PM's Indonesia visit could lay foundations of nickel diplomacy, Pg13

Key Highlights:

• Prime Minister Narendra Modi's visit to Indonesia from July 6-8 aims to secure India's access to critical minerals, particularly nickel.
• Indonesia holds the world's largest nickel reserves, essential for India's electric mobility and clean energy transition.
• The visit seeks to establish India's presence in Indonesia's nickel value chain, currently dominated by Chinese investment.
• The visit also strengthens the Comprehensive Strategic Partnership between India and Indonesia, focusing on defense, connectivity, and maritime security.
• Indonesia is India’s second-largest ASEAN trading partner, with a bilateral trade target of US$100 billion by 2030.

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Detailed Insights:

• India requires secure access to critical minerals like nickel, cobalt, bauxite, tin, and rare earths for its clean energy transition.
• Indonesia's strategic location, straddling the Malacca Strait, makes it a vital partner for India's Indo-Pacific Strategy.
• The visit reciprocates President Prabowo Subianto’s 2025 visit to India and precedes his expected visit for the BRICS Summit in September.
• Historical ties, including the 1955 Bandung Conference and the Non-Aligned Movement, underpin the strong bilateral relationship.
• India's Act East Policy aligns with Indonesia's maritime ambitions, exemplified by the strategic potential of Sabang port in Aceh province.
• Defense cooperation, including potential acquisition of BrahMos supersonic cruise missiles by Indonesia, is a key immediate outcome.
• China's Nine-Dash Line overlaps Indonesia’s Exclusive Economic Zone around the Natuna Islands, creating a strategic backdrop for cooperation.
• Despite being India's second-largest ASEAN trading partner, bilateral trade (currently US$20 billion deficit for India) is below potential.
• Connectivity challenges, such as limited direct flights and shipping links, need to be addressed to deepen engagement.

Key Concepts Involved:

• Critical Minerals: Minerals essential for economic and national security, whose supply chains are vulnerable to disruption.
• Act East Policy: India's foreign policy initiative to strengthen economic and strategic relations with Southeast Asian and East Asian countries.
• Indo-Pacific Strategy: A geopolitical concept emphasizing a free, open, and inclusive region stretching from the Indian Ocean to the Pacific Ocean.
• ASEAN: The Association of Southeast Asian Nations, a regional intergovernmental organization promoting economic, political, and security cooperation.