Prime Minister Narendra Modi arrived in Jakarta on Monday, beginning a three-nation tour that will also take him to Australia and New Zealand before his return to New Delhi on July 11. During his visit, India is seeking a foothold in Indonesia's nickel industry, a sector currently dominated by China. Modi and Indonesian President Prabowo Subianto are also expected to discuss a potential BrahMos missile deal.
Strategic Push into Nickel
India's interest in Indonesia's nickel sector is driven by the metal's critical role in electric vehicle batteries and stainless steel production. Indonesia holds the world's largest nickel reserves, and China has heavily invested in processing facilities there. New Delhi aims to secure a share of this supply chain to reduce dependence on Chinese imports and bolster its own EV manufacturing ambitions.
BrahMos Deal on the Table
According to sources familiar with the matter, Modi and Prabowo will discuss the sale of BrahMos supersonic cruise missiles to Indonesia. The deal, if finalized, would mark a significant defense export for India and strengthen bilateral ties. BrahMos Aerospace, a joint venture between India and Russia, has been seeking to expand its customer base beyond India.
“The BrahMos system has proven its effectiveness, and Indonesia has expressed interest in acquiring it for coastal defense,” said a defense official on condition of anonymity.
Balancing China's Influence
Indonesia has sought to balance its economic ties with China by engaging other partners. India's entry into the nickel sector could provide Jakarta with more leverage in negotiations with Beijing. Analysts note that India’s expertise in processing and technology could complement Indonesia’s raw material资源优势.
“India offers a credible alternative to China in critical mineral supply chains,” said Dr. Ravi Sharma, a geopolitical analyst at the Institute of South Asian Studies. “This aligns with Indonesia’s strategy of diversifying its foreign investments.”
Broader Diplomatic Agenda
Beyond nickel and defense, Modi’s visit will cover areas such as maritime security, digital cooperation, and trade. India and Indonesia are also expected to sign agreements on renewable energy and infrastructure development. The prime minister’s tour reflects India’s increased focus on the Indo-Pacific region, where it seeks to counter China’s growing influence.
Modi will later travel to Australia for the Quad summit and then to New Zealand for bilateral talks. The trip underscores India’s commitment to deepening ties with key partners in the region.
