India and Indonesia's Maritime Cooperation: Sabang Port Advancements

25 Oct, 2023

India and Indonesia's Maritime Cooperation: Sabang Port Advancements

The governments of India and Indonesia have scheduled a series of high-level meetings from November 20-24 to finalize plans for the development of Sabang Port infrastructure in Indonesia's Aceh province. This initiative involves key officials from both countries, including Indonesia's coordinating minister for maritime affairs and investment, Luhut Binsar Pandjaitan, and transportation minister Budi Karya Sumadi, who are expected to visit India for discussions with Indian counterparts, including Minister of Commerce and Industry Piyush Goyal.

These meetings aim to progress the development of Sabang Port infrastructure, following the submission of a joint feasibility study in May 2023. The study serves as a basis for further discussions on the execution of the port development plans. Additionally, India and Indonesia are exploring the potential for new air routes to enhance connectivity between the two nations, including the proposal to link Port Blair in the Andaman Islands with Aceh, Indonesia's westernmost province.

The Indonesian government is currently evaluating the feasibility study, and discussions on investment strategies for the port will be a central topic during the upcoming meetings. Furthermore, discussions on new air routes to improve bilateral air connectivity will be part of the agenda.

It's important to note that queries sent to the Ministry of Shipping and Ministry of Commerce have not been answered at the time of publication.

The successful development of Sabang Port is significant as it would grant India improved access to the Malacca Straits, a critical passage between Indonesia and Malaysia that is one of the world's primary maritime trading routes. This development holds strategic importance, especially in light of China's increasing presence in the Strait of Malacca and the broader Indian Ocean region. The Malacca Strait is a vital link between the Andaman Sea and the South China

Sea, and any route from the Pacific Ocean to the Indian Ocean requires passage through this narrow passage.

During Prime Minister Narendra Modi's 2018 visit to Indonesia, both countries expressed interest in enhancing connectivity between the Andaman Islands and Aceh. They also established a joint task force to work on port-related infrastructure projects in and around Sabang Island, Indonesia.

However, the development of Sabang Port has faced challenges, with no concrete agreements signed and progress moving slowly despite initial statements in 2018. It took over five years to complete the joint feasibility study. Additionally, India is considering investments in another port in West Sumatra, Indonesia.