Sabang Port Deal between India and Indonesia
Visiting Indonesian President Prabowo told PM Modi that he would welcome Indian private companies to participate in Sabang and other Indonesian ports.
Indonesia is now inching closer to its relationship with India regarding the development of Sabang Port after the joint feasibility study was completed in 2023 itself. This strategic port, located near the Malacca Strait, is seen as vital for enhancing India-Indonesia bilateral trade and military cooperation.
2024 was Election year both in India and Indonesia. Also there was some concer about China’s potential reaction. So things moved very slowly.
Now with both Prabowo and Modi firmly in saddle India and Indonesia have once again engaged in discussions about developing the Sabang Port.
The port is expected to facilitate short-sea shipping in the Bay of Bengal and strengthen economic ties between the two countries, potentially boosting bilateral trade to INR 425000 crore by end of 2025.
The Adani Group has shown interest in investing in this project, which is estimated to cost over INR 8500 crores. However, progress has been slow till now due to attacks on Adani Group by despicable Hindenburg Group and also its supporters in India. Hindenburg has now shut its shop but its Indian supporters may be looking for fresh munition.
China has expressed its baseless “apprehension “ regarding India’s involvement at Sabang Port, interpreting it as a potential military foothold that could threaten its maritime interests in the region. With Andaman & Nicobar as unsinkable aircraft carriers, India does not need Sabang as a military base just 450 km away.
Therefore the Chinese media warnings on military cooperation between India and Indonesia could provoke countermeasures from Beijing, is likely to be disregarded totally. India’s growing influence in Southeast Asia is a fact of life.
This has been accepted by Indonesia and now it seeks to enhance ties with India through purchase of BRAHMOS missiles, surely a red rag to PLAN’ incursions into Natuna Sea.
Though Indonesia must also manage its trade relationship with China, which is a significant investor in Indonesian infrastructure and a founding member of BRICS like India. Indonesia the 8th largest Economy of the World by PPP has become the latest full member of BRICS
During a recent visit by Indonesian President Prabowo Subianto to India, both nations reaffirmed their commitment to enhancing cooperation across various sectors, including defence and trade.
They discussed the importance of maintaining a rules-based order in the Indo-Pacific region amidst rising tensions related to China’s assertiveness. The discussions included maritime security collaborations and the diversification of trade, indicating a shared interest in strengthening their partnership while being mindful of regional dynamics.
