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India, Indonesia Set to Expand Defence and Economic Ties During PM Modi's Visit

Published on: 07 Jul 2026, 05:02 AM
India, Indonesia Set to Expand Defence and Economic Ties During PM Modi's Visit

During Prime Minister Narendra Modi's ongoing visit to Indonesia, India and Jakarta are expected to sign several strategic, defence and economic agreements, according to sources familiar with the matter. The pacts are anticipated to cover missile systems, critical minerals, and maritime infrastructure.

PM Modi arrived in Jakarta and received a ceremonial welcome at the Istana Merdeka presidential palace. Among the key developments, sources indicated that Indonesia may import India's indigenous Astra air-to-air missiles, following the demonstrated success of the missile capabilities during Operation Sindoor. Additionally, Jakarta intends to expand its inventory of BrahMos missiles, and India is expected to supply additional BrahMos missile batteries to support this expansion.

Defence cooperation has become a central pillar of India-Indonesia bilateral ties, with joint military exercises and defence collaboration strengthening security relations over recent years. Indonesia has previously acquired India's BrahMos supersonic cruise missiles.

On the economic front, India plans to invest in the manufacturing of steel, nickel, and rare earth permanent magnets in Indonesia, aiming to bolster the critical mineral supply chain. In another significant move, New Delhi is reportedly planning to assist in developing Indonesia-specific electronic voting machines (EVMs), reflecting an endorsement of India's election management model and growing institutional cooperation.

Furthermore, India and Indonesia are set to jointly develop the Sabang port, located near the Strait of Malacca and about 100 miles from India's Great Nicobar port project.

The Indian Ministry of External Affairs stated on X that PM Modi's visit marks a significant step in advancing the India-Indonesia Comprehensive Strategic Partnership, opening new avenues for cooperation across priority sectors while reinforcing trust, shared values, and enduring friendship.

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