India and Indonesia signed agreements on boosting defence and strategic ties between the two countries.
The Prime Minister Narendra Modi is currently on a state visit to the Island Nation where on Tuesday the 7th of July 2026 he held talks with President Prabowo Subianto.
India will now supply Brahmos and Astra missiles to Indonesia.
The dozen odd agreements that were reached includes cooperation in a range of areas such as critical minerals, technology, food security, medicines and maritime security.
Indonesia was one of the first countries that showed interest to import India’s air-to-air Astra missiles following the weapon’s success during Operation Sindoor.
The BrahMos missile deal with Indonesia is the third such deal in the region after similar pacts with Vietnam and the Philippines.
Sources said that as of now, the exact number of missiles to be supplied to Indonesia is not immediately known.
Other agreements include with regard to critical mineral supply chain wherein India has now decided to invest in the manufacturing of steel, nickel and rare earth permanent magnets in Indonesia.
“In today’s era, the supply chain resilience of technology holds great significance. An important agreement was reached to further strengthen the supply chain in the sectors of critical minerals and steel,” Modi said.
“A new beginning is being made in partnerships between our companies regarding stainless steel and rare-earth magnets,” he said.
India and Indonesia also agreed to jointly develop the strategically-located Sabang port which overlooks the Strait of Malacca and is 100 miles away from India’s Great Nicobar port project.
“The Comprehensive Strategic Partnership we forged in 2018 is taking a new flight today. We are taking important steps forward in every sector – development, security, technology, culture, and education,” Modi said in his media statement following the talks.
“I am confident that a golden chapter of India-Indonesia partnership begins today,” he said.
The prime minister said growing trust between India and Indonesia is strengthening the bilateral defence, security, and maritime cooperation.
Today, India and Indonesia reached an agreement to enhance defence exchanges, disaster management, and industrial cooperation, he said.
Modi also announced a decision to set up a campus of the Indian Institute of Management-Bangalore in Indonesia.
“We are delighted that India’s UPI is set to integrate with Indonesia’s payment system. This will boost both ease of doing business and ease of travel,” he said.
The two sides also decided to enhance cooperation in areas of blue economy, maritime trade and port development.
The prime minister and the Indonesian president also discussed various global challenges including the situation in West Asia.
“In this era of global turmoil, India believes that the role of dialogue and diplomacy has become more important than ever before,” Modi said.
“On the issue of Palestine, we support the Two-State Solution and long-term peace,” Modi added.
