India and Indonesia have announced a significant expansion of their strategic partnership, sealing new agreements on defence cooperation, critical minerals and the joint development of Indonesia’s Sabang Port during Prime Minister Narendra Modi’s visit to Jakarta. The moves deepen ties between the two Indo-Pacific countries and underscore their efforts to strengthen security and supply-chain resilience in a key maritime corridor.
Following talks between Modi and Indonesian President Prabowo Subianto, the two sides agreed on additional procurement of India’s BrahMos supersonic cruise missiles and Astra Mk-1 beyond-visual-range air-to-air missiles for Indonesia. Indonesia will induct the Astra missile and buy more BrahMos batteries, making it one of the first overseas customers for India’s indigenous air-to-air system.
Defence cooperation formed a central pillar of the announcements. An Indian government official confirmed that India will supply the BrahMos missile system and Astra missiles to Indonesia, marking a notable expansion of New Delhi’s defence exports in Southeast Asia. Indonesia has been pursuing armed forces modernisation, and the new procurement builds on an agreement reached earlier this year on BrahMos systems.
Beyond defence, the two governments unveiled an agreement on critical mineral supply chains, under which India will invest in manufacturing steel, nickel and rare-earth permanent magnets in Indonesia. The arrangement aims to support industrial and clean-tech value chains where Indonesia holds substantial mineral reserves, while diversifying away from existing areas of dominance by other suppliers.
A key strategic outcome is the decision to jointly develop Sabang Port, located on Weh Island off the northern tip of Sumatra and overlooking the Strait of Malacca, one of the world’s busiest maritime chokepoints. The port lies close to India’s upcoming Great Nicobar trans-shipment project, giving New Delhi a presence on both sides of a vital sea lane used heavily for energy and goods shipments.
The Sabang initiative builds on years of discussions and a joint feasibility study on the port’s development, which highlighted its potential to enhance connectivity and provide India with improved access to the Malacca Strait. Indonesian authorities have signalled plans for Sabang to evolve into a broader marine hub, integrating logistics, maritime services and tourism, which could complement India’s ambitions at Great Nicobar.
Taken together, the new missile deals, critical minerals framework and Sabang Port agreement mark a clear tightening of India–Indonesia strategic alignment in the Indo-Pacific. The announcements position both countries to deepen cooperation across defence, industrial supply chains and maritime infrastructure at a time of heightened focus on regional security and economic resilience.
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