Wednesday, June 20, 2007

Beyond Defense Cooperation

Early this week, Indian Foreign Minister, Pranab Mukherjee, was on a four-day Southeast Asian tour. The destinations were Indonesia and Singapore with the enhancement of defense, economic and trade cooperation on his agenda.

In Indonesia, he co-chaired the third Indonesia-India Joint Commission (JCM) meeting along with his Indonesian counterpart Hassan Wirayuda. It was a routine meeting between the two countries’ officials to review the entire gamut of relations and make plans to enhance them. Usually, the outcome of such a meeting is rarely visible on the field. But this time, it is different.

On defense cooperation, the recent ratification of defense cooperation agreement by the Indonesian parliament has paved the way for future strategic cooperation between the two countries. The first ever meeting of a Joint Committee for India – Indonesia Defense Cooperation in Jakarta on 12 – 14 June 2007 was one of the results from this agreement. Joint training of defense personnel and the stepping up of maritime security of the vital and strategic Straits of Malacca are also on the table. Moreover, the two countries agreed to jointly produce military equipments in the future.

In trade, the two countries agreed to maximize their efforts to erase any barriers that might hamper their bilateral trade. With India’s steady economic growth of 8 to 8.5 percent per year and an improving Indonesian economy, the two countries agreed to double their bilateral trade to $10 billion by 2010 from the current level of 4.7 billion. This is not a difficult to achieve given growing interest of business community in each other's country.

The Indian government also offered to rebuild the historic Hindu Prambanan Temple damaged by Yogyakarta earthquake last year. The two countries also agreed to enhance tourism industry cooperation. They agreed to ease visa regulation for Indian and Indonesian nationals. The Indonesian government has even taken a step ahead by including Indian passport holders in the list of visa on arrival policy last year.

Besides defense and trade, the meeting also discussed the possibility of cementing cooperation on Special Economic Zone, development of alternative energy, mutual legal assistance on crimes and extradition treaty, biotechnology and women empowerment programs.

Discussions on IT, health, pharmaceuticals, nuclear technology, and the future of India – Indonesia space cooperation, especially after the establishment of Second Telemetry Tracking and Command Center in Biak and the launch of LAPAN TUBSAT Micro satellite using India’s rocket launcher last January 2007 were also held during Pranab’s visit to Jakarta.

A Memorandum of Understanding on the establishment of a Vocational Training Center in Aceh, specializing on construction, was also signed in this visit.

For India, Indonesia is a key strategic partner of India in the 10-member Association of Southeast Asian Nations (ASEAN). By its sheer size as the biggest country in the region Indonesia is a magnet for investment. Investors from the US, Europe, China, East Asian countries like Japan and South Korea are competing to invest in Indonesia. And for that reason, India as an emerging global power does not want to be left behind. With the new spirit of Look-East Policy, India is engaging its eastern neighbors, the Southeast Asian region, more seriously.

Similarly, the “New Strategic India – Indonesia Partnership” agreement signed by President Yudhoyono and PM Manmohan Singh in New Delhi two years ago is finally yielding some fruits. Tata, Bajaj, TVs, Mittal Steel, Essar Hutchinson are now coming to Indonesia while Indonesian pilots are flying Indian planes in India’s airspace. Moreover, with India’s booming information technology industry, pharmaceuticals, outsourcing and manufacturing sectors, strong services as well as a spending-hungry middle class, India should emerge as an attractive place for Indonesian businesses to make money.

To conclude, Indonesia is the heavyweight in the Southeast Asian region and is now coming out of its internal crisis. India is an emerging global power in Asia with the potential of balancing the Chinese domination in the region. Thus it is very sensible and useful for both countries to strengthen strategic, political and economic ties. Defense is not the only important cooperation that needs to be enhanced. A better, complete, multi-faceted bilateral relationship between India and Indonesia should be the main target of the two governments.

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