India's PM Modi concludes Indonesia visit with $630M BrahMos missile deal

India's Prime Minister Narendra Modi concluded a three-day visit to Indonesia yesterday, signing a raft of agreements covering critical minerals, agriculture, and missile procurements with the Southeast Asian nation.

The visit, part of a three-nation regional tour that will also take him to Australia and New Zealand, included bilateral talks with President Prabowo Subianto, who personally accompanied Modi to the airport prior to his departure. This was Modi's first visit to Indonesia since 2023, and followed Prabowo's visit to India as a Republic Day chief guest in January 2025.

Key Agreements Signed

India and Indonesia signed 14 agreements covering:

• Critical minerals
• Maritime security
• Defense
• Agriculture
• Supply chain strengthening in critical minerals and steel

According to a joint statement, the two leaders "reaffirmed their strong commitment to further enhance and broaden the defense and maritime partnership," building on the Defense Agreement signed in 2018. They also "highlighted that economic and trade cooperation remains a key pillar of the dynamic India-Indonesia ties" and pledged to unlock "greater economic opportunities."

BrahMos Missile Deal

The most significant agreement was a contract between BrahMos Aerospace—an Indo-Russian joint venture missile manufacturer—and Indonesia's Ministry of Defense for the provision of BrahMos supersonic missiles to the Indonesian armed forces.

The Indonesian government confirmed a "contract signing for BrahMos missile system" but did not disclose the deal's value. The joint statement described the deal as marking "the elevation of defense cooperation" between the two sides.

Indonesia has expressed interest in acquiring the BrahMos system since at least 2018. The missiles have already been purchased by the Philippines and Vietnam. In March, Indonesia's Ministry of Defense announced it had finalized an agreement to procure BrahMos cruise missiles. India's The Tribune reported at the time that the sale would include "one battery comprising launchers, radars, and missiles."

Earlier this week, Reuters cited Indian sources as saying the deal would be worth approximately $630 million.

Astra Missile Export Deal

Separately, Indonesia's Republikorp, a defense private holding company, and India-based Bharat Dynamics signed an agreement for the provision of Astra air-to-air missiles to Indonesia. This marks the first export deal for the Astra missile system.

Leaders' Statements

In a post on X prior to departing for Melbourne, Modi said he left Indonesia "with immense satisfaction at the outcomes achieved as far as the future of our partnership is concerned." He added that the visit had "opened new avenues for cooperation in defense and security, maritime collaboration, critical and emerging technologies, artificial intelligence, digital innovation and capacity building."

Speaking at a joint press conference after his summit with Modi, President Prabowo stated: "We're two of the largest democracies in the world. Partnerships between us will bring benefits to the region."

Cultural Cooperation

During the visit, Prabowo accompanied Modi to the Prambanan Temple complex in Yogyakarta, marking the inauguration of a joint conservation project for the UNESCO World Heritage Site.

Strategic Significance

While Indian media described the visit as "the most consequential developments in India's Act East policy in recent years," the visit points to a growing strategic alignment between the two nations. This alignment has been evident since the signing of a Comprehensive Strategic Partnership in 2018 between Modi and then-President Joko Widodo, aimed at expanding economic and security ties.

The two nations share common ground, from their involvement in the non-aligned movement during the Cold War to shared concerns about Chinese maritime overreach.

The BrahMos and Astra deals signal the emergence of a durable defense partnership that provides clear benefits to both sides, despite ongoing challenges in India's defense export ecosystem. For Indonesia, the deal aligns with its desire to avoid overdependence on either the U.S. or China in defense procurements. For India, it enhances its status as a valued defense industrial partner for Southeast Asian nations and a potential "third way" for defense cooperation between Beijing and Washington.