A Decisive Shift: Thailand and Indonesia Recalibrate Their Ties

Thailand-Indonesia Strategic Alliance

Business APAC

May 19, 2025

So, the long-anticipated deepening of ties between Thailand and Indonesia has finally crystallized. It happened on Monday, May 19th, 2025. This wasn’t just another round of diplomatic pleasantries. When Indonesian President Prabowo Subianto, on his first official visit to Thailand in two decades, met Thai Prime Minister Paetongtarn Shinawatra at Government House in Bangkok, something more substantial was afoot. Forget the intermittent drizzle; the real news was their joint decision to elevate their nations’ relationship to a “strategic partnership.” These are potent words.

 But what do they truly signify beyond the official communiqués? In essence, a shared resolve to get serious about everything from generating greater wealth together to ensuring their common maritime spaces are more secure, and, just possibly, to give the ASEAN bloc a bit more assertiveness on the world stage. This felt less like a photo opportunity and more like the unveiling of an alliance with genuine intent. This marks a pivotal moment in the Thailand-Indonesia Strategic Alliance.

Beyond the Handshakes: What’s Truly Brewing?

We all know the usual script for state visits: flags, formal dinners, and statements so carefully worded they could lull an insomniac to sleep. This meeting, however, carried a different charge. Yes, the honour guard was impeccable, and the nods to 75 years of friendship were sincere and important. But then the conversation turned to real substance. Consider the existing trade relationship, already touching $18 billion, a figure both nations see as merely a starting point.

 Prime Minister Paetongtarn didn’t just speak in vague terms of growth; she announced Thailand is preparing to host their inaugural joint trade committee gathering later this year. That’s where the tough negotiations will unfold. “This decision…reflects our shared commitment to strengthen cooperation…on issues of mutual interest to the people of both countries,” she said. The Thailand-Indonesia Strategic Alliance is being backed by concrete mechanisms, not just rhetoric.

Then listen to President Prabowo. He spoke of attracting Thai investment into Indonesia’s energy sector and floated collaborative ventures in food storage and management. With global food security becoming an urgent challenge, this particular thread could have far-reaching consequences. Increased connectivity is also on the agenda: more direct flights linking Bangkok with Surabaya and Medan, and whispers of AirAsia exploring a Medan-Phuket route. Holidaymakers will cheer, and airlines will be pleased. Such transport initiatives are a hallmark of the evolving Thailand-Indonesia Strategic Alliance.

Security, Stability, and Scams: The Alliance’s Sharper Edge

hen there’s the dimension that makes military planners and police chiefs pay attention. President Prabowo laid it out with clarity: “…enhancing maritime security collaboration, strengthening counterterrorism efforts, bolstering cybersecurity cooperation, increasing joint military exercises and fostering defence industry partnerships.” That’s a formidable checklist. For two maritime anchors of Southeast Asia, a closer working relationship on monitoring waters isn’t just sensible—it’s a strategic imperative under the Thailand-Indonesia Strategic Alliance banner.

The nature of trouble these days? It doesn’t wear a predictable uniform. We’re talking about sophisticated online scams, human trafficking, and narcotics. Prime Minister Paetongtarn was candid about ramping up police collaboration. This focus is timely. Remember those Indonesian citizens extricated from scam operations in Myanmar, via Thailand, a few months ago? That was a tangible success. 

This commitment lends the partnership immediate, ground-level relevance. They even included a new agreement on health cooperation – think joint disease surveillance, perhaps a shared niche in medical tourism. And there was acknowledgement of the Myanmar crisis, with both leaders underscoring ASEAN unity in navigating a path forward.

The Broader Canvas: What Does This Mean for the Region (and Beyond)?

Elevating any bilateral relationship to “strategic” can sometimes be little more than a fresh coat of paint. But the impression in Bangkok today was that this partnership might possess a more robust framework. There’s a concrete list of actions: boosting trade, conducting joint patrols, pursuing cybercriminals, and exchanging health best practices. It’s an ambitious agenda that truly embodies the Thailand-Indonesia Strategic Alliance ethos.

For two of ASEAN’s most significant players, nations with the capacity to steer the bloc, this greater intimacy could not arrive at a more pivotal moment. The world is turbulent, and Southeast Asia has its complexities. Could a solid Thailand-Indonesia Strategic Alliance be a stabilising force? It very well could. The ultimate test will be in outcomes – in commerce growth, a downturn in cross-border crime, and the quiet confidence of knowing your closest neighbour is a true partner in unpredictable times.

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Prithpaal Singh

Business Apac

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