Prime Minister Narendra Modi arrived in Jakarta on Monday, marking the start of his three-nation tour, which will also take him to Australia and New Zealand before his return to New Delhi on July 11. During his visit, India seeks to establish a foothold in Indonesia's nickel industry, a sector currently dominated by China. Discussions between Modi and Indonesian President Prabowo Subianto are also expected to include a BrahMos missile deal.
Nickel Industry: A Strategic Focus
Indonesia is the world's largest producer of nickel, a critical mineral for electric vehicle batteries and stainless steel. China currently controls a significant portion of Indonesia's nickel processing and refining capacity, with investments exceeding $15 billion in recent years. India aims to diversify its supply chain and secure access to this vital resource. According to Indian officials, New Delhi is exploring joint ventures and technology partnerships to establish nickel processing plants in Indonesia, reducing reliance on Chinese imports.
BrahMos Missile Deal on the Table
In addition to nickel, the leaders are expected to discuss a potential deal for the BrahMos supersonic cruise missile, a joint venture between India's Defence Research and Development Organisation (DRDO) and Russia's NPO Mashinostroyeniya. Indonesia has expressed interest in acquiring the BrahMos missile system to enhance its maritime security. A senior Indonesian defense official stated, "The BrahMos missile is a game-changer for our naval capabilities, and we look forward to finalizing the agreement during Prime Minister Modi's visit."
Strategic Implications
The visit underscores India's growing engagement with Southeast Asia under its Act East policy. By entering Indonesia's nickel industry, India aims to reduce its dependence on China for critical minerals, which is crucial for its electric vehicle and renewable energy ambitions. According to the Ministry of External Affairs, the two countries are also expected to sign agreements on defense cooperation, trade, and investment. The BrahMos deal, if finalized, would strengthen Indonesia's defense posture and deepen India-Indonesia strategic ties.
Broader Tour Agenda
From Jakarta, Modi will travel to Australia for the Quad summit and then to New Zealand to bolster bilateral ties. The tour is part of India's efforts to expand its influence in the Indo-Pacific region and counter China's growing assertiveness. Analysts view the Indonesia visit as particularly significant given the country's strategic location and resource wealth.
