India is signaling that it is indeed serious about its presence in Southeast Asia.

    Mr. Pant is a professor of defense studies at King's College, London.
     
  4. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Joint Statement: Vision for the India-Indonesia New Strategic Partnership over the coming decade

    January 25, 2011

    1. The Prime Minister of India H.E Dr. Manmohan Singh welcomed the President of the Republic of Indonesia H.E Dr. Susilo Bambang Yudhoyono on a State Visit to India from January 24-26, 2011 and as the Chief Guest on the occasion of India's Republic Day on January 26, 2011. The two leaders held extensive talks on bilateral, regional and global issues of shared concern on January 25, 2011. The two leaders recalled the establishment of diplomatic relations between the two countries six decades earlier and decided to mark the year 2011 as the celebration of six decades of diplomatic relations between the two countries and to hold related events to mark the anniversary in the two capitals.

    2. The two leaders reaffirmed the political commitment of both countries for upgrading bilateral relations in order to achieve sustained progress and prosperity for the two countries in the rapidly evolving and dynamic regional and global political and economic situation. They also acknowledged that Indonesia and India are natural partners as two developing democratic countries in the region, committed to multiculturalism, pluralism and diversity. They have responsibility for, and are capable of, responding to global and regional challenges, and they must play an active role in the promotion of democracy, peace and stability in Asia Pacific region and the world at large.

    3. The Prime Minister of India and the President of Indonesia expressed satisfaction at the steady growth of political, security, economic, science and technology and cultural exchanges between the two countries. They noted the development of active cooperation through numerous frameworks governing defense, science and technology, space cooperation, agricultural science, culture, tourism, and youth affairs & sports. The two leaders also acknowledged cooperation in education, media, air services, energy resources including oil, gas, coal, and renewable energy, prevention of smuggling, prevention of illegal trade in narcotics, disaster management, cooperation in the area of small and medium enterprises, meteorology, climatology and geophysics including climate change, health, marine and fisheries. They reiterated their common desire for accelerating the implementation of cooperation in these areas and monitoring such cooperation through the mechanism of Action Plan on Implementing the New Strategic Partnership drawn up during the Indonesia-India Joint Commission Meeting (JCM) in June 2007.

    4. With a view to facing the challenges in food security as means of providing basic human needs for the two countries, both leaders encouraged the implementation of the MoU in the field of agriculture and allied sectors that was signed on December 1st, 2008, and also the implementation of work plan for period of 2009-2013 in the area of agriculture development, joint research in agriculture science, technology development on post harvest and processing, agriculture marketing system and export, joint research on Animal Diseases and capacity building.

    5. The two leaders realized the importance of education on human resource, economic and social development in both countries, therefore committed to strengthen it through the signing of Memorandum of Understanding on Education which covers all level of education.

    6. The two leaders agreed to have summit level meetings on the sidelines of multilateral events. Both sides recognized the importance of the biennial Joint Commission Meetings (JCM) at the level of the Foreign Ministers, and agreed that the next JCM should be held in the first half of 2011. While welcoming the steady exchange of Ministerial visits between the two countries, the two sides encouraged to promote regular exchanges at the Cabinet level, inter alia, between the Ministers of Energy including Oil, Gas, Coal, Power and Renewable Energy, Commerce and Industry, Health, Agriculture, Science and Technology, Defense, Education, Home/ Coordinating Ministry for Political, Legal and Security Affairs, and Tourism. The two leaders also encouraged regular exchanges between Parliament as another brick to strengthen bilateral ties and solidify democratic values.

    7. With a view to developing a 'Vision Statement 2025' for the Indonesia-India Strategic Partnership, the President of Indonesia and the Prime Minister of India announced the establishment of an Eminent Persons’ Group (EPG). The deliberations of the EPG would guide the future progress and prepare a blue-print of Indonesia-India relations over the next 15 years.

    8. The two leaders unequivocally condemned terrorism in all its forms and manifestations and stressed that there could be no justification whatsoever for any act of terrorism. Recognizing the common threats to national security from transnational crimes, including international terrorism, the President of Indonesia and the Prime Minister of India resolved to significantly enhance bilateral cooperation in combating terrorism. The two leaders resolved to commit their countries in improving sharing of intelligence, the development of more effective counter terrorism policies, enhance liaison between law enforcement agencies, provide assistance in the areas of border and immigration control to stem the flow of terrorist related material, money and people and specific measures against transnational crimes, including international terrorism through the already existing mechanism between Indonesia and India. The two leaders desired that the next meeting of the Joint Working Group on Counter-Terrorism should be held in the first half of 2011.

    9. The President of Indonesia and the Prime Minister of India noted that Indonesia and India are strategic partners, neighbouring countries sharing a common maritime boundary, with a common interest in cooperating in the maintenance of regional peace and security. They expressed satisfaction at the steady expansion of bilateral defence cooperation between the two countries and stressed the importance of strengthening bilateral defence cooperation, through regular exchanges between the defence establishments of both countries. The two leaders welcomed institutionalization of biennial dialogue at the level of Defence Ministers.

    10. The two leaders stressed the importance of strengthening cooperation in the areas of science and technology. They expressed satisfaction at the progress achieved during the 2nd Joint Science and Technology Committee Meeting in October 2010. The agreed areas of cooperation are in the field of biotechnology, marine, agriculture, information and communication technology, health and medicine, energy, disaster management, aeronautic and space technology.

    11.The two leaders noted the importance of and agreed to establish a cooperation between Indonesia and India in the fields of meteorology, climatology, including climate variability and change, geophysics and Early Warning of Coastal Hazards as well as related issues through the science and technology development and application and efficient management in creating disaster risk management community effectively and in a timely manner.

    12. The two leaders expressed satisfaction at the growing trade and investment ties between Indonesia and India. Noting that the bilateral trade volume between Indonesia and India had increased nearly threefold since the establishment of the Strategic Partnership between the two countries in 2005, the two leaders agreed to set the new target for bilateral trade volume of US$ 25 billion by 2015.

    13. The two leaders also noticed the importance of encouraging outward investment from both countries. In this regard, Indonesia stressed India as a potential partner because its investment realization in Indonesia has steadily increased for the last twenty years. With regard to the National Investment Roadmap, Indonesia would also welcome further investments from India, especially in the fields of energy, food and infrastructure.

    14. The two leaders announced a number of important initiatives to further tap the potential of bilateral trade and investment between the two countries. It was agreed to have a Biennial Trade Ministers Forum, including the establishment of a ‘Trade and Investment Forum’ between the Trade Ministers to exploit the potential of trade and investment opportunities in both countries.

    15. The two leaders welcomed the entry into force of the India-ASEAN Free Trade Agreement in Goods on October 1, 2010, and expected the utilization of the Agreement would increase in the following years.

    16. Both leaders were pleased to announce the commencement of negotiation on Indonesia - India Comprehensive Economic Cooperation Agreement (II-CECA), building on what has already been achieved under the India-ASEAN FTA. The decision to embark on negotiations will take forward the shared goal in the New Strategic Partnership 2005 of increasing the volume of bilateral trade and investment. Both leaders agreed that the CECA would be a comprehensive agreement, covering economic cooperation, trade in goods and services, and investment and hoped that it would further contribute to building a higher-level and mutually beneficial economic cooperation between the two countries.

    17. Noting the mutual interest of both countries in the development of energy resources and the introduction of investment associated with such resources along with new technologies, the two leaders announced the establishment of an Energy Forum co-chaired by the Minister of Energy and Mineral Resources of Indonesia and the Minister of Coal of India, supported by expert forums in the respective countries to accelerate the implementation of programs of mutual interest.

    18. The two leaders reiterated that as major countries deliberating the great issues of our time - the reform of the United Nations, tackling the global economic and financial crisis and working together on global issues like climate change, Indonesia and India can and must work together effectively in fora like the UN, UNFCC, WMO, WTO and the G-20 to make a difference and to help achieve consensus on these important issues.

    19. The President of Indonesia and the Prime Minister of the India were pleased to note the growing cultural ties between the two countries. Recalling the long history of cultural and historical links between the two countries, they stressed the importance of cultural exchanges in building strong people-to-people ties which would reinforce ties in all areas. They agreed on a number of new initiatives including the exchange of cultural festivals. Ramayana festivals, reciprocal seminars on historical and cultural ties between India and Indonesia and cooperation in tourism promotion.

    20. With a view to enhancing people-to-people links, both leaders agreed to enhance and strengthen cooperation in the cultural sector as means to promote extensive people-to-people contacts by committing to implement cultural exchange programme for 2011-2014.

    21. The two leaders recognized that a quantum leap in tourism between India and Indonesia is desirable to strengthen vibrant and longstanding people to people ties. As a step towards this objective, the Prime Minister announced a scheme of granting visa on arrival to the citizens of Indonesia.

    22. In order to strengthen and reinforce consular cooperation and traditional friendly relations between India and Indonesia, the Prime Minister of India announced the establishment of a Consulate General of India in the Province of Bali which was warmly welcomed by the President of Indonesia. The establishment of the Consulate will reinforce the strong cultural links between Indonesia and India.

    23. President Yudhoyono and Prime Minister Singh concluded that their meeting was a historic milestone as they sought to elevate their new Strategic Partnership to a higher level for the benefit of their nations and the entire mankind. President Yudhoyono invited Prime Minister Singh to visit Indonesia, which was graciously accepted.

    24. President Yudhoyono expressed his appreciation and gratitude to President Patil, Prime Minister Singh and the people of India for their extraordinary warmth and hospitality during the visit.

    New Delhi
    January 25, 2011
     
  5. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    India-Indonesia: Towards Strategic Convergence

    Pankaj K Jha

    January 24, 2011

    In the last few years, Indonesia has maintained its momentum of economic growth as well as decentralisation and strengthening of democratic institutions. Both India and Indonesia are keen to share best practices in governance, decentralisation at the rural level, and the effective allocation of funds for development. While issues of democracy, trade and services, reforms of the United Nations, regional security issues, as well as the rise of China will be discussed during President Yudhoyono’s visit, the main focus of the talks will be on furthering economic growth, production interdependence and cooperation in the services sector. At the same time, there will be a reiteration of the need for direct flights between the two countries and the promotion of tourism.

    This meeting becomes more significant in the wake of Obama’s visit to both nations around the same time last year, which underscores the role the two nations are expected to play not only at the global level but also for ensuring regional security. The question that arises at this point is whether the strategic partnership has been boosted by US initiatives or whether India and Indonesia have synergised their interests in such a way that they are perceived as natural partners, not only by the political set ups in the two countries, but also by their societies and media. Moreover, the further strengthening of this partnership will require a careful evaluation of defence and strategic issues.

    Post the Cold War, Indonesia saw India as a viable partner for acquiring spare parts, training pilots, and servicing its MiG-29 fighters. India-Indonesia defence relations were consequently revived in the early 1990s after more than three decades of an undeclared freeze dating from the early 1960s. India sought to concretise this budding relationship by proposing a draft memorandum of understanding on defence cooperation in 1995. Subsequently, in 2001, the two countries signed a bilateral agreement on cooperative activities in the field of defence, though it did not come into effect for six years because Indonesia delayed its ratification.

    Bilateral defence ties saw an up tick in the wake of the Indonesian president’s India visit in 2005. On this occasion, India and Indonesia agreed to hold an annual "strategic dialogue" at the level of senior officials. Indonesia also welcomed India's offer of defence cooperation and joint production of defence equipment. Reportedly, Indonesia also sought India’s cooperation in the field of rocket technology and raised the issue of India supplying radar and communication systems to enhance its naval capabilities for patrolling the Malacca Strait.

    It is known that India has been providing training to Indonesian military officers under the ITEC-I programme. At the conclusion of the first-ever Joint Defence Cooperation Committee (JDCC) meeting in Jakarta in June 2007, India agreed to further enhance its military-to-military engagement with Indonesia. The possibility of service-to-service talks is being explored, and the two sides have identified procurement and "co-production" of defence equipment as promising areas for cooperation based on the principle of "maximising comparative advantages." In an interview to The Hindu, Indonesian defence minister Juwono Sudarsono also expressed his country’s interest in accessing India’s know-how in "network centric warfare”.

    Possible areas of cooperation

    The training of pilots, anti-submarine warfare exercises, hydrographic mapping and joint production are areas of immense potential in terms of mutual defence cooperation. India could assist Indonesia in upgrading its Supadio air base which is an aerial surveillance centre for meeting any traditional and non traditional exigencies.

    Deepening linkages between radical groups in Indonesia and Pakistan is a matter of concern for both countries. There is a need to enhance cooperation in exchanging intelligence about terror outfits and their cadres. This becomes more important given the appearance last year of Ál Qaeda in Aceh, given that Aceh is in the close vicinity of the Andaman and Nicobar Islands. India can also learn lessons from the Indonesian Anti-Terrorism Attachment (ATA) unit for coordinating action and cooperation with the civil society.

    India and Indonesia also need to keep long term strategic perspectives in mind, especially with regard to the increasing Chinese naval footprint in the Indian Ocean. China has been trying to build naval bases in Myanmar and Timor Leste, which directly impinges on the strategic interests of India and Indonesia. Cooperation is thus becoming important, especially given the Indian maritime doctrine’s declaration that the entire Indian Ocean region, from the Persian Gulf to the Straits of Malacca, is its “legitimate area of interest.” Further, the Maritime Strategy document released in 2009 listed the Sunda and Lombok straits as falling within the navy’s area of strategic interest. According to the document the two straits are major choke points and of vital strategic importance for India. The Lombok Strait with a minimum channel width of 11.5 nm, has sufficient width and depth and is far less congested than the Malacca Strait. Ships too large for the Strait of Malacca use this passage. An alternate route to the Malacca and Lombok Straits is the Sunda Strait, which is 50 nm long and 15 nm wide at its northeast entrance. Large ships avoid passage through this strait due to depth restrictions and strong currents.[fn]India’s Maritime Military Strategy, Integrated Headquarters, Ministry of Defence (Navy), 2009, pp.25-28[/fn] Cooperation with Indonesia is a prerequisite to enable the navy’s operations in these waters. In fact, joint coastal monitoring has already begun since October 2010, and there is a case for increasing cooperation between their respective coastal security agencies as well as for the conduct of joint maritime exercises in the Indian Ocean as well as in Indonesian waters.

    Given that India has begun to acquire US weapons platforms, it can learn from the Indonesian experience of operating American military equipment. For instance, Indonesia has been operating F-16 aircraft as well as earlier versions of C-130s, while India has only recently procured the C-130 J heavy lift aircraft and is in the process of choosing a new fighter aircraft from a list that includes the F-16.

    India needs a defence export policy that will win it long term strategic friends. India can supply light combat helicopters, military trucks and also radar to the Indonesian military.

    There is also a need for regular Track-II dialogue between think tanks and economic institutes of the two countries to generate understanding and better perspectives about each other’s security interests and concerns
     
  6. Godless-Kafir

    Godless-Kafir DFI Buddha Senior Member

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    Well Mr.Bangbang is an good guest to witness all those military equipments! :D
     
  7. Ray

    Ray The Chairman Defence Professionals Moderator

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    This commentary in important to keep in mind.
     
    Last edited: Jan 25, 2011
  8. Yusuf

    Yusuf GUARDIAN Administrator

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    The Sunda strait and the Lombok Strait cannot be a substitute for the Malaccas. Its quite a difficult route compared to the ease of malaccas. Once indonesia is firmly in the anti china camp, its going to make it difficult for china to mess in the region.

    Indonesia is part of Indias look east policy. A lot of potential is there for overall growth of relations.
     
  9. Ray

    Ray The Chairman Defence Professionals Moderator

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    Indonesia has been under the grips of the Communists earlier.

    One wonders.
     
  10. Yusuf

    Yusuf GUARDIAN Administrator

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    Obama visit there might have just tipped them over to the other side.
     
  11. Rage

    Rage DFI TEAM Stars and Ambassadors

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    Images from the state visit:

    [​IMG]

    [​IMG]


    India, Indonesia clinch $15bn in business deals

    (AFP)

    NEW DELHI — Indonesia and India signed on Tuesday business deals worth $15.1 billion and set an ambitious target of doubling trade in five years as Asia's two biggest democracies moved to strengthen ties.

    The 18 pacts spanning energy, infrastructure, manufacturing, services and other sectors were signed in the presence of visiting Indonesian President Susilo Bambang Yudhoyono in New Delhi.

    The Indonesian president will be India's chief guest at the country's Republic Day celebrations on Wednesday, an invitation reflecting New Delhi's "Look East policy" aimed at boosting relations with its Asian neighbours.

    "I hope this visit will create new opportunities in our bilateral cooperations, including economic cooperation and people-to-people contact," Yudhoyono told Indonesian and Indian business leaders in New Delhi.

    "We are growing stronger as economic partners," Yudhoyono said. "There is so much we can do together."

    Yudhoyono, who arrived for a state visit Monday accompanied by a dozen senior ministers, held talks with Prime Minister Manmohan Singh earlier in the day.

    The two sides also signed cooperation agreements on fighting terrorism, money-laundering and other criminal activities.

    Yudhoyono said the two countries had set a goal of doubling trade to 25 billion dollars by 2015.

    The announcement came as the countries said they had begun negotiations on a market opening pact to reduce tariffs and goods and services to boost trade.

    Trade volumes between the two countries have tripled to $12 billion from $4 billion in 2005.

    Agreements were signed by a number of key Indian companies including the Tata Group and infrastructure heavyweight GVK, the company building Mumbai?s new airport.

    GVK will build international airports on Indonesia?s resort island of Bali and in Yogyakarta, a city in central Java.

    GVK chairman Krishna Reddy told reporters the deals were worth $3 billion to $5 billion.

    "We are very excited by the opportunity to create new landmarks in Bali and Java," Reddy said.


    http://www.google.com/hostednews/af...ocId=CNG.148a6c382024ebbebe64021de441dac9.2f1
     
  12. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    More than potential for just trade, we have a great chance of selling them military equipment. Dhruvs top the list both LUH, LCH and ALH variants. Those guys have already got some Chinese anti-Ship missiles and that is an alarm bell that Chinese have reached Indonesia strategically much before we did. We have a common history especially by their Bali province now, which must be utilized to its best. Indonesian islands are rich in resources and specifically in oil especially their northeast Islands. ONGC, Reliance etc need to go there and start that oil pumping before Chinese race us there.

    We have no conflict with them and they are liberal and tolerant people in general like us, followed by common ancient culture. There is certainly no harm in building military confidence measures and relationship with them, especially in the Navy sector. We have made Shivalik class cutting edge frigates for ourselves. Surely we can offer them something along the line with BrahMos as a package deal. Its something they won't be able to refuse. :)
     
  13. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    It is often almost embarrassing how come we don't come into the picture even though IOR is our territory. The strategic circles either always indicate towards Japan, S Korea, Australia or USA even when in IOR and not even once mention us. Guess we aren't giving a good enough threatening posture as a significant threat to the Reds. :D.

    As for Australia, they won't do jack unless US Navy jets are there on Australian island territories or even on mainland. Australia is not even strong enough to fight off Bangladesh without NATO. How are they going to manage countering the PLAN which could simply gobble them in a blink of an eye?:boxing:
     
  14. civfanatic

    civfanatic Retired Moderator

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    Indonesia has the world's largest population of overseas Chinese. There are 8 million people of Chinese descent in Indonesia.

    On a side note, Obama can speak Indonesian.
     
  15. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    If I recall correctly, Indonesia had a Communist insurgency but it never fell to the Communists. Sukarno was the founding president and balanced the opposing forces of military and communists. He was also a founder of the NAM movement along wtih Nehru. Later the Military outmanouvered him and staged a Coup under General Suharto. It is alleged that the US considered him Soviet leaning and supported the coup in 1967. Then on Indonesia was firmly in the western camp and was even in a military pact under SEATO with US.

    Indonesia may have 7-8 million Chinese, but the entire Indonesian history and culture is very much influenced by India. Even in the modern era, Indian and Indonesian leaders have had close ties. Nehru in particular was close to founding President Sukarno.

    The recent bonhomie again is to do in part with countering China's influence. Alignment with Japan, Indonesia, S. Korea all are part of this and all these countries have been pushed around by China at one time or another in the past 2-3 years. Indonesia and other ASEAN countries continue to have disputes in the South China sea as well.

    Here is an interesting photo showing Nehru with Sukarno, the little girl on the tricycle became President Megawati Sukarnoputri
    [​IMG]
     
    Last edited: Jan 26, 2011
  16. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    New Delhi, Jan. 25

    India and Indonesia have started negotiations on a Comprehensive Economic Cooperation Agreement (CECA), building on what has been achieved under the India-Association of South East Asian Nations Free Trade Agreement.

    This was stated in a joint statement issued after delegation level talks between the Prime Minister, Dr Manmohan Singh, and the visiting Indonesian President, Dr Susilo Bambang Yudhoyono.

    “Both leaders agreed that the CECA would be a comprehensive agreement, covering economic cooperation, trade in goods, services and investment and hoped that it would further contribute to building a higher-level and mutually beneficial economic cooperation between the two countries,” the statement adds.

    The two leaders also announced a number of initiatives to further tap the bilateral of trade and investment relations between the two countries including establishment of a ‘Trade and investment forum' between the Trade Ministers. The two countries also set a new target for bilateral trade — $25 billion by 2015.

    A new Energy Forum, to be chaired by the Ministry of Energy and Mineral Resources of Indonesia and Minister of Coal from India, supported by expert forums in the two countries was also established to accelerate the implementation of programmes of mutual interest.

    The Prime Minister announced a scheme for visa-on-arrival for citizens of Indonesia.

    During the official level meeting, the two countries also signed a number of memorandums of understanding including one on Cooperation in Oil and Gas.

    India will look at exchanging expertise in schemes of increased oil recovery/enhanced oil recovery to raise recovery from the ageing oil and gas fields of ONGC. Indonesia has been using these schemes for improving its crude oil production, besides looking for opportunities in gas processing, petrochemicals, and gas sourcing in Indonesia.

    An MoU was also signed for Cooperation in the field of Micro, Small and Medium Enterprises.

    Later in the day, the two countries signed 16 business memorandums of understanding worth $15.1 billion in diverse fields including infrastructure, mining and manufacturing.

    While the GVK group signed two MoUs for setting up greenfield international airports in Bali and Java, Tata Power also signed two MoUs for ‘Training and internship for civil servants and National Electric Company'.

    Reliance Infrastructure signed an MoU in the infrastructure sector to develop railway and seaport. The Minister for Chemical and Fertilisers, Mr M.K. Azhagiri, signed an MoU with the Indonesian Minister for Industry for urea manufacturing.

    [​IMG]
     
  17. Yusuf

    Yusuf GUARDIAN Administrator

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    Since when did the IOR become indian territory? International seal lanes are for all to use, India considers the IOR as a legitimate area of interest which it will protect for furthering its own interests.
     
  18. Ray

    Ray The Chairman Defence Professionals Moderator

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  19. chex3009

    chex3009 Regular Member

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    India-Indonesia Deals Signal Trend

    Emerging Nations' Investing in Each Other Gives Global Economy a New Direction: 'South to South'

    Indonesia and India vowed to double trade to $25 billion a year by 2015 and Indonesian President Susilo Bambang Yudhoyono signed $15 billion of investment pacts with Indian firms Tuesday, underscoring how fast-expanding ties between emerging nations are steadily reshaping the global economy.

    Economists call it "South-South" investment, and it is becoming an increasingly important growth strategy for dozens of developing economies around the world as they look beyond investment flows from the once all-powerful economies of Europe, Japan and North America.

    [​IMG]
    Indonesian President Susilo Bambang Yudhoyono, after inspecting an honor guard in New Delhi on Tuesday.

    At the same time, the biggest developing nations—China and India—are moving quickly to secure energy and minerals supplies from other, resource-rich emerging countries such as Indonesia to ensure they keep their economies fully powered up.

    The result: a boom in trade and investment that is already providing a buffer against the lingering impact of the 2008 financial crisis in the West—and which could remold the way large chunks of the world do business.

    Just as well, many analysts say. Globally, foreign direct investments—investments excluding financial instruments from one country to another—are still in a bit of a rut. The United Nations Conference on Trade and Development, or Unctad, estimates that total global FDI stood at $1.122 trillion in 2010, up only slightly from $1.114 billion the previous year. The figure is down 25% from average precrisis levels from 2005 to 2007.

    The World Bank, meanwhile, estimates FDI outflows from developing nations topped $210 billion last year, up from the previous record of $207 billion in 2008. Nearly two-thirds of this investment came from Brazil, Russia, India and China—and the majority of it went to other developing nations.

    India stood out by bucking the trend: The Reserve Bank of India said Monday that FDI into the country fell by 36% to $12.6 billion in the April-to-September period compared with a year earlier, due to hurdles in environmental clearances and land-acquisition and infrastructure problems.

    The central bank report is in line with Unctad's estimate saying India's FDI for all of 2010 fell 32% to about $24 billion.

    The drop in India comes against dramatic rises in FDI in other individual Asian economies. According to U.N. estimates, Hong Kong received nearly 30% more foreign investment in 2010 from the previous year and Singapore got 122% more. China got 6% more, at $100 billion. Overall, the United Nations report noted that FDI flows to South, East and Southeast Asia in 2010 were up 18% to $275 billion, after a 17% decline in 2009.

    Among the deals and memoranda of understanding that Indonesia's Mr. Yudhoyono formally signed in New Delhi on Tuesday are a good example of what is happening. Among them, Trimex Sands, part of the Trimex Group, plans to establish a titanium plant in Indonesia at an estimated cost of over $800 million, while GVK Power & Infrastructure Ltd. said it will spend $4 billion to $5 billion over the next three to four years to build airport terminals in the city of Yogyakarta and on the resort island of Bali. Analysts said the slew of deals—some of which were previously announced—will also help India secure reliable access to Indonesia's ample reserves of high-grade coal to fuel its electricity-generation needs.

    "The majority of the [agreements] that we signed include infrastructure development and strategic industries," said Gita Wirjawan, chairman of Indonesia's Investment Coordinating Board. "This will have a tremendous trickle-down effect on Indonesia's economy."

    Growing South-South business ties could ultimately benefit wealthier nations by boosting demand for their wares and services. But China's growing influence in Southeast Asia, partly through such trade, has forced the U.S. to counter by trying to strengthen diplomatic and security ties in the region.

    Both Indian and Chinese firms are also increasingly engaged in Africa. FDI to Ghana doubled last year to $1.11 billion, with Chinese companies accounting for around a fifth of the projects under way. India's Bharti Airtel Ltd., meanwhile, is now a major player in cellphone markets in 16 African nations, drawn in large part by growth prospects there.

    To be sure, not all of the developing world's money is being plowed back into other emerging markets. Many firms have used strong currencies to make beachheads elsewhere. Thailand's Sahaviriya Steel Industries PCL, for instance, is attempting to buy a steel plant in northeast England, while Indian conglomerate Aditya Birla Group is negotiating to acquire U.S.-based carbon black manufacturer Columbian Chemicals Co.

    The biggest impact from developing-market investment flows is being felt in other developing markets, however, and these South-South investments could be a boon to Indonesia in particular, analysts say.

    "Infrastructure is the main thing Indonesia lacks along with FDI investments, so this South-South spending helps kill two birds with one stone," says Wellian Wiranto, an economist with HSBC in Singapore.

    For years, Indonesia, a country of 230 million people and Southeast Asia's largest economy, has struggled to develop the infrastructure it needs to help sustain consistently high growth rates and cement its place among the world's top 20 economies. Corruption, erratic court decisions and populist efforts to restrict the ownership of key assets have combined to undermine the country's progress. Multinational firms often face legal challenges; France's Carrefour SA, for instance, currently finds itself in court after Indonesia's antitrust agency accused its local supplier of trying to create a monopoly.

    [​IMG]

    Now, other companies from other emerging nations such as India and China are helping to provide a possible answer, drawn in part by the prospect of access to Indonesia's natural resources such as palm oil and coal.

    India's investments in Indonesia began picking up pace in 2007, when Tata Power Co. paid $1.3 billion for 30% stakes in two large coal mines run by PT Bumi Resources in order to help guarantee coal supplies for the Indian firm's quickly expanding parent company, Tata Group. Since then there has been a flurry of investments, culminating in Tuesday's announcement, indicating that Indian companies, as well as Chinese firms, are becoming more familiar with operating in other, sometimes unpredictable markets.

    That's an important factor, says Dane Chamorro, managing director for North Asia at London-based risk consultancy Control-Risks Group Ltd., predicts that the trend of developing nations plowing billions of dollars into each others' economies will continue to be a significant driver of global growth even once the U.S. and Europe find their feet again. "There now is a much greater openness to investing overseas in other developing economies than there was before," Mr. Chamorro says. "There's a familiarity curve at work. Once one company does it, it makes it easier for the next person, too, as organizations figure out how to make it work."

    http://online.wsj.com/article/SB10001424052748704698004576103740709551386.html?mod=WSJINDIA__LEFTTopStories
     
  20. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    You just said the same thing in more indirect terms. :). Territory can either be legally administered or be considered areas of interest as politicians put it tacitly. As our Navy grows and patrols more of IOR, it will in a way become our territory. Owning an ocean in literal terms is impossible so 'own interest' term is applied here to convey a more friendlier tone to the same message.
     
  21. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Thanks for that Ray Sir, there are many similar accounts of CIA funding overthrows of governments among countries just because they were "afraid" that Communists would take over. From the Indonesian point of view, their communist was a large party but certainly did not have a majority and was mostly ethinic Chinese. And Sukarno was not going to let Communists take over.
    But the US had a very black and white view and considered that since Sukarno was not with them then he is with the Communists. Other democratically elected govts. overthrown including Mosaddeg of Iran in 1953 the coups in South America and Central America and so on.

    Finally the 30 year Suharto rule came to and end and the first democratically elected President was the daughter of Sukarno i.e. Megawati
     

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