Defence Pacts Signed
India and Indonesia on Tuesday signed significant agreements, including for the supply of BrahMos supersonic cruise missiles and ASTRA beyond-visual-range air-to-air missiles, reaffirming their commitment to a free, open, transparent, rules-based, peaceful, prosperous and inclusive Indo-Pacific region.
Strategic Partnership Strengthened
A joint statement released after talks between Prime Minister Narendra Modi and Indonesian President Prabowo Subianto highlighted that economic and trade cooperation remains a key pillar of the dynamic ties. The leaders acknowledged vast economic and developmental synergies between India's vision of 'Viksit Bharat 2047' and 'Indonesia Emas 2045'.
Recognizing that India and Indonesia are maritime neighbours and strategic partners with robust defence cooperation, and recalling the adoption of the "Shared Vision of India-Indonesia on Maritime Cooperation in the Indo-Pacific" in 2018, both leaders reaffirmed their strong commitment to further enhance and broaden the defence and maritime partnership.
Defence Industry Collaboration
Both leaders agreed to strengthen cooperation in traditional and emerging areas of defence, including regular defence dialogue, joint exercises, staff talks, joint research and co-production of new defence technologies, port calls, peacekeeping, information sharing, hydrography, capacity building, cadet training, and defence industrial cooperation. They welcomed the elevation of defence cooperation through the BrahMos Missile System and the Air-to-Air Missile Cooperation Agreement.
They also welcomed the positioning of an International Liaison Officer (ILO) from Indonesia at the Information Fusion Centre-Indian Ocean region (IFC-IOR) in Gurugram and agreed to continue discussions on maritime security cooperation.
Critical Minerals and Steel
The leaders underscored the importance of strengthening collaboration in critical minerals and rare earths, focusing on building diversified and resilient supply chains essential for domestic manufacturing industries. They welcomed the signing of an MoU on cooperation in minerals and technology of steel supply chain, and a strategic joint venture between Steel Authority of India Ltd. (SAIL) and PT. Krakatau Steel to explore establishing a stainless-steel slab manufacturing facility in Indonesia.
Economic and Financial Integration
Both leaders welcomed progress towards operationalising guidelines on Local Currency Transaction (LCT) between the Reserve Bank of India and Bank Indonesia, which would promote trade and investment and deepen financial integration. They also welcomed progress on the Cross-Border QR Payment Linkage, enhancing transaction efficiency, financial resilience, and inclusive growth for MSMEs, tourism, and students.
Agriculture and Food Security
The leaders agreed to deepen cooperation in food security and nutrition, respecting domestic policies. They welcomed efforts to enhance agriculture and food security through trade, joint studies, innovation, and knowledge sharing. They looked forward to the early conclusion of an MoU on agriculture and allied sectors, and renewal of an MoU on marine and fisheries cooperation.
Pharmaceuticals and Fertilizers
They welcomed ongoing collaboration in pharmaceuticals and medical products, including an MoU between CDSCO and BPOM on medical products regulation. They also agreed to strengthen cooperation in the fertilizer sector, ensuring stable, affordable and reliable availability amid global market conditions.
Connectivity and Sabang Port
Both leaders emphasised enhanced maritime and air connectivity, encouraging greater air connectivity and port-to-port connections. President Prabowo welcomed India's interest in partnering on the integrated development of Sabang Port, spanning cruise and marine-tourism facilities, ship-repair, shipbuilding, and shore-based services supporting offshore energy activities in the Andaman Sea. This partnership would foster institutional, physical, digital connectivity and flow of people and commodities between the Andaman and Nicobar Islands and Sumatra Island provinces.
Digital Economy
Both leaders welcomed the launch of Indonesia Open Network (ION), based on India's Open Network for Digital Commerce (ONDC) architecture, to increase participation of Indonesian MSMEs in the digital economy. They also welcomed the conclusion of an MoU on telecommunications technologies and services.
