India, Indonesia Sign Defence and Strategic Agreements

India and Indonesia entered a new phase of bilateral ties on July 7, 2026, during the visit of the Indian Prime Minister to Jakarta. High-level talks with Indonesian President Prabowo Subianto led to nearly a dozen bilateral agreements. These pacts span defence, maritime infrastructure, critical minerals, and digital technology, expanding the 2018 Comprehensive Strategic Partnership.

Defence and Missile Export Agreements

The focal point of the bilateral meet was the formalisation of major military export contracts, making Indonesia a key partner in India’s defence manufacturing footprint in Southeast Asia.

BrahMos Supersonic Cruise Missile Contract

Indonesia signed a commercial contract with BrahMos Aerospace, an Indo-Russian joint venture, to procure the BrahMos supersonic cruise missile system.

• India will supply two batteries of the BrahMos missile system. The package includes the actual missiles, mobile autonomous launchers, and specialized radar and guidance equipment.
• Indonesia is the second ASEAN member state to purchase the BrahMos system, following the Philippines.

Astra Air-to-Air Missile Export

State-run Bharat Dynamics Limited inked a deal with Republikorp, a prominent private defence holding company in Indonesia, to supply the indigenous Astra missile system.

• The Astra is a Beyond-Visual-Range Air-to-Air Missile developed by the Defence Research and Development Organisation.
• This agreement marks the first formal export order for the Astra missile system. The weapon system was selected by Jakarta following its operational evaluation during India’s domestic military exercises.

Maritime Infrastructure and Strategic Connectivity

The two nations advanced localized maritime security and infrastructure cooperation to protect critical sea lines of communication in the Indo-Pacific region.

Sabang Port Joint Development

India and Indonesia finalized operational plans to jointly develop the deep-sea port of Sabang.

• Geographically, Sabang sits at the northern tip of Sumatra, overlooking the entry point of the Strait of Malacca, which is one of the world’s busiest maritime chokepoints.
• The port lies approximately 100 nautical miles from India’s ongoing infrastructure project at Great Nicobar Island, enabling enhanced maritime domain awareness and connectivity.

Operational Maritime Security

The Coast Guard forces of both nations established a framework for joint patrols in the Indian Ocean. To improve institutional intelligence sharing, an Indonesian Military Liaison Officer will be permanently stationed at the Information Fusion Centre – Indian Ocean Region based in Gurugram, India.

Critical Minerals and Industrial Joint Ventures

The agreements addressed supply chain security in materials essential for green technology and advanced manufacturing.

Mineral Extraction and Magnet Production

• Investment Framework: India will invest in Indonesian extraction and processing units for nickel, steel, and bauxite. Indonesia holds roughly 21 percent of verified global nickel reserves.
• Rare-Earth Magnets: The nations formed an industrial partnership to manufacture rare-earth permanent magnets and stainless steel components used in electrical vehicles and telecommunications.
• Steel Production: Steel Authority of India entered a joint venture with PT Krakatau Steel to set up a dedicated stainless steel slab manufacturing facility in Indonesia.

Institutional, Digital, and Electoral Pacts

Beyond security and trade, the bilateral agreements expanded into digital governance, space technology, and higher education.

Electronic Voting Machine Support

The Election Commission of India signed a Memorandum of Understanding with Indonesia’s General Elections Commission. India will provide technical expertise to help Indonesia design and deploy specialized Electronic Voting Machines tailored to Indonesia’s multi-island archipelago voting conditions.

Unified Payments Interface Integration

The two countries agreed to link India’s Unified Payments Interface with Indonesia’s Quick Response Code Indonesian Standard payment network. The linkage allows instant peer-to-peer and merchant transactions using local currencies, cutting costs for travelers and small businesses.

Educational and Cultural Exchanges

• IIM Bangalore Campus: An agreement was signed to establish an international campus of the Indian Institute of Management Bangalore at the Singhasari Special Economic Zone in East Java province.
• Space Research: The Indian Space Research Organisation signed a pact with Indonesia’s National Research and Innovation Agency for peaceful outer space exploration, satellite tracking, and capacity building.
• Heritage Conservation: The Archaeological Survey of India will assist Indonesia in the rehabilitation and structural restoration of the Prambanan Temple complex in Yogyakarta, the largest Hindu temple site in Indonesia.

Key Facts and Historical Milestones

India and Indonesia share a maritime boundary along India’s Andaman and Nicobar Islands and Indonesia’s Aceh province. The Andaman Sea and the 6 Degree Channel serve as immediate geographical contact zones between the two nations. The Astra missile uses terminal active radar homing to strike enemy aircraft at ranges exceeding 100 kilometers. The BrahMos cruise missile operates on a “fire-and-forget” principle, flying at speeds up to Mach 3 to strike targets with high kinetic energy. The Strait of Malacca carries more than one-quarter of all sea-borne trade oil and global commercial container traffic, making the Sabang port development highly strategic for energy transit monitoring.