Indonesia, India sign agriculture, critical minerals and missile deals

JAKARTA: Indonesia and India on Tuesday signed a raft of deals on critical minerals, agriculture and defence, including for the BrahMos cruise missile system, the Indonesian presidential palace said.

Indian Prime Minister Narendra Modi met President Prabowo Subianto as part of a visit to Indonesia, his first trip to the Southeast Asian country since 2023, and the pair reaffirmed their regional commitments.

“We’re two of the largest democracies in the world,” Prabowo said. “Partnerships between us will bring benefits to the region.”

BrahMos, an India-Russia joint venture missile manufacturer, and Indonesia’s defence ministry signed a contract for the BrahMos missile defense system, according to an announcement by the Indonesian palace in Jakarta, which provided no details.

Reuters reported earlier on Tuesday that India will supply the BrahMos cruise missile system and the Astra air-to-air missile to Indonesia, citing an Indian government official.

Indian sources earlier told Reuters that the deal was worth around $630 million.

Indonesia to buy BrahMos missiles, Indian govt official says

In 2023, BrahMos said it was in advanced discussions with Indonesia on a deal worth between $200 million and $350 million for its missile systems. It has already signed deals with neighbours Vietnam and the Philippines.

Separately, Indonesia’s Republikorp, a defence private holding company, and India-based defence company Bharat Dynamics signed an agreement on air-to-air missiles, the palace announced.

Trade ties

The countries also signed memorandums of understanding for strengthening supply chains in critical minerals and steel, as well as agriculture.

Steel Authority of India and Indonesia’s Krakatau steel will also establish a joint venture for stainless steel slab making in Indonesia.

Indian Air Force conducts long-range BrahMos cruise missile test

India and Indonesia will accelerate preferential trade agreement talks, Prabowo said. India is a major buyer of palm oil and coal from Indonesia, a global commodities powerhouse.

Modi said the two countries will work on promoting maritime safety and security in the Indian Ocean.

“Our partnership is not merely a relationship between two countries, 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,” Modi said in an address to the Indonesian parliament.

Neither leader mentioned the BrahMos deal in their remarks.

Modi will be in the Indonesian city of Yogyakarta on Wednesday, where he said he would visit Prambanan, Indonesia’s largest Hindu temple complex and a UNESCO World Heritage site. Prabowo met Modi in New Delhi last year, where they signed a wide range of agreements.

Modi is set to leave for Australia and New Zealand on Wednesday.