Indonesia, India Mark “Historic Milestone” with Defense, Security and Trade Deals

Indonesia and India signed over a dozen important agreements on critical minerals, agriculture and defense, including a major missile deal on Tuesday, according to the Associated Press. The agreements were reached after Indian Prime Minister Narendra Modi met Indonesian President Prabowo Subianto during his three-day visit to Indonesia, his first trip to the Southeast Asian country since 2023 and the first stop on his 2026 Indo-Pacific tour, according to ABC News.

The two leaders reaffirmed their commitment to strengthening bilateral cooperation, while also paving the way for Indonesia to acquire supersonic cruise missiles in a deal worth about $630 million, according to Reuters. The missiles are manufactured by BrahMos Aerospace Private Limited, a joint venture between India’s Defence Research and Development Organisation (DRDO) and Russia’s NPO Mashinostroyeniya. Indonesia will become the third foreign buyer of the BrahMos missile system, following the Philippines and Vietnam. According to ABC News, the missiles can travel up to three times the speed of sound and could enhance Indonesia’s ability to deter potential maritime threats. These agreements also included enhanced maritime security cooperation between the two nations.

Beyond defense cooperation, India and Indonesia also expanded collaboration in agriculture, critical minerals and steel. The bilateral agreements also included Indonesia’s purchase of 100 tonnes of wheat seeds from India, as well as commitments to share sustainable farming practices and agricultural technologies to support food security and enhance agricultural resilience. They also agreed to strengthen the extraction and processing of rare-earth minerals through more sustainable supply chains and to establish a joint venture for stainless steel slab production in Indonesia, according to Reuters. Additionally, they will accelerate preferential trade agreement talks, with India being a major buyer of Indonesian palm oil and coal. The countries have also decided to strengthen joint research and development in technology, space exploration, and the training of health specialists.

In an address to the Indonesian parliament, Modi said, “Our partnership is not ⁠merely a relationship between two countries; it is a pledge of trust in the stability of the Indo-Pacific, the strength of the Global South and in a shared future of the world.” President Prabowo hailed Modi’s visit as a “historic milestone” in bilateral relations between “two of the world’s largest democracies,” saying it would strengthen the relationship between Jakarta and New Delhi and deliver broader economic and security benefits to the region. Both Indonesia and India are members of the Group of 20 (G20) major economies and the BRICS bloc, according to ABC News, highlighting their increasing relevance on the global stage.

The agreements between Indonesia and India represent a broader effort to strengthen collaboration across defense, trade, food security, critical minerals, and technology amid an evolving Indo-Pacific landscape. While expanded military cooperation may enhance Indonesia’s ability to address security challenges, lasting regional stability will require more than defense partnerships alone. Economic interdependence, sustainable development, and partnerships in areas such as agriculture and resource security can create shared interests that encourage stability. Ultimately, the future success of Indonesia-India relations will depend on balancing security priorities with diplomacy, transparency, confidence-building measures, and adherence to international law.

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