India’s Modi Winds Up Visit to Indonesia, Securing Key Defence and Trade Deals

Indonesian President Prabowo Subianto welcomed Indian Prime Minister Narendra Modi on July 6, marking the start of a three‑day state visit to foster relations. (BPMI Setpres/Cahyo)

Indian Prime Minister Narendra Modi concluded a three-day state visit to Indonesia on July 8,  marking his first  bilateral visit since the elevation of ties to a Comprehensive Strategic Partnership (CSP). The visit produced a series of core agreements spanning defence, maritime, technology, healthcare and economic cooperation.

One of the most prominent outcomes was the contract signed between India’s BrahMos Aerospace and the Indonesian Ministry of Defence to supply BrahMos supersonic cruise missiles. Indonesia also became the first purchaser of India’s Astra Beyond-Visual-Range (BVR) air-to-air missiles. Both countries also expanded political engagement through the Joint Commission Meeting (JCM) and Foreign Office Consultation (FOC).

In counter-terrorism and security cooperation, both sides pledged adherence to the United Nations Security Council (UNSC) 1267 Sanctions Committee to fight transnational terrorist networks. They also agreed to apply “anti money laundering and countering financing of terrorism (AML/CFT) standards”. New Delhi and Jakarta also reinforced maritime cooperation between the Indonesian Maritime Security Agency and the Indian Coast Guard to protect vast maritime territories based on the United Nations Convention on the Law of the Sea (UNCLOS) 1982.

Economic discussions featured prominently. Both sides agreed to finalise a bilateral Preferential Trade Agreement (PTA) and updated the existing ASEAN-India Trade in Goods Agreement (AITIGA), including the use of QR instruments to ease cross-border payment. Apart from government-to-government sector agreements, joint ventures between companies, such as Steel Authority of India Limited (SAIL) and Indonesia’s state-enterprise PT Krakatau Steel to access the heavy steel market and the Non-Ferrous Materials Technology Development Centre, Midwest Ltd and PT Perusahaan Mineral Nasional (Perminas) to gain nickel and copper, were also advanced.

With regard to scientific research, agreements between the Indian Space Research Organisation (ISRO) and Indonesia’s National Research and Innovation Agency (BRIN) were also strengthened. President Prabowo and Prime Minister Modi also supported initiatives to collaborate with the Indian Institute of Technology (IIT) as well as agreeing to establish an Indian Institute of Management (IIM).

On the final day, Prime Minister Modi and PresidentPrabowo toured the Prambanan Temple, Central Java, to commemorate shared historical values and cultural symbols of civilisation and reaffirmed commitments under the Indonesia-India Collaborative Cultural Heritage Conservation initiative.

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