India-Indonesia Relations: Key Outcomes and Agreements

Defence and Maritime Security Cooperation

During talks between Prime Minister Narendra Modi and President Prabowo Subianto, India and Indonesia announced significant outcomes, including a deal over $600 million for Indonesia to procure BrahMos cruise missiles and Astra air-to-air missiles from India.

• Both nations agreed to increase cooperation between their coast guards to ensure maritime safety and security in the Indian Ocean.
• Indonesia will station its international liaison officer at the Information Fusion Centre – Indian Ocean Region (IFC-IOR) established by India.

Development Projects and Economic Cooperation

The two sides agreed to revive the stalled plan to jointly develop Indonesia’s Sabang Port, enhancing connectivity with India’s Nicobar Islands.

• Signed agreements to strengthen cooperation in critical minerals and rare-earth magnets.
• A joint venture between SAIL and PT Krakatau Steel to explore the establishment of a stainless-steel slab manufacturing facility in Indonesia.
• Operational guidelines on local currency transactions (LCT) between the Reserve Bank of India (RBI) and Bank Indonesia.
• Integration of India's Unified Payments Interface (UPI) with Indonesia’s payment system.
• The Indian Institute of Management (IIM), Bangalore, will set up a branch campus at Indonesia’s Singhaseri SEZ.

Cultural and Educational Initiatives

These initiatives focus on strengthening cultural ties and educational exchange:

• The Archaeological Survey of India (ASI) will assist in restoring Yogyakarta’s Prambanan Temple Complex.
• India will supply 100 tonnes of high-quality DWR 162 wheat seeds to Indonesia.
• Election Commission of India (ECI) will assist Indonesia in developing electronic voting machines specific to their needs.

Strategic and Diplomatic Efforts

The discussions highlighted India's strategic vision and diplomatic efforts for regional stability:

• Modi underlined India’s MAHASAGAR vision for a free, open, and inclusive Indo-Pacific with respect for freedom of navigation.
• Discussed increasing cooperation through the trilateral mechanism of India-Indonesia-Australia.
• Modi was awarded the "Bintang Adipurna of the Republic of Indonesia," Indonesia’s highest civilian honour.

Geopolitical Context

Modi’s visit comes amid rising Chinese assertiveness, with China's recent nuclear submarine-fired ballistic missile test in the Pacific drawing criticism from Australia and caution from New Zealand and the Philippines.