India, Indonesia boost defence, trade and maritime ties
By Aroonim Bhuyan
New Delhi/Jakarta, July 7. India and Indonesia have agreed to significantly deepen their Comprehensive Strategic Partnership, charting an ambitious roadmap that spans defence manufacturing, maritime security, critical minerals, digital connectivity, trade, clean energy and emerging technologies, while reaffirming their shared commitment to a free, open and rules-based Indo-Pacific and a stronger voice for the Global South.
The decisions were announced following summit-level talks between Prime Minister Narendra Modi and Indonesian President Prabowo Subianto at Jakarta’s Istana Merdeka on on July 7 during Modi’s three-day state visit to Indonesia from July 6 to 8. The visit comes nearly 18 months after President Prabowo attended India’s 76th Republic Day celebrations in January 2025 as the chief guest, reflecting the growing strategic convergence between the two maritime democracies.
The two leaders reviewed the entire spectrum of bilateral ties, ranging from political engagement and defence cooperation to trade, investment, digital economy, science and technology, space, energy security, healthcare, education, culture and regional cooperation. They also witnessed the exchange of a series of agreements intended to translate the Comprehensive Strategic Partnership into tangible outcomes.
Ancient civilisational bonds, modern strategic partnership
India and Indonesia share one of Asia’s oldest civilisational relationships, with cultural, religious and commercial links stretching back over two millennia. Hindu-Buddhist influences from India continue to shape Indonesian culture, while epics such as the Ramayana and Mahabharata remain deeply embedded in Indonesian traditions, particularly in Java and Bali.
Diplomatic relations between the two countries were established in 1949 soon after Indonesia’s independence. Their modern partnership has steadily evolved through cooperation in regional institutions such as ASEAN, the East Asia Summit, the Indian Ocean Rim Association (IORA), G20 and, more recently, BRICS following Indonesia’s entry into the grouping.
The relationship was elevated to a Comprehensive Strategic Partnership in 2018 during Prime Minister Modi’s visit to Indonesia, accompanied by the adoption of the ‘Shared Vision on Maritime Cooperation in the Indo-Pacific’. Since then, both countries have increasingly viewed each other as indispensable partners in safeguarding the security and prosperity of the Indian Ocean and Southeast Asia.
Stronger political engagement
Recognising the importance of sustained high-level dialogue, Prime Minister Modi and President Prabowo agreed to institutionalise regular summit meetings, including on the sidelines of major multilateral gatherings.
The two sides also resolved to strengthen existing bilateral mechanisms, including the Joint Commission Meeting, Foreign Office Consultations and sector-specific ministerial dialogues, while encouraging greater parliamentary exchanges through newly established Parliamentary Friendship Groups.
Think tanks, universities and policy institutions from both countries will also receive greater support to encourage strategic dialogue and policy collaboration.
Defence partnership enters a new phase
One of the most significant outcomes of the summit was the decision to substantially expand defence and maritime cooperation.
Acknowledging that India and Indonesia are maritime neighbours situated at opposite ends of the strategically vital Malacca Strait, the two leaders reaffirmed their commitment to broadening defence ties beyond traditional military exchanges.
Building upon the third Defence Ministers’ Dialogue held in New Delhi last year, the countries agreed to intensify cooperation through regular military dialogues and staff talks, joint military exercises, defence research and co-development,
joint production of advanced defence technologies, defence industrial cooperation;
hydrography and maritime surveillance, peacekeeping operations, capacity building and officer training, and naval port visits.
The two leaders welcomed the elevation of defence cooperation through collaboration on the BrahMos missile system and implementation of the Air-to-Air Missile Cooperation Agreement.
The summit also identified defence manufacturing as a major pillar of future cooperation. India and Indonesia will explore joint shipbuilding projects, maintenance, repair and overhaul (MRO) facilities, technology transfer, defence research and development, defence supply-chain integration and joint production of military equipment.
The leaders also appreciated growing collaboration between the armed forces’ medical establishments, particularly in supplying pharmaceuticals and military medicines.
Maritime security takes centre stage
Given their strategic geographical locations overlooking key sea lanes of communication, maritime cooperation featured prominently in the summit.
Both countries agreed to strengthen collaboration in maritime domain awareness, coastal surveillance, humanitarian assistance and disaster relief (HADR), search and rescue operations, pollution control and maritime connectivity.
The renewal of the Memorandum of Understanding on Maritime Safety and Security Cooperation and a new implementing arrangement between Indonesia’s BAKAMLA and the Indian Coast Guard are expected to further improve operational coordination.
Indonesia also welcomed the posting of its International Liaison Officer at India’s Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram, a move expected to enhance real-time maritime information sharing.
The two sides reiterated their commitment to resolving maritime issues in accordance with international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
United against terrorism
The summit produced one of the strongest joint statements on counter-terrorism issued by the two countries in recent years.
Both leaders unequivocally condemned terrorism in all its forms and called for decisive international action against globally designated terrorists and terrorist organisations, including those listed under the UN Security Council’s 1267 Sanctions Committee.
India and Indonesia agreed to adopt a zero-tolerance approach towards terrorism by strengthening cooperation against terror financing, money laundering, online radicalisation, misuse of emerging technologies by terrorist organisations and violent extremism.
They also agreed to deepen cooperation in combating cybercrime, organised crime and transnational criminal networks while fast-tracking negotiations on a bilateral Counter-Terrorism Cooperation Agreement.
The upcoming third India-Indonesia Security Dialogue is expected to provide an umbrella framework for cooperation on cyber security, artificial intelligence, digital forensics, critical information infrastructure protection and Computer Emergency Response Team (CERT) collaboration.
Economic partnership gets fresh momentum
Economic cooperation emerged as another major pillar of the summit.
Prime Minister Modi and President Prabowo noted the strong complementarities between India’s ‘Viksit Bharat 2047’ vision and Indonesia’s ‘Indonesia Emas 2045’ development agenda.
The leaders supported an early conclusion of the review of the ASEAN-India Trade in Goods Agreement (AITIGA) to facilitate more balanced and mutually beneficial trade before exploring deeper bilateral economic engagement.
Existing economic dialogue mechanisms – including the Working Group on Trade and Investment, Biennial Trade Ministers’ Forum and the newly established Joint Economic and Financial Dialogue – will work towards resolving tariff and non-tariff barriers, improving market access and strengthening supply chains.
Recognising the strategic importance of critical minerals, both countries pledged to develop resilient supply chains for rare earths and other strategic minerals essential for electric vehicles, renewable energy and advanced manufacturing.
The summit witnessed agreements on cooperation in rare earth technologies, steel supply chains and a strategic joint venture between India’s Steel Authority of India Limited (SAIL) and Indonesia’s Krakatau Steel to explore establishing a stainless-steel slab manufacturing facility in Indonesia.
The leaders also welcomed progress towards operationalising local currency transactions between the Reserve Bank of India and Bank Indonesia to facilitate bilateral trade while reducing dependence on third-country currencies.
Expanding health, agriculture and energy cooperation
Healthcare emerged as another area of growing collaboration.
The two countries signed an implementation arrangement for professional health workforce development covering specialised medical training, fellowships, exchange of healthcare professionals and sharing of best practices.
They also advanced cooperation in pharmaceutical regulation and medical product standards while working towards agreements on food safety and processed food regulation.
In agriculture, the two sides committed themselves to improving food security through greater agricultural trade, joint research, innovation and knowledge-sharing.
Cooperation will also expand in fertilisers, fisheries and marine resources.
Energy security featured prominently during the discussions, with both leaders agreeing to strengthen cooperation in LNG, green hydrogen, solar energy, bioenergy, conventional fuels and energy-efficient technologies.
Connectivity and digital cooperation
Connectivity initiatives received fresh momentum during the summit.
The leaders agreed to accelerate implementation of the Andaman-Aceh connectivity initiative, recognising its strategic importance for linking India’s Andaman and Nicobar Islands with Indonesia’s Sumatra Province.
President Prabowo welcomed India’s interest in participating in the integrated development of Sabang Port, located close to the entrance of the Malacca Strait.
The proposed collaboration extends beyond port infrastructure to include cruise tourism, shipbuilding, ship repair, maritime industries and offshore energy support services, with the objective of creating a regional economic hub.
Digital cooperation also featured prominently.
Indonesia formally launched the Indonesia Open Network (ION), modelled on India’s Open Network for Digital Commerce (ONDC), to support micro, small and medium enterprises.
The two countries also made progress towards implementing cross-border QR code payment connectivity and signed an agreement on telecommunications technologies and digital services aimed at accelerating digital transformation.
Science, space and emerging technologies
India and Indonesia agreed to significantly broaden cooperation in science, innovation and emerging technologies.
The summit endorsed the extension of the framework agreement on peaceful uses of outer space while appreciating ongoing collaboration between the Indian Space Research Organisation (ISRO) and Indonesia’s National Research and Innovation Agency (BRIN).
President Prabowo acknowledged India’s support for Indonesian satellite launches and space capacity building, while Prime Minister Modi appreciated Indonesia’s continued support for India’s satellite programmes and the Gaganyaan human spaceflight mission through facilities at Biak.
Indonesia also expressed interest in collaborating with India on developing a spaceport ecosystem.
The two countries further agreed to explore cooperation in peaceful uses of nuclear energy, including nuclear medicine, agriculture, water management and regulatory capacity building.
Shared heritage and educational links
The summit also celebrated the enduring civilisational ties between the two countries.
Prime Minister Modi and President Prabowo jointly inaugurated restoration and conservation work at the UNESCO-listed Prambanan Temple Complex in Yogyakarta, undertaken with Indian assistance.
Indonesia also appreciated India’s gift of a replica of the ninth-century Nalanda Copper Plate, now displayed at the Muara Jambi Museum.
Recognising the intellectual legacy of Rabindranath Tagore and Indonesian education pioneer Ki Hajar Dewantara, the two leaders declared 2026-2027 as the ‘Tagore-Dewantara Year of India-Indonesia Cultural and Educational Diplomacy’.
The year-long programme will commemorate the centenary of Tagore’s 1927 visit to Indonesia through cultural festivals, academic exchanges, educational initiatives and people-to-people interactions.
The leaders also encouraged greater tourism, easier travel and visa facilitation while welcoming proposals to establish an overseas campus of the Indian Institute of Management Bangalore in Indonesia.
Climate action and disaster resilience
Climate resilience and biodiversity conservation also received considerable attention.
President Prabowo welcomed India’s leadership in establishing the International Big Cat Alliance, while Prime Minister Modi appreciated Indonesia’s initiatives on mangrove and peatland conservation.
The two countries signed an agreement on disaster management cooperation to improve preparedness, capacity building, information sharing and resilient infrastructure.
Coordinating on global issues
On regional and international affairs, India and Indonesia reaffirmed their commitment to a free, open, transparent, inclusive and rules-based Indo-Pacific grounded in international law.
The two countries reiterated support for freedom of navigation, overflight and peaceful settlement of disputes in accordance with UNCLOS.
They also called for comprehensive reforms of the United Nations Security Council and broader international institutions to reflect contemporary geopolitical realities and provide greater representation to developing countries.
Indonesia reaffirmed support for India’s BRICS Chairship in 2026, while India pledged support for Indonesia’s expanding role within BRICS.
The leaders also stressed the importance of ASEAN centrality, strengthening ASEAN-India cooperation and enhancing coordination through forums such as the G20, BRICS, IORA, East Asia Summit and the India-Indonesia-Australia Trilateral.
Expressing concern over developments in West Asia, both leaders called for de-escalation through dialogue and diplomacy while underscoring the importance of safeguarding freedom of navigation through the Strait of Hormuz.
Strategic convergence deepens
The summit highlighted the remarkable evolution of India-Indonesia ties from historical and cultural affinity to an increasingly comprehensive strategic partnership anchored in shared maritime interests, resilient supply chains, defence cooperation and emerging technologies.
As both countries seek to play larger roles in shaping the Indo-Pacific and amplifying the voice of the Global South, the decisions announced in Jakarta signal a decisive shift towards a more integrated partnership capable of influencing the evolving regional and global strategic landscape.
Modi conferred Indonesia’s highest civilian honour
Prime Minister Modi was also conferred Indonesia’s highest civilian honour, the ‘Bintang Adipurna of the Republic of Indonesia’, by President Prabowo in recognition of his leadership and outstanding contribution to strengthening bilateral relations between the two countries.
The prestigious award underscored the growing strategic partnership and deepening ties between New Delhi and Jakarta.
According to the Ministry of External Affairs, the honour acknowledges Modi’s role in elevating India-Indonesia relations and advancing cooperation across a wide range of sectors.
Accepting the award, the Prime Minister dedicated the honour to the people of both India and Indonesia and described it as a tribute to the enduring civilisational bonds that have linked the two nations for centuries.
PM addresses Indonesian Parliament, unveils ‘Ganga-Mahakam Vision’
Modi on July 7 became the first Indian Prime Minister to address the Parliament of Indonesia, calling for a new chapter in bilateral relations through the proposed ‘Ganga-Mahakam Vision’ that seeks to build on the two countries’ shared civilisational heritage while expanding cooperation in trade, technology, security and regional affairs.
Addressing Indonesian lawmakers in Jakarta during his state visit, Modi highlighted the centuries-old cultural and maritime links between India and Indonesia and reaffirmed New Delhi’s commitment to strengthening democratic and strategic ties with Southeast Asia’s largest nation.
The Prime Minister began his address by thanking Indonesian President Prabowo Subianto for his presence and Parliament Speaker Puan Maharani for inviting him to the legislature. Extending greetings on behalf of India’s 1.4 billion people, he described India, the “Mother of Democracy”, as eager to deepen democratic engagement with Indonesia.
Recalling more than two millennia of interaction across the Indian Ocean, Modi said the sea had long served as a bridge connecting the two nations through commerce, culture, ideas and faith. He noted that the shared values of ‘Vasudhaiva Kutumbakam’ (the world is one family) and Indonesia’s national motto ‘Bhinneka Tunggal Ika’ (Unity in Diversity) continue to shape the contemporary partnership between the two countries.
The Prime Minister said India and Indonesia are natural and trusted partners, united by common historical experiences, similar developmental challenges and shared aspirations for the future.
Modi called for expanding collaboration in trade and investment, connectivity, food and energy security, digital public infrastructure and emerging technologies to unlock the full potential of the partnership.
The Prime Minister also reiterated India’s commitment to working closely with Indonesia to strengthen the voice of the Global South and promote a free, open, inclusive and rules-based Indo-Pacific.
As a blueprint for the future, Modi proposed the ‘Ganga-Mahakam Vision’ – named after the Ganga in India and the Mahakam River in Indonesia – to guide bilateral engagement. Under this framework, he said the two countries should reinforce their civilisational links, share developmental experiences, deepen security and strategic trust, promote maritime prosperity and jointly amplify the concerns and aspirations of the Global South.
