In talks between Prime Minister Narendra Modi and Indonesian President Joko Widodo, the two countries with impressive growth rates also decided to boost bilateral trade and investment, particularly in areas like oil and gas, pharmaceuticals, IT and skill development.
A joint statement issued after the talks said the two leaders condemned terrorism in all its forms and manifestations in the strongest terms, emphasising "zero tolerance" for acts of terror.
Emphasising on the need to improve connectivity and encourage people-to-people contact, the two leaders also welcome Garuda Indonesia's decision to commence direct flights from Jakarta to Mumbai.
On combating terrorism, the joint statement said Modi and Widodo called upon all countries to implement the UNSC Resolution 1267 and other relevant resolutions designating terrorist entities, in an apparent reference to China blocking India's move to get Jaish-e-Mohammed chief Masood Azhar designated as a global terrorist by the UN.
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Modi and Widodo also underlined the need for all nations to deal with transnational terrorism emanating from their territory by effective criminal justice response while agreeing to extend bilateral cooperation to combating terror, organised crime, drugs and human trafficking, money laundering and arms smuggling.
In his media statement, Modi said the talks focused on the full range of bilateral cooperation and both sides agreed to prioritise defence and security cooperation, besides enhancing efforts to ensure safety and security of the sea lanes.
The Prime Minister said both sides agreed that early implementation of India-ASEAN Free Trade Agreement in Services and Investment, and finalisation of the Regional Comprehensive Economic Partnership would be important steps to further boost trade ties.
"To sustain the momentum of our partnership, President Widodo and I have directed for an early meeting of the existing ministerial-level mechanisms to carry forward the bilateral cooperation agenda," he said.
partner of India in the ASEAN region. Bilateral trade has increased from USD 6.9 billion in 2007-08 to USD 19.03 billion in 2014-15.
In 2015-16, the trade volume fell to USD 9 billion due to global economic situation, fall in commodity prices and less overall imports by Indonesia.
"It is the largest economy in South East Asia. And, India is one of the fastest growing large economies in the world. As two large democracies and major emerging economies, we have shared economic and strategic interests," Modi said.
He said the two countries also decided to ramp up investment in infrastructure and leverage each other's capabilities. In this regard, he said the CEOs' Forum should take the lead in identifying new avenues of wider and deeper industry-to-industry engagement.
Regarding defence and security ties, the two leaders gave a directive for early convening of the Defence Ministers' Dialogue and the Joint Defence Cooperation Committee (JDCC) meetings to review and upgrade the existing 'Agreement on Cooperative Activities in the Fields of Defence' to a substantive bilateral Defence Cooperation Agreement.
On fighting terror, the two leaders called for enhanced cooperation including through greater exchange of information and intelligence between the two sides.
They resolved to significantly enhance bilateral cooperation in combating terror, its financing, money laundering, arms smuggling, trafficking in human beings and cyber crime.
"In this context, they urged all parties to resolve disputes through peaceful means without resorting to threat or use of force and exercise self-restraint in the conduct of activities, and avoid unilateral actions that raise tensions," the joint statement said.
It said the two leaders underscored the importance of pluralism, democracy, and rule of law as key values to achieve peaceful co-existence.
"They welcomed the convergence in the political, economic and strategic interests of the two countries that provides an enduring basis for a long-term strategic partnership," it said.
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After the talks, the two countries signed three pacts to boost cooperation in areas of sports and on standardisation cooperation between Bureau of Indian Standards and the National Standardisation Agency of Indonesia.
A Joint Communique on the Voluntary International Cooperation to Combat Illegal, Unregulated and Unreported (IUU) Fishing and to promote Sustainable Fisheries was also inked.
Modi and Widodo also noted the successful completion of Staff Talks between the armies of the two countries in August and the navies in June last year which have resulted in enhancement of defence cooperation.
"Both sides agreed to increase the frequency of defence exchanges, training and joint exercises, including among special forces.
"They also tasked the two defence ministers to explore collaboration between defence industries for joint production of equipment with technology transfer, technical assistance, and capacity building cooperation," the statement said.
The statement on maritime cooperation encompasses a broad range of fields, including -- maritime security, maritime industry, maritime safety and navigation, and other areas of bilateral cooperation identified by both countries.
Referring to cooperation in fisheries, both the leaders recognised transnational organised fisheries crime as one of the emerging crimes, which has become an ever-growing threat to the world.
"Both leaders agreed to conclude an MoU on Maritime Cooperation between Indonesia and India in order to further strengthen and accelerate maritime cooperation inter alia in maritime safety and security, and promotion of maritime industries, as one of the important pillars towards enhancing the bilateral relationship," it said.