Indonesia and India significantly expanded their strategic partnership Tuesday by signing a series of agreements covering defense, critical minerals, agriculture, steel production and trade, including a contract for the BrahMos cruise missile system, as Prime Minister Narendra Modi and President Prabowo Subianto reaffirmed their commitment to closer cooperation across the Indo-Pacific.
The agreements were concluded during Modi’s official visit to Jakarta, his first trip to Indonesia since 2023, reflecting the growing importance both countries place on strengthening economic and security ties amid evolving geopolitical dynamics in the region.
“We’re two of the largest democracies in the world,” Prabowo said following talks with the Indian leader. “Partnerships between us will bring benefits to the region.”
The most significant defense agreement announced by Indonesia’s Presidential Palace was a contract between BrahMos Aerospace, the India-Russia joint venture that manufactures the supersonic cruise missile, and Indonesia’s Ministry of Defense for the BrahMos missile system.
The palace did not disclose financial terms, delivery schedules or technical specifications of the agreement.
Earlier Tuesday, Reuters reported that India would supply Indonesia with the BrahMos cruise missile system as well as the Astra beyond-visual-range air-to-air missile, citing an Indian government official familiar with the negotiations.
Indian sources had previously told Reuters the overall defense package was expected to be worth approximately $630 million, making it one of India’s largest defense export agreements in Southeast Asia.
The agreement represents another milestone in India’s efforts to expand defense exports while strengthening security partnerships throughout the Indo-Pacific.
BrahMos Aerospace had previously disclosed in 2023 that it was engaged in advanced negotiations with Indonesia over a missile package valued between $200 million and $350 million. The company has already secured export agreements with both Vietnam and the Philippines, positioning the BrahMos missile as one of India’s most successful defense exports.
In addition to the government-to-government defense contract, Indonesia’s private defense holding company Republikorp signed a separate agreement with India’s Bharat Dynamics covering cooperation on air-to-air missile systems, according to the Presidential Palace.
While officials did not release further details, the agreement is expected to support Indonesia’s broader efforts to modernize its air defense capabilities through expanded industrial cooperation with India’s growing defense sector.
Defense cooperation formed only one part of a much broader package of agreements signed during Modi’s visit.
The two governments concluded memorandums of understanding aimed at strengthening cooperation in critical minerals, steel production and agriculture, sectors increasingly viewed as essential to economic resilience and industrial development.
One of the most significant industrial agreements involved India’s Steel Authority of India and Indonesia’s state-owned steel producer Krakatau Steel.
The companies agreed to establish a joint venture that will manufacture stainless steel slabs in Indonesia, supporting Jakarta’s ambitions to expand domestic downstream processing while strengthening industrial supply chains between the two countries.
Critical minerals also featured prominently in the discussions as governments around the world compete to secure supplies of strategic resources used in electric vehicles, renewable energy technologies and advanced manufacturing.
The new agreements are expected to enhance cooperation in developing more resilient supply chains for critical minerals while encouraging greater investment and industrial collaboration.
Trade also remained a central focus of the leaders’ meeting.
Prabowo said Indonesia and India would accelerate negotiations toward a preferential trade agreement designed to increase bilateral commerce and reduce barriers between the two rapidly growing economies.
India already ranks among Indonesia’s most important trading partners, importing substantial quantities of Indonesian palm oil and coal while expanding commercial ties across a broad range of commodities and manufactured goods.
Modi emphasized that bilateral cooperation extended beyond economics to include shared responsibilities for maintaining regional stability.
The Indian prime minister said both countries would continue working together to strengthen maritime safety and security throughout the Indian Ocean, one of the world’s most strategically important shipping corridors.
“Our partnership is not merely a relationship between two countries,” Modi told Indonesia’s Parliament. “It is a pledge of trust in the stability in the Indo-Pacific, strength of the Global South and in a shared future of the world.”
Despite the significance of the defense agreements, neither Modi nor Prabowo specifically mentioned the BrahMos missile contract during their public remarks following the bilateral meeting.
The omission contrasted with the Indonesian Presidential Palace’s formal announcement confirming the contract had been signed, suggesting the leaders sought to emphasize the broader strategic relationship rather than focus exclusively on defense cooperation.
The visit builds on momentum established during Prabowo’s trip to New Delhi last year, when the two leaders signed a wide-ranging package of agreements covering political, economic and security cooperation.
Since then, both governments have increasingly portrayed their relationship as an important pillar of regional stability, particularly as competition among major powers continues to reshape the Indo-Pacific security environment.
Following the conclusion of official meetings in Jakarta, Modi is scheduled to travel Wednesday to Yogyakarta, where he plans to visit Prambanan, Indonesia’s largest Hindu temple complex and a UNESCO World Heritage Site.
The visit carries symbolic significance, highlighting centuries-old cultural and civilizational links between India and Indonesia that continue to complement their expanding contemporary partnership.
Modi will conclude his visit to Indonesia on Wednesday before departing for Australia and New Zealand as part of a broader regional tour aimed at reinforcing India’s “Act East” policy and strengthening engagement with key partners across the Indo-Pacific.
The agreements signed in Jakarta underscore the increasingly comprehensive nature of Indonesia-India relations, which now span defense, industrial development, critical supply chains, trade, agriculture and maritime security. As both countries seek to play larger roles in shaping the future of the Indo-Pacific, Tuesday’s accords represent another step toward a strategic partnership that extends well beyond traditional diplomatic cooperation.
