India and Indonesia have announced substantial defence agreements, which include the supply of BrahMos supersonic cruise missiles and Astra air-to-air missiles. The agreements were signed following discussions between Prime Minister Narendra Modi and President Prabowo Subianto aimed at fortifying bilateral relations and ensuring stability in the Indo-Pacific region.

The discussions culminated in the endorsement of fourteen pacts that encompass various sectors such as critical minerals, steel supply chains, and maritime security. In a statement following the talks, Modi expressed optimism for the future, saying, “A golden era is now at the threshold for our two nations.”

PM Modi’s visit to Jakarta in July marks the beginning of a three-nation tour that will similarly take him to Australia and New Zealand, with a focus on enhancing cooperation in trade, security, and rare-earth minerals under the established Comprehensive Strategic Partnership of 2018.

Details of the Agreements

The agreements signed include details regarding the sale of an unspecified number of BrahMos missiles and Astra missiles, worth over $600 million. This announcement is particularly notable as it represents perhaps the first occasion when two Indian defence exports have been revealed in the presence of the prime minister. These missile systems played pivotal roles during Operation Sindoor last year, showcasing their strategic importance.

This recent Defence agreement follows similar contracts signed between India and other Southeast Asian nations, including Vietnam and the Philippines. The timing of the missile deals, along with a commitment to enhance maritime safety and security, highlights the ongoing concerns regarding China’s intensified military activities in the resource-abundant South China Sea.

During the discussions, President Subianto underscored the necessity for an open and law-respecting Indo-Pacific region. Modi reiterated India’s commitment to ASEAN centrality, reflecting a shared understanding between the two leaders regarding regional stability and security.

Broader Aspects of Bilateral Cooperation

India and Indonesia also agreed that a Liaison Officer from Indonesia would be stationed at India’s Integrated Fusion Centre in the Indian Ocean Region, demonstrating an increasing trust and collaboration in defence, security, and maritime affairs. Modi remarked that enhancing collaborative efforts in defence exchanges and disaster management would be a focus area moving forward.

Additionally, both nations resolved to develop Sabang Port, strategically located near the Strait of Malacca, as well as to deepen cooperation in blue economy initiatives and maritime trade. Modi also announced plans for India to invest in the manufacturing of steel, nickel, and rare earth permanent magnets in Indonesia.

The integration of India’s Unified Payments Interface with Indonesia’s payment system is expected to facilitate smoother business transactions and travel between the two countries. Modi stated that the Comprehensive Strategic Partnership is evolving, bringing substantial advancements across multiple fields including development, security, and education.

The two also discussed plans to establish a campus of IIM Bangalore in Indonesia and agreed to expand collaboration in the space sector, focusing on joint research, technology sharing, and capacity building. Overall, the discussions yielded a comprehensive agreement that spans diverse sectors, highlighting the growing partnership between India and Indonesia.

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