India and Indonesia on Tuesday signed key defence agreements, including cooperation on the BrahMos supersonic cruise missile system and ASTRA beyond-visual-range air-to-air missiles, as the two countries agreed to expand collaboration across defence, critical minerals, agriculture, digital connectivity and maritime security.
A joint statement issued after talks between Prime Minister Narendra Modi and Indonesian President Prabowo Subianto said the two leaders reaffirmed their commitment to a free, open, transparent, rules-based, peaceful, prosperous and inclusive Indo-Pacific region.
Highlighting that India and Indonesia are maritime neighbours and strategic partners, the leaders reaffirmed their commitment to strengthening defence and maritime cooperation, recalling the adoption of the “Shared Vision of India-Indonesia on Maritime Cooperation in the Indo-Pacific” in 2018.
The two sides agreed to expand engagement in both traditional and emerging areas of defence cooperation, including regular defence dialogues, joint military exercises, staff talks, joint research and co-production of defence technologies, port calls, peacekeeping operations, information sharing, hydrography, capacity building, cadet exchanges and defence industrial collaboration.
The leaders welcomed the elevation of defence ties through cooperation on the BrahMos missile system and the Air-to-Air Missile Cooperation Agreement covering the ASTRA missile.
They also welcomed the deployment of an Indonesian International Liaison Officer (ILO) at the Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram and agreed to identify additional areas of cooperation in maritime security.
Identifying defence industry and technology as priority sectors, the two countries agreed to promote joint production of defence equipment, technology transfer, technical assistance, capacity building, sourcing of defence platforms, cooperation in shipbuilding, establishment of maintenance, repair and overhaul (MRO) facilities, exploration of defence research and development partnerships, and strengthening of defence supply chains.
The leaders also welcomed progress in pharmaceutical cooperation between the armed forces’ medical establishments of both countries, particularly in the supply of military medicines.
Economic and trade cooperation remained a key focus of the discussions, with both leaders highlighting the complementarities between India’s Viksit Bharat 2047 vision and Indonesia’s Indonesia Emas 2045 agenda.
The two leaders underscored the importance of strengthening collaboration in critical minerals and rare earths to build diversified and resilient supply chains that support domestic manufacturing and enhance economic security.
They welcomed the signing of a Memorandum of Understanding on cooperation in minerals and steel supply chain technology, as well as a strategic joint venture between the Steel Authority of India Ltd. (SAIL) and PT Krakatau Steel to explore the establishment of a stainless-steel slab manufacturing facility in Indonesia.
Both sides also welcomed progress towards operationalising Local Currency Transactions (LCT) guidelines between the Reserve Bank of India and Bank Indonesia, saying the initiative would promote bilateral trade and investment while deepening financial integration.
The leaders agreed to expand cooperation in food security, nutrition and agriculture, while respecting each country’s domestic policies. They welcomed efforts to enhance collaboration in agricultural trade, joint studies, innovation and knowledge sharing to support sustainable and resilient food systems.
They also expressed hope for the early conclusion of a Memorandum of Understanding on agriculture and allied sectors, along with the renewal of the MoU on marine and fisheries cooperation.
In the healthcare sector, the leaders welcomed ongoing collaboration in pharmaceuticals and medical products, including the signing of an MoU between India’s Central Drugs Standard Control Organisation (CDSCO) and Indonesia’s National Agency of Drug and Food Control (BPOM) on medical products regulation.
The two countries also agreed to strengthen cooperation in the fertiliser sector to ensure stable, affordable and reliable supplies amid evolving global market conditions.
Emphasising the importance of enhanced maritime and air connectivity, the leaders encouraged greater air links and port-to-port connectivity between the two countries.
President Prabowo welcomed India’s interest in partnering in the integrated development of Sabang Port. The two leaders noted that cooperation in cruise and marine tourism, shipbuilding and repair, maritime industries and offshore energy support services in the Andaman Sea could strengthen connectivity between India’s Andaman and Nicobar Islands and Indonesia’s Sumatra region while generating investment, employment, technology transfer and regional economic growth.
Prime Minister Modi and President Prabowo directed their respective authorities to finalise the scope, implementation modalities and financing of the Sabang Port project in a time-bound and mutually beneficial manner, in line with Indonesia’s development priorities.
The leaders also welcomed the launch of the Indonesia Open Network (ION), based on India’s Open Network for Digital Commerce (ONDC) architecture, to increase the participation of Indonesian micro, small and medium enterprises (MSMEs) in the digital economy.
They welcomed progress in implementing the India-Indonesia Cross-Border QR Payment Linkage between the Reserve Bank of India and Bank Indonesia, describing it as a major step towards strengthening bilateral payment connectivity. The initiative is expected to improve transaction efficiency, enhance financial resilience and support MSMEs, tourism and student mobility.
The two sides also welcomed the conclusion of a Memorandum of Understanding on cooperation in telecommunications technologies and services, aimed at strengthening digital connectivity and supporting inclusive economic growth and digital transformation.
(With ANI inputs)
