Civilisational Narrative and Soft Power

Modi's Jakarta Address: New IIM Campus, Tech Ties and Soft Power Push

Prime Minister Narendra Modi addressed the Indonesian Parliament on 7 July 2024, unveiling a multi‑pronged partnership that includes an overseas campus of IIM Bangalore, joint research in artificial intelligence, and the integration of India’s Unified Payments Interface (UPI) with Indonesia’s payment system. He framed the India‑Indonesia relationship as “civilisational,” stressing shared history, mutual trust and a common development agenda that extends beyond traditional diplomatic channels.

Modi’s remarks highlighted India’s reliance on cultural affinity and diaspora engagement to project influence abroad. By invoking the “Indian DNA” comment made by President Prabowo Subianto, the Prime Minister underscored a soft‑power strategy that leverages the Indian community in Indonesia to deepen bilateral ties.

• ▸The speech was delivered to the Indonesian Parliament on 7 July 2024.
• ▸Modi described the relationship as “civilisational,” citing centuries‑old trade and cultural links.
• ▸He addressed a gathering of the Indian diaspora in Jakarta, noting their role as “true friends of India.”

The underlying framework is often termed Diaspora Diplomacy, wherein overseas Indians serve as informal ambassadors, fostering goodwill and facilitating trade, education and technology exchanges. This approach dovetails with the Ganga‑Mahakam Vision, a bilateral roadmap that envisions civilisational connect, shared development, security trust, maritime prosperity and a collective voice for the Global South.

Strategic Economic Cooperation

Beyond cultural overtures, the two governments signed agreements to tighten supply chains in critical sectors such as minerals, steel and chip manufacturing. A notable outcome is the plan to link India’s UPI with Indonesia’s national payment platform, promising faster cross‑border transactions for businesses and tourists alike.

• ▸An MoU on critical minerals will enable joint exploration of nickel, cobalt and rare‑earth deposits.
• ▸The steel sector agreement aims to harmonise standards for seamless trade across the Indo‑Pacific.
• ▸UPI integration is slated for a pilot phase by the end of 2024, with full rollout expected in 2025.
• ▸Joint research initiatives will focus on Digital Public Infrastructure and AI‑driven telecom solutions.

These moves reflect a broader shift toward economic self‑reliance, positioning India as a supply‑chain hub for the entire ASEAN region. By securing access to essential inputs, India hopes to reduce dependence on external sources and bolster its manufacturing ecosystem.

Education as a Bridge: IIM Bangalore Overseas Campus

The announcement of an overseas campus of the Indian Institute of Management (IIM) Bangalore marks a historic step in academic collaboration. The campus, to be located in Jakarta, will offer postgraduate programmes in management, finance and technology, targeting students from across ASEAN.

• ▸IIM Bangalore, consistently ranked among the top 10 global business schools, will launch the campus in 2025.
• ▸The campus will initially admit 150 students, with a projected increase to 300 by 2027.
• ▸Scholarships will be funded jointly by the Indian Ministry of Education and the Indonesian Ministry of Higher Education.
• ▸The institute plans to host joint research labs focusing on sustainable business models and digital entrepreneurship.

By exporting its premier management education, India not only creates a pipeline of skilled professionals familiar with Indian business practices but also reinforces its soft‑power narrative in the region. The campus is expected to serve as a catalyst for start‑up ecosystems in both countries, fostering cross‑border innovation.

Geopolitical Implications for ASEAN and the Global South

The convergence of cultural, economic and educational initiatives signals a recalibration of India’s role in Southeast Asia. While traditional security dialogues have dominated Indo‑Indonesian relations, the current agenda places greater emphasis on trade, technology and people‑to‑people contacts.

• ▸ASEAN’s intra‑regional trade reached US$ $2.5 trillion in 2023, underscoring the market potential for Indian firms.
• ▸India’s “self‑reliance” drive, articulated through initiatives like “Make in India,” aligns with Indonesia’s “Indonesia Emas” vision of a golden economy.
• ▸The partnership enhances India’s standing as a voice for the Global South in multilateral forums such as the G20 and the Indian Ocean Rim Association.

Collectively, these developments deepen strategic trust, reduce the risk of external geopolitical competition, and create a resilient network of shared prosperity across the Indo‑Pacific.