India-RI ties: From estrangement to cooperation

India-RI ties: From estrangement to cooperation

Dipankar Banerjee sketches some emerging trends in the relations between India and Southeast Asia through the rubric of Indonesia.

"Estranged neighbors", is how one would describe India and Indonesia. For three long decades both countries had little to do with each other. Yet, these two large, adjacent countries, second and fourth largest respectively in the world by population, were bound in the past by deep and strong ties.

History, geography and culture have linked the Indian subcontinent with Southeast Asia, including Indonesia, for centuries. Trade flourished since the 5th century. Inevitably the flag followed, and kingdoms such as Sri Kshetra, Pagan, Khmer, Sriwijaya, Syailendra and Majapahit were established.

Architectural monuments like Angkor, Borobudur, Pagan and Lara Djonggrang symbolized the cultural fusion. But recent centuries of colonialism and the foreign powers' maritime dominance, kept the two neighbors separate, and tied them instead to their colonial masters half way across the globe.

Independence movements in both countries again drew them together in the 1920s. An emerging India strongly opposed the reimposition of Dutch rule in Indonesia after 1945. An international conference was convened in January 1949 in New Delhi to demonstrate Indian solidarity with the Indonesian people. The 1950s saw a convergence of interests. There was cooperation between the armed forces of both nations. India closely interacted with Indonesia in holding the Afro-Asian Conference in Bandung in 1955.

But the three decades of the 1960s, 1970s and 1980s were barren, with a palpable degree of tension. Yet, this did not prevent the signing of two major agreements in the 1970s: The Aug. 8, 1972, treaty demarcated the seabed covering the 90 miles between Sumatra and the Nicobar group of islands and the Jan. 14, 1977, treaty setting out the continental shelf boundary between Sumatra and the Nicobar islands in the Andaman Sea and the Indian Ocean. With these treaties there remained no outstanding issues between the two nations. But estrangement continued.

The end of the Cold War has brought to a close a chapter of history. New forces, new ideas and new concepts of security are now vying for a place in today's world. The emphasis is on regionalism and globalization. Market forces dominate economic planning. The emphasis is on internationalization and interdependence, from confrontation to searching for ways to develop cooperative security.

This was the backdrop to the Fifth India-Indonesia bilateral colloquium held in Delhi in mid-January this year. The nodal institutes involved were the Institute for Defense Studies and Analyses in New Delhi and the Center for Strategic and International Studies in Jakarta. Both sides attempted to understand the dynamics of regional developments and explore possibilities for future cooperation.

Much has happened to Southeast Asia in the last three decades. The Association of Southeast Asian Nations (ASEAN) has established itself as the most successful regional organization in the developing world and is set for expansion. Its Free Trade Agreement will allow greater regional trade. The East Asian Economic Caucus, if it takes off, will intensify regional economic dialogue. The Asian Pacific Economic Cooperation will do more across the Pacific. The ASEAN Regional Forum will address security issues by adopting cooperative mechanisms. The Singapore, Malaysian and Thai economies have been booming for some years and Indonesia, too, is on a path of high growth. National and regional resilience have been strengthened.

India has consolidated itself and has developed strong democratic traditions that provide it with both stability and continuity. Its inner resilience is enduring, notwithstanding the many Cassandras who would like to sound the end of the Republic. Since 1991, India's new economic policies have liberated it from its earlier shackles. Today, India is an uncaged tiger.

Delhi has adopted a "Look East" policy for some time now. It is not merely a managerial approach but is a concept of total engagement. It encompasses political, economic and strategic aspects. It is also rooted in India's past engagement with the region and is an expression of its Asian-ness. Prime Minister Narasimha Rao referred to this in his Singapore lecture last September. He drew attention to "the many interwoven religious, ethnic, racial, linguistic and professional strands that bind India to the Asia-Pacific. Only a superstructure needed to be erected over the very sound and solid foundation that already exists." One should dwell a little on the economic element of these strands.

The Indian economy is swiftly internationalizing. Tariff barriers are projected to be reduced at the same pace as those in Asean. Foreign investments have taken a quantum leap and a much larger inflow is likely in the coming years. A group of businessmen of the Keidandaren visited India in January and promised to make Japan the largest investor in India by the year 2000.

Meanwhile more changes are needed in the banking and infrastructure areas. Many regulatory mechanisms will need to go. These are now under serious consideration. In 1993, trade between India and Indonesia rose by over 50 percent, even though in overall terms it is still negligible. Other ASEAN states are also making strenuous efforts to make their presence felt in India.

While there is enormous promise and prospects, there are also questions of possible region wide instabilities and uncertainties to take note of, as they could upset economic calculations. One issue is China and the likelihood that its political transition might be difficult. Territorial disputes are also sources of instability. But there are reasons to suggest a more stable environment. First, economic interdependence has enormously enhanced the stake to maintain stability. Second, dialogue and networking have increased substantially between countries and regions.

Here, Track 2 diplomacy has a major role. The India-Indonesia seminar was a step in this direction. But a more structured process is the Council for Security and Cooperation in the Asia- Pacific. As a non-official process that includes policy studies and networking, the council can complement the ASEAN Regional Forum.

India has now become much more involved in the interactive process in Southeast Asia. The emerging challenge is to accelerate this process.

Maj. Gen. Dipankar Banerjee is the Deputy Director of the Institute for Defence Studies and Analyses, New Delhi.