On 7 July 2026, Prime Minister Narendra Modi and Indonesian President Prabowo Subianto concluded a series of agreements that deepen defence, economic and maritime ties under the Comprehensive Strategic Partnership of 2018. The talks focused on missile sales, critical mineral supply chains, port development and people‑to‑people links.
Key Developments
- Indonesia will acquire India’s BrahMos and Astra missiles.
- India will invest in Indonesian manufacturing of critical minerals, steel and rare‑earth permanent magnets.
- Joint development of the strategically‑located Sabang port, which lies close to the Strait of Malacca and India’s Great Nicobar project.
- Establishment of an Indian Institute of Management‑Bangalore (IIM‑B) campus in Indonesia.
- Integration of India’s UPI with Indonesia’s payment system.
- Co‑operation in the blue economy, maritime trade and disaster management.
Important Facts
The missile deal follows similar pacts with Vietnam and the Philippines, though the exact number of missiles for Indonesia remains undisclosed. The critical‑mineral investment aims to secure supply‑chain resilience for high‑tech and defence sectors. The Sabang port project is part of a broader Indo‑Pa