Tuesday 21 / July / 2026
Indian Prime Minister Narendra Modi's recent visit to Indonesia has ushered in a new phase in bilateral relations, with both countries signing a series of strategic agreements covering defence, critical minerals and economic cooperation. The visit, part of Modi's six-day tour of Indonesia, New Zealand and Australia from July 6 to 11, reinforced the Comprehensive Strategic Partnership between Asia's two largest democracies.
The visit was Modi's first official trip to Indonesia since 2018 and followed Indonesian President Prabowo Subianto's visit to New Delhi in January 2025 as the chief guest for India's Republic Day celebrations. Modi had previously visited Jakarta in 2023 for the ASEAN Summit.
Speaking alongside President Prabowo, Modi described the relationship as one built on "shared culture, independence and mutual trust," expressing confidence that future cooperation would be driven by shared prosperity. President Prabowo said the visit reflected both nations' commitment to expanding their Comprehensive Strategic Partnership through practical and mutually beneficial initiatives.
Among the most significant outcomes were agreements on defence cooperation and the supply of critical minerals. India will export its BrahMos supersonic cruise missile system and air-to-air missiles to Indonesia under deals worth approximately $630 million, marking one of New Delhi's largest defence exports in Southeast Asia.
The BrahMos missile, jointly developed by India and Russia, is capable of being launched from land, sea, air and submarine platforms and can travel at speeds of up to Mach 3. The acquisition is expected to strengthen Indonesia's maritime defence capabilities, particularly in safeguarding vital sea lanes around the Strait of Malacca and the South China Sea.
The defence agreements come at a time of growing geopolitical competition in the Indo-Pacific, where Indonesia continues to pursue an independent foreign policy while strengthening partnerships with multiple countries. Jakarta has consistently sought to maintain strategic autonomy by balancing relations with major powers, including the United States, China, Russia, Japan, South Korea and India.
Economic cooperation also featured prominently during the visit. India and Indonesia agreed to expand collaboration in the exploration, extraction and processing of critical minerals, including rare earth elements and nickel. The partnership is expected to support India's efforts to diversify supplies of minerals essential for clean energy technologies, electric vehicles and advanced manufacturing, while creating new investment opportunities in Indonesia's resource sector.
Bilateral trade between the two countries reached approximately $28 billion during the 2024-25 fiscal year, reflecting the growing importance of economic ties between the two fast-growing economies.
India and Indonesia share centuries-old cultural links dating back nearly 2,000 years through Hinduism, Buddhism, trade and cultural exchanges. Although the two countries signed a Comprehensive Strategic Partnership in 2018, both governments have acknowledged that there remains significant untapped potential in areas such as maritime security, infrastructure, connectivity and trade.
The strategic importance of the partnership is reinforced by geography, with India's Andaman and Nicobar Islands located close to Indonesia's Aceh Province near the Strait of Malacca, one of the world's busiest maritime trade routes.
During the visit, President Prabowo conferred Indonesia's highest civilian honour, the Bintang Adipurna, on Prime Minister Modi in recognition of his contribution to strengthening bilateral ties. Modi dedicated the award to the people of India, describing it as a symbol of the enduring friendship between the two nations.
The Indonesian Parliament also invited Modi to address the People's Consultative Assembly (MPR), a distinction rarely extended to foreign leaders and previously accorded only to a select few international figures.
The agreements reached during the visit underline the growing convergence between India and Indonesia on regional security, economic resilience and strategic cooperation. As both nations seek to play larger roles in shaping the Indo-Pacific, the strengthened partnership is expected to contribute to greater stability, diversified supply chains and closer defence collaboration in the years ahead.
