India and Indonesia have unveiled an ambitious roadmap to deepen economic engagement, expand cooperation in critical minerals and steel, strengthen connectivity, and accelerate digital and financial integration, as part of the joint statement issued during Prime Minister Narendra Modi’s State Visit to Indonesia from July 6-8.
Describing economic and trade cooperation as a key pillar of the Comprehensive Strategic Partnership, Prime Minister Narendra Modi and Indonesian President Prabowo Subianto highlighted the strong complementarities between India’s vision of “Viksit Bharat 2047” and Indonesia’s “Indonesia Emas 2045”. They said deeper economic integration between the two countries would unlock greater trade and investment opportunities.
To facilitate this, the two leaders expressed hope for the timely conclusion of the review of the ASEAN-India Trade in Goods Agreement (AITIGA), aimed at creating a balanced, mutually beneficial and facilitative trade environment, followed by broader bilateral trade engagement to further boost commerce.
The leaders also emphasised the need to fully utilise and strengthen existing bilateral economic mechanisms. They welcomed the planned convening in 2026 of the second Working Group on Trade and Investment (WGTI), the fourth Biennial Trade Ministers’ Forum (BTMF), and the inaugural Joint Economic and Financial Dialogue (EFD). These mechanisms, they said, should deliver concrete business-oriented outcomes by addressing tariff and non-tariff barriers, improving market access, facilitating trade and investment, and expanding cooperation in finance, the digital economy, industry and resilient supply chains, while respecting each country’s domestic regulations and development priorities.
Critical minerals and rare earths emerged as another major area of cooperation. The two leaders underlined the importance of building diversified and resilient supply chains to support domestic manufacturing, reduce vulnerabilities and strengthen economic security. They welcomed growing collaboration in rare earths and hailed the signing of a Memorandum of Understanding between the Non-Ferrous Materials Technology Development Centre (NFTDC), Midwest Ltds. and Indonesia’s PT Perusahaan Mineral Nasional (PERMINAS).
The leaders also welcomed the signing of a Memorandum of Understanding on cooperation in minerals and steel supply chain technologies. In addition, they hailed the Strategic Joint Venture between the Steel Authority of India Limited (SAIL) and PT Krakatau Steel to explore the establishment of a stainless-steel slab manufacturing facility in Indonesia.
In the financial sector, both sides welcomed progress towards operationalising guidelines on Local Currency Transactions (LCT) between the Reserve Bank of India and Bank Indonesia, saying the initiative would promote bilateral trade and investment while deepening financial integration between the two economies.
On infrastructure and connectivity, the leaders stressed the importance of enhancing maritime and air links between the two countries. They encouraged greater air connectivity and port-to-port connections and looked forward to the third Joint Task Force Meeting on Andaman-Aceh Connectivity, scheduled for the second half of 2026, with the aim of implementing a time-bound action plan.
President Prabowo welcomed India’s interest in partnering on the integrated development of Sabang Port. The two leaders recognised that cooperation covering cruise and marine tourism facilities, shipbuilding and ship-repair industries, and shore-based services supporting offshore energy activities in the Andaman Sea would improve institutional, physical and digital connectivity, while facilitating the movement of people and goods between India’s Andaman and Nicobar Islands and Indonesia’s Sumatra provinces. They noted that the partnership could generate investment, employment, technology transfer and shared regional prosperity, and directed the concerned authorities to finalise the project’s scope, financing and implementation modalities in a mutually beneficial and time-bound manner.
Digital cooperation also received a significant push. The leaders welcomed the launch of the Indonesia Open Network (ION), developed on the architecture of India’s Open Network for Digital Commerce (ONDC), with the objective of increasing the participation of Indonesian micro, small and medium enterprises (MSMEs) in the digital economy through open digital networks.
They also welcomed progress towards implementing the Cross-Border QR Payment Linkage between the Reserve Bank of India and Bank Indonesia. The initiative, they noted, marks a major milestone in bilateral payment connectivity and is expected to improve transaction efficiency, strengthen financial resilience and promote inclusive economic growth by benefiting MSMEs, tourism and students.
Further advancing digital collaboration, the two countries welcomed the conclusion of a Memorandum of Understanding on Cooperation in Telecommunications Technologies and Services, which is expected to strengthen cooperation in telecommunications technologies and digital connectivity while supporting inclusive economic growth and digital transformation.
