<h4>Introduction to Look East Policy</h4><p>India's <strong>'Look East' Policy</strong>, initiated in <strong>1991</strong>, marked a significant shift in its foreign policy. This policy aimed to strengthen India's engagement with Southeast Asian nations, moving beyond its traditional focus.</p><div class='key-point-box'><p>The primary objective was to foster comprehensive partnerships covering <strong>economic</strong>, <strong>security</strong>, and <strong>cultural cooperation</strong>, leading to substantial growth in trade between India and the region.</p></div><h4>Evolution to Act East Policy</h4><p>The <strong>'Look East' Policy</strong> was further invigorated and upgraded to the <strong>'Act East' Policy</strong> in <strong>2014</strong> by the new government. This evolution signified a more proactive and action-oriented approach towards strengthening ties with the extended neighborhood in the Indo-Pacific.</p><p>Under the <strong>'Act East' Policy</strong>, countries like <strong>Indonesia</strong> have emerged as pivotal regional partners for India, reflecting a deeper strategic alignment and increased bilateral engagement.</p><h4>India-Indonesia Economic Partnership</h4><p>Since the <strong>2000s</strong>, the economic relationship between India and Indonesia has witnessed remarkable growth. <strong>Indonesia</strong> is now India's <strong>second largest trading partner</strong> within the <strong>ASEAN</strong> region.</p><div class='info-box'><p><strong>Key Economic Data:</strong><ul><li><strong>Trade Volume (2005-06):</strong> <strong>USD 4.3 billion</strong></li><li><strong>Trade Volume (2022-23):</strong> <strong>USD 38.84 billion</strong> (a significant increase)</li><li><strong>Indonesian Investments in India:</strong> Approximately <strong>USD 30 billion</strong></li></ul></p></div><p>This substantial increase in trade and investment underscores the robust and expanding economic collaboration between the two nations.</p><h4>Strategic and Security Cooperation</h4><p>Beyond economic ties, India and Indonesia also share common strategic interests, particularly concerning maritime security and regional stability. Both nations have jointly emphasized the importance of resolving <strong>maritime disputes</strong> peacefully.</p><p>They advocate for the finalization of the <strong>South China Sea Code of Conduct</strong> in strict adherence to <strong>international law</strong>, including the <strong>United Nations Convention on the Law of the Sea (UNCLOS)</strong>.</p><div class='exam-tip-box'><p><strong>UPSC Insight:</strong> The joint stance on <strong>South China Sea</strong> disputes highlights India's growing role in regional security architecture and its commitment to a rules-based international order, relevant for <strong>GS-II International Relations</strong>.</p></div><p>In a significant development, <strong>Indonesia</strong> is actively negotiating with India for the acquisition of the advanced <strong>BrahMos missile system</strong>. A broad agreement on pricing, estimated at <strong>USD 450 million</strong>, has been reached, signaling deepening defence cooperation.</p>