**EDS: THIRD PARTY IMAGE** In this image posted on July 7, 2026, Prime Minister Narendra Modi with Indonesia�s President Prabowo Subianto during the Indian Community reception, in Jakakta, Indonesia. (narendramodi.in via PTI Photo) (PTI07_07_2026_000582B)
PTI Photo
Jakarta, Jul 7 (PTI) India on Tuesday agreed to supply BrahMos supersonic cruise missiles and Astra air-to-air missiles to Indonesia, marking a significant expansion of defence ties as Prime Minister Narendra Modi and President Prabowo Subianto underlined the importance of deeper bilateral partnership for a free and peaceful Indo-Pacific.
The two sides inked 14 agreements to enhance bilateral cooperation in a range of areas, including critical minerals and steel supply chains, maritime security, medicines, education, outer space, research and innovation, telecommunication and food security, further broadening ties amid growing geopolitical upheavals.
In another significant move, India and Indonesia agreed to jointly develop the strategically-located Sabang Port, which overlooks the Strait of Malacca and is around 100 miles away from India’s Great Nicobar Port project.
"I express my support for the development of ports in the Andaman and Nicobar Islands, as well as the development and expansion of Sabang Port in Aceh, as a strategic link between Sabang Island and the Andaman and Nicobar Islands in India," President Prabowo said.
After his talks with the Indonesian president, PM Modi said: "A golden era is now at the threshold for our two nations." Modi landed in Jakarta on Monday to a red-carpet welcome in the first leg of his three-nation tour – that will also cover Australia and New Zealand – to shore up cooperation in sectors such as trade, energy, security and rare-earth minerals under the framework of the India-Indonesia Comprehensive Strategic Partnership of 2018.
In Tuesday's meeting, Modi and Prabowo called for a "zero-tolerance" approach to counter terrorism, demanded action against globally proscribed terrorists and welcomed the early conclusion of an agreement on counter-terror cooperation between the two countries, to be signed in the "near future".
In his media statement, Modi said India reiterated its call for navigating "global turbulence" through dialogue and diplomacy, and asserted New Delhi's support for a two-state solution to the Palestine issue.
The pacts sealed after the talks included one on supply of an unspecified number of BrahMos missiles and another on Astra beyond-visual range missiles.
It is perhaps the first time that two Indian defence exports deals, estimated to be worth over USD 600 million, were announced in presence of the prime minister. Both weapon systems played a major role for the Indian military during Operation Sindoor last year.
The BrahMos missile deal with Indonesia came after India inked similar pacts with Vietnam and the Philippines. BrahMos Aerospace Pvt Ltd, an India-Russian joint venture, produces the supersonic cruise missiles.
The missile pacts, as well as another decision on implementation of an agreement on maritime safety and security, came against the backdrop of rising concerns in South East Asia over China's increasing military muscle-flexing in the resource-rich South China Sea and beyond.
Modi said the growing trust between the two countries is strengthening cooperation in defence, security and the maritime domain.
"Today, we agreed to further enhance collaboration in defence exchanges, disaster management, and industrial cooperation," he said.
"Our two Coast Guards will now work together to enhance maritime safety and security in the Indian Ocean. As two close maritime nations, we have also decided to deepen our cooperation in the blue economy, port development, and maritime trade," he said.
Without making any direct reference to Chinese belligerence in the South China Sea, the two leaders underscored the importance of respect for sovereignty and territorial integrity, adherence to international law, including the 1982 UN Convention on the Law of the Sea (UNCLOS), freedom of navigation and overflight while refraining from the threat or use of force.
President Prabowo appreciated India’s consistent support for ASEAN (Association of Southeast Asian Nations) unity and ASEAN centrality in the evolving regional architecture for regional peace, stability and prosperity, according to a joint statement.
Both leaders identified collaboration in the defence industry as one of the priority areas of cooperation. They agreed to expand mutually beneficial collaboration for joint production of equipment, sourcing of defence equipment, including cooperation in ship-building, and establishment of MRO (Maintenance, Repair, and Overhaul) facilities.
It was also decided that Indonesia will deploy a Liaison Officer at India's Integrated Fusion Centre – Indian Ocean Region (IFC-IOR).
New Delhi also decided to invest in the manufacturing of steel, nickel and rare earth permanent magnets in Indonesia – key inputs for the production of electric vehicle motors, wind turbines and smartphones.
"In today’s world, supply chain resilience in technology has become critically important. We have also concluded an important agreement to strengthen supply chain resilience in the areas of critical minerals and steel," Modi said.
"In addition, our companies are embarking on a new phase of partnership in stainless steel and rare earth magnets," he said.
The prime minister said India's Unified Payments Interface (UPI) will soon be integrated with Indonesia’s payment system and it will further enhance both the ease of doing business and the ease of travel between the two countries.
"Our Comprehensive Strategic Partnership, established in 2018, is reaching new heights today. We are making significant strides across every domain of cooperation, including development, security, technology, culture, and education," Modi said.
"I am confident that today marks the beginning of a golden new chapter in the India-Indonesia partnership. This new chapter will have a profound and positive impact on the world of the 21st century and on humanity as a whole," he said.
Modi also announced a decision to set up a campus of the Indian Institute of Management (IIM) Bangalore in Indonesia.
The two sides also decided to enhance cooperation in areas of blue economy, maritime trade and port development.
India and Indonesia also decided to boost cooperation in the space sector. "We have taken important decisions today to advance joint research, technology sharing, and capacity building in the space sector," Modi said.
The prime minister and the Indonesian president also discussed various global challenges, including the situation in West Asia.
"In this period of global turbulence, India believes that the role of dialogue and diplomacy has become more important than ever before,” said Modi, adding: “On the issue of Palestine, we continue to support a two-state solution and the pursuit of lasting peace." The two leaders expressed deep concerns over the situation in West Asia and its global effects, according to the joint statement.
They welcomed the Memorandum of Understanding signed by the US and Iran on June 17.
“They underlined the importance of de-escalation and reiterated that all issues must be resolved through dialogue and diplomacy," the statement said.
"They also share the same view to respect freedom of navigation and global flow of commerce and the implementation of transit passage through the Strait of Hormuz, in accordance with international law including the provisions of UNCLOS," it added.
In his remarks, the prime minister also touched upon people-to-people ties between the two countries. "Our two countries will also celebrate, with great enthusiasm, the centenary of Gurudev Rabindranath Tagore’s historic visit to Indonesia. Indonesia’s remarkable journey of nation-building owes much to the visionary educator and its first Minister of Education, Ki Hajar Dewantara," he said. PTI MPB ABD ABD
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