Prime Minister Narendra Modi and Indonesian President Prabowo Subianto witness the exchange of MoUs between the two countries following delegation-level talks at the Istana Merdeka in Jakarta, Indonesia, July 7, 2026. (Photo | PTI)
India

India, Indonesia expand ties during Modi's visit with BrahMos, Astra deals and critical minerals pact

A key economic outcome was an agreement to deepen cooperation on critical minerals, with India set to invest in Indonesia's steel, nickel and rare earth magnet manufacturing ecosystem.

Jayanth Jacob

NEW DELHI: India and Indonesia on Tuesday expanded their strategic partnership, with Jakarta agreeing to procure BrahMos supersonic cruise missiles and Astra air-to-air missiles, as the two countries unveiled an ambitious roadmap covering defence, maritime security, critical minerals, technology, digital connectivity and supply chains.

The agreements were announced after talks between Prime Minister Narendra Modi and Indonesian President Prabowo Subianto at the Merdeka Palace in Jakarta during the first leg of Modi's three-nation Indo-Pacific tour, which will also take him to Australia and New Zealand.

The defence agreements mark another milestone in India's efforts to emerge as a major exporter of indigenous military hardware, with Indonesia becoming the latest country to acquire the BrahMos missile system in a deal worth about $200 million.

A BrahMos battery typically comprises four launchers and 12 ready-to-fire missiles, along with command-and-control systems, support equipment and specialised vehicles, though configurations vary depending on whether the system is deployed for land attack or coastal defence.

With the Indonesia agreement, India is now set to export the BrahMos missile system to three countries, after the Philippines and Vietnam, underscoring the growing international acceptance of one of India's flagship defence exports.

The defence agreements also envisage wider collaboration in defence manufacturing and technology transfers, reflecting a shift from a buyer-seller relationship towards long-term industrial cooperation.

Sources said Jakarta has also decided to procure India's Astra beyond-visual-range air-to-air missiles following their operational performance during Operation Sindoor.

'Golden chapter of India-Indonesia partnership begins'

Addressing a joint media interaction, PM Modi described the outcomes as a new phase in bilateral ties.

"The Comprehensive Strategic Partnership we forged in 2018 is taking a new flight today. We are taking important steps forward in every sector — development, security, technology, culture and education," Modi said.

"I am confident that a golden chapter of India-Indonesia partnership begins today," he added.

Highlighting the growing strategic convergence between the two maritime neighbours, Modi said, "The growing trust between our two countries has strengthened cooperation in defence, security and the maritime domain. Today, India and Indonesia reached an agreement to enhance defence exchanges, disaster management and industrial cooperation."

He added that the coast guard agencies of both countries would work together in the Indian Ocean to strengthen maritime safety and security.

Both leaders also reaffirmed their commitment to a free, open and rules-based Indo-Pacific. "There is strong synergy in our respective outlooks on the Indo-Pacific. India has always attached special importance to ASEAN centrality," Modi said.

Meanwhile, President Prabowo echoed the sentiment, saying both countries sought "an Indo-Pacific region that is open and transparent, with an order-based international law."

Pact includes critical minerals, EVM and UPI

The two sides signed nearly a dozen agreements covering critical minerals, agriculture, healthcare, telecommunications, disaster management, research and innovation and space cooperation.

Both sides also signed an MoU focusing on cooperation in election technology, human resource development, capacity building and the exchange of best poll practices, including the export of customised EVMs.

A key economic outcome was an agreement to deepen cooperation on critical minerals, with India set to invest in Indonesia's steel, nickel and rare earth magnet manufacturing ecosystem as New Delhi looks to diversify supply chains for strategic minerals essential for clean energy technologies and advanced manufacturing.

The two countries also agreed to jointly develop the strategically located Sabang port, overlooking the Strait of Malacca, a key global shipping corridor, and located about 100 miles from India's Great Nicobar port project. They further resolved to step up cooperation in the blue economy, maritime trade and port development.

The Indian Institute of Management Bangalore will establish a campus in Indonesia, while India's Unified Payments Interface (UPI) will be integrated with Indonesia's payment system to facilitate cross-border transactions.

"We are delighted that India's UPI is set to integrate with Indonesia's payment system. This will boost both ease of doing business and ease of travel," Modi said.

The leaders also exchanged views on regional and global developments, including the situation in West Asia.

"In this period of global turbulence, India believes that the role of dialogue and diplomacy has become more important than ever before. On the issue of Palestine, we continue to support a Two-State Solution and the pursuit of lasting peace," Modi said.

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