NEW DELHI: In all probability, India is heading for another major defence export deal. According to sources privy to the matter, Indonesia’s defence ministry has sent a letter regarding a $450 million BrahMos deal to the Indian embassy in Jakarta.
Highly placed sources confirmed that India is also offering a loan to Indonesia from either the State Bank of India or any other Indian national banks. The specifics regarding this are being worked out.
As per the sources, the EXIM (Export-Import) Bank was initially scheduled to process the loan to Indonesia. However, this did not materialise.
It is pertinent to note that Indonesia had joined the BRICS, an intergovernmental organisation consisting of 10 countries, on January 6 last year. Indonesia’s entry into the BRICS — which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates — paves the way for Indian Rupee-Indonesian Rupiah transactions.
Complexities
Indications about the BrahMos deal have been given by several senior officials of Indonesia, including the country’s ambassador to India. However, the Indonesian President Prabowo Subianto’s reported visit to Pakistan along with his India visit on Republic Day this year, adds a new dynamic and complexity to this developing strategic calculus.
Reports indicate that New Delhi is trying to dissuade Subiato from clubbing his Republic Day visit with a bilateral visit to Islamabad. Some insiders view that Indonesian President’s clubbed visits could impact the BrahMos deal.
However, if all aspects go according to the existing plan, an announcement could be expected during India’s Republic Day on January 26 this year, in which the Indonesian President is slated to be the chief guest.
It was first reported by this newspaper that the Philippines received the first batch of BrahMos supersonic cruise missiles in April, marking India’s first major defence export deal. India had announced a deal with the Philippines in January 2022 for the supply of the missile.
The Philippines Department of National Defence issued the ‘Notice of Award’ to India’s BrahMos Aerospace Private Limited, approving a $374.96 million (`2,700 crore) contract for the purchase of a shore-based anti-ship missile system from India. Among the deal was three missile batteries, which has a range of 290 kilometres and a speed of 2.8 Mach (thrice the speed of sound).