Prime Minister Narendra Modi heralded a “new golden chapter” in India-Indonesia ties on Tuesday as he held talks with President Prabowo Subianto in Jakarta. The two sides inked nearly a dozen agreements on Tuesday to significantly bolster two-way cooperation in several areas — including critical minerals, technology, food security, medicines and maritime security. India has also agreed to supply Indonesia with the BrahMos cruise missile ​system ​and the Astra ⁠air-to-air missile.

“The Comprehensive Strategic Partnership we forged in 2018 is taking a new flight today. We are taking important steps forward in every sector — development, security, technology, culture, and education. I am sure that a new golden chapter in India and Indonesia’s bilateral relations will begin from today,” the PM said soon after his talks with Subianto.

Modi landed in Jakarta on Monday to a red-carpet welcome in the first leg of his three-nation tour to shore up trade and security cooperation. He was accorded a grand ceremonial welcome with horse-mounted guards, a ceremonial Guard of Honour, and enthusiastic crowds marking the commencement of his official visit . Indonesian President Prabowo Subianto personally received the Prime Minister, and the two leaders were seen sharing a warm hug before embarking on their high-level bilateral talks. Indonesia also conferred its highest award — the’Bintang Adipurna of the Republic of Indonesia’ medal of honour — upon PM Modi on Tuesday.

Major defence deal inked

India has signed a deal with the Indonesian defence ministry to supply its BrahMos cruise missile system, The development was confirmed by officials from both sides without divulging additional details. The India-Russia joint venture missile manufacturer had said in 2023 that it was in advanced discussions with the other country for a deal worth between $200 million and $350 million. News agency PTI reported that Jakarta had also decided to import India’s air-to-air Astra missiles following the its successful use during Operation Sindoor.

India and Indonesia established formal defence ties in 1951, while a Defence Cooperation Agreement was signed in 2001 and renewed in 2006. The partnership received a major boost during Prime Minister Modi’s visit to Indonesia in 2018, when both countries signed a Memorandum of Understanding on Defence Cooperation.

The missile deals are part of a series of strategic agreements aimed at deepening the Comprehensive Strategic Partnership between the two maritime neighbours. India and Indonesia also finalised a framework on maritime safety and security cooperation. PM Modi confirmed that the Indian Space Research Organisation will assist in the exploration of outer space for peaceful purposes and help in the capacity building of Indonesia’s space sector.

UPI integration

India and Indonesia have also agreed to integrate payment facilities — linking the domestic Unified Payments Interface with systems used in the other country. It will likely allow travellers and businesses to make cross-border retail payments more conveniently by using their domestic payment apps once operational.

“We are delighted that India’s UPI is set to integrate with Indonesia’s payment system. This will boost both ease of doing business and ease of travel,” Modi confirmed.