India, Indonesia Deepen Comprehensive Strategic Partnership with Focus on Trade, Defence and Digital Cooperation

Trade

👇खबर सुनने के लिए प्ले बटन दबाएं

India and Indonesia have reaffirmed their commitment to strengthening their Comprehensive Strategic Partnership, with Prime Minister Narendra Modi’s three-day State Visit to Indonesia resulting in a broad roadmap for expanding cooperation across defence, trade, maritime security, digital connectivity, energy, education and regional diplomacy.

Prime Minister Modi visited Indonesia from July 6 to 8 at the invitation of Indonesian President Prabowo Subianto. The visit builds on President Prabowo’s participation as the Chief Guest at India’s 76th Republic Day celebrations in January 2025 and reflects the growing momentum in bilateral relations.

High-Level Talks Cover Wide Range of Cooperation

During his visit, Prime Minister Modi received a ceremonial welcome at Jakarta’s Istana Merdeka before holding extensive bilateral discussions with President Prabowo. The leaders reviewed cooperation in political engagement, defence, maritime affairs, trade and investment, science and technology, space, agriculture, healthcare, education, tourism and regional issues.

They agreed to institutionalise regular summit-level meetings and strengthen existing bilateral mechanisms, including Joint Commission Meetings and Foreign Office Consultations, to ensure sustained progress across multiple sectors.

The leaders also welcomed enhanced parliamentary exchanges and greater collaboration between think tanks, academic institutions and policy experts to deepen strategic understanding between the two democracies.

Defence and Maritime Ties Get Major Push

Recognising their shared maritime interests in the Indo-Pacific, India and Indonesia pledged to further strengthen defence and maritime cooperation. Both countries agreed to expand collaboration in joint military exercises, defence technology, co-production, capacity building, hydrography, peacekeeping operations and information sharing.

The two sides also welcomed progress in cooperation involving the BrahMos missile system and air-to-air missile projects, signalling growing trust in defence partnerships.

Maritime cooperation will also be enhanced through improved maritime domain awareness, coastal surveillance, humanitarian assistance and disaster relief, pollution control and search-and-rescue operations. Indonesia’s decision to station an International Liaison Officer at India’s Information Fusion Centre–Indian Ocean Region was also welcomed.

Strong Stand Against Terrorism

India and Indonesia reiterated their commitment to adopting a zero-tolerance approach towards terrorism. The leaders strongly condemned terrorism in all forms and called for coordinated international efforts to combat terrorist financing, online radicalisation and misuse of emerging technologies by extremist groups.

Both countries also agreed to strengthen cooperation on cyber security, digital forensics, artificial intelligence, financial technology and protection of critical digital infrastructure.

Trade, Investment and Critical Minerals in Focus

Economic cooperation emerged as a central theme of the visit. Both leaders acknowledged the complementarity between India’s “Viksit Bharat 2047” vision and Indonesia’s “Indonesia Emas 2045” development strategy.

The two countries agreed to accelerate bilateral trade by addressing tariff and non-tariff barriers while supporting an early conclusion of the review of the ASEAN-India Trade in Goods Agreement (AITIGA).

A major area of future collaboration will be critical minerals and rare earths, which are increasingly important for global manufacturing and clean energy technologies. Several agreements were signed to strengthen cooperation in mineral processing and steel supply chains, including a strategic partnership between Steel Authority of India Limited (SAIL) and Indonesia’s PT Krakatau Steel to explore a stainless-steel manufacturing facility.

Progress towards operationalising Local Currency Transactions between the Reserve Bank of India and Bank Indonesia was also welcomed, a move expected to facilitate bilateral trade and investment.

Digital Connectivity and Infrastructure Expand

The two countries agreed to strengthen digital cooperation by promoting cross-border QR code payment systems and expanding digital public infrastructure.

Indonesia also launched the Indonesia Open Network (ION), inspired by India’s Open Network for Digital Commerce (ONDC), to help small and medium enterprises participate more effectively in the digital economy.

On connectivity, both leaders encouraged greater maritime and air links while expressing support for deeper collaboration on the development of Indonesia’s Sabang Port, which could improve connectivity between India’s Andaman and Nicobar Islands and Indonesia’s Sumatra region.

Cooperation in Health, Agriculture and Space

India and Indonesia agreed to expand cooperation in healthcare through workforce development, medical training and pharmaceutical regulation. They also committed to strengthening collaboration in agriculture, food security, fisheries and fertiliser supply.

In the space sector, both countries extended their framework agreement for peaceful uses of outer space. Indonesia appreciated India’s support in satellite launches and training programmes, while India acknowledged Indonesia’s continued assistance to India’s satellite and Gaganyaan missions.

Cultural and Regional Cooperation Strengthened

To celebrate their shared cultural heritage, both nations announced that 2026–2027 will be observed as the “Tagore–Dewantara Year of India–Indonesia Cultural and Educational Diplomacy,” commemorating the centenary of Rabindranath Tagore’s visit to Indonesia.

The leaders also inaugurated restoration work at the UNESCO World Heritage-listed Prambanan Temple complex, supported by India.

At the regional level, both countries reaffirmed their commitment to a free, open and rules-based Indo-Pacific, stronger ASEAN-India relations, reform of global governance institutions and closer coordination in forums such as BRICS, G20 and the Indian Ocean Rim Association.

Prime Minister Modi concluded his visit by inviting President Prabowo Subianto to visit India at a mutually convenient date, underscoring the shared determination of both countries to elevate bilateral ties to new strategic heights.

Shivam
Author: Shivam

Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]

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