India-Indonesia Ties Soar: A Strategic Trade and Defence Partnership in the Making

By R Anil Kumar

• As Indonesia’s President Prabowo Subianto prepares for his anticipated visit to India in 2025, the spotlight is on the increasingly robust partnership between the two nations

• With bilateral trade reaching an impressive USD 29.4 billion in FY2023-24, India and Indonesia are on track to deepen their economic and defence cooperation

• From energy to technology and defence manufacturing, their collaboration is expanding rapidly, providing significant opportunities for both countries in the years ahead

• Indonesia Explores Brahmos Technology Collaboration with India

• Jakarta has been considering acquiring the supersonic missile for the last few years. However, consideration of a collaboration on its technology is a first

• It comes as the defence minister acknowledged India’s strides in the development of domestic defence technology in recent years

Jakarta, December 23. Indonesia is exploring cooperation with India on defence technology, including on the Brahmos cruise missile.

Additional areas of cooperation include joint exercises, ship development, and joint maritime security operations, Indonesian Defence Minister Sjafrie Sjamsoeddin said after a meeting with visiting Indian Navy chief Admiral Dinesh K Tripathi.

“India is ready to participate in the Multilateral Naval Exercise Komodo 2025 in Bali and supports the plan for joint patrols in the Straits of Malacca,” Sjamsoeddin said on X.

“Collaboration on advanced technologies such as BrahMos is also in the spotlight, as well as an opportunity for Indonesia to learn and develop.”

Defence Collaboration with India

Jakarta has been considering acquiring the supersonic missile for the last few years. However, consideration of a collaboration on its technology is a first.

It comes as the defence minister acknowledged India’s strides in the development of domestic defence technology in recent years.

In addition to Brahmos, the South Asian country has developed and produced indigenous platforms for both domestic needs and exports such as artillery, multi-barrel rocket launchers, and air defence systems.

With this, India is attempting to position itself as a more cost-effective alternative to Western platforms.

“The Minister of Defence is aware that India’s technology is currently developing very rapidly,” the head of the Defence Information Bureau General Frega F. Wenas Inkiriwang told the Media during a Presser.

“Therefore, the Minister of Defence expressed his joy in being able to work together with India, especially in the defence sector to improve Indonesia’s domestic technology.”

Deepening Defence Cooperation

While trade ties are flourishing, defence collaboration between India and Indonesia is equally on the rise. Both nations are increasingly focused on indigenous defence manufacturing, particularly under India’s Aatmanirbhar Bharat initiative, which aims to reduce dependence on foreign defence imports. This shared interest in bolstering defence capabilities has led to several key developments, including joint initiatives in military equipment production and joint defence exercises.

A notable example of this cooperation was the visit of the Indian submarine INS Sindhukesari to Jakarta in February 2024. This marked a significant milestone in the growing maritime collaboration between India and Indonesia. Earlier this month two Indian naval warships, INS Kesari and INS LCU L57, docked at Sabang Port in Aceh, further highlighting the strengthening of naval ties. The frequent visits and exchanges are helping both countries enhance their naval capabilities and ensure regional security.

A Flourishing Trade Relationship

The economic ties between India and Indonesia have grown significantly, making Indonesia one of India’s top trading partners. As noted in the latest Rubix Data Sciences report, India’s exports to Indonesia reached USD 5.99 billion in FY2024, driven by key sectors like mineral fuels, vehicles, and machinery. Indonesia’s role as India’s second-largest supplier of coal and crude palm oil highlights the strategic importance of this trade relationship, which is vital for India’s growing energy and industrial needs.

Indonesia, in turn, is capitalizing on India’s vast consumer market, with investments in sectors such as automotive, pharmaceuticals, and banking. According to Rubix Data Sciences, Indonesia’s cumulative investments in India stand at USD 653.83 million. This influx of capital and interest in India’s rapidly developing industries presents a win-win for both countries. As Indonesia continues to modernize its industrial base and diversify its economy, the potential for collaboration in sectors like electric vehicles (EVs) and clean energy is particularly promising.

Brahmos

The Brahmos is a joint development of Russia’s NPO Mashinostroyenia and India’s Defence Research and Development Organization.

A joint venture of the two state firms, BrahMos Aerospace, produces the weapon.

The missile is based on Russia’s P-800 Oniks family of cruise missiles, featuring the world’s fastest speed of Mach 3.

It can be launched from air, sea, and land and strike targets 290 to 500 kilometers (180-311 miles) away, depending on the platform.

The land and sea-based versions weigh around 3,000 kilograms (6,614 pounds), with a payload of 300 kilograms (661 pounds). The air-launched variant is lighter by around 500 kilograms (1,102 pounds).

Additional features of the missile include an inertial navigation system (INS) for naval targets and a blend of INS and GPS for ground targets.

For terminal guidance, it relies on an active/passive radar system.

The missile is in service with all three Indian military services and the Philippine Marine Corps.