Indonesia, India Seal 16 Strategic Deals Spanning Defense, Critical Minerals, Space and AI
Key Takeaways
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JAKARTA, Investortrust.id — Indonesia and India signed 16 cooperation agreements on Tuesday spanning defense, critical minerals, steel, space technology, artificial intelligence, telecommunications, healthcare, and education, marking one of the most comprehensive expansions of bilateral ties in recent years.
The agreements were signed in the presence of Indonesian President Prabowo Subianto and Indian Prime Minister Narendra Modi following bilateral talks at Jakarta's Merdeka Palace.
The broad package underscores Indonesia's growing role in regional manufacturing and critical mineral supply chains while strengthening defense and technology cooperation with one of Asia's largest economies.
For investors, the agreements create opportunities across Indonesia's mining, steel, aerospace, defense, digital infrastructure, healthcare, and education sectors, while reinforcing the country's ambition to move further up global industrial value chains.
Prabowo said his discussions with Modi were forward-looking and focused on strategic issues of mutual interest.
"Prime Minister Modi and I held intensive and highly productive discussions focused on the future and on a number of strategic issues of common interest to both countries," Prabowo said during a joint press statement.
The two leaders agreed to deepen political cooperation through more frequent high-level exchanges, stronger bilateral consultation mechanisms, and closer collaboration between think tanks and newly established parliamentary friendship groups.
They also reaffirmed their commitment to strengthening counterterrorism cooperation and expanding security collaboration through the third Indonesia-India Security Dialogue.
Prabowo said both countries would increase cooperation on emerging technologies, digital infrastructure, and combating transnational crime while supporting stronger maritime connectivity between Indonesia's Sabang Port and India's Andaman and Nicobar Islands.
Economic cooperation featured prominently during the talks, with both governments pledging to accelerate negotiations on an Indonesia-India Preferential Trade Agreement while upgrading the ASEAN-India Trade in Goods Agreement (AITIGA).
The leaders also welcomed progress toward linking Indonesia's Quick Response Code Indonesian Standard (QRIS) with India's Unified Payments Interface (UPI), a move expected to simplify cross-border transactions for businesses and travelers.
Energy cooperation will also expand to include solar power development and exchanges of expertise in civilian nuclear technology, while both countries committed to strengthening collaboration in healthcare through training programs for doctors, nurses, and other medical professionals.
Prabowo also highlighted cooperation in education, research, and culture, including support for establishing campuses of the Indian Institute of Management (IIM) and the Indian Institute of Technology (IIT) in Indonesia, alongside expanded scholarship opportunities for Indonesian students.
"We are confident these agreements can be implemented swiftly and deliver tangible benefits for the people of both countries," Prabowo said.
Among the most commercially significant agreements were the extension of space cooperation between Indonesia's National Research and Innovation Agency (BRIN) and the Indian Space Research Organisation (ISRO), a memorandum on critical minerals and steel supply chains, and a strategic joint venture between India's Steel Authority of India and PT Krakatau Steel, Indonesia's state-owned steel producer.
The defense package included a contract between India's BrahMos Aerospace and Indonesia's Ministry of Defense covering the BrahMos missile system, as well as an agreement between Bharat Dynamics and Indonesia's Republic Corp on air-to-air missile cooperation.
Other agreements covered maritime safety, disaster management, telecommunications, medical product regulation, agriculture, election technology, scientific research, rare-earth materials, and the conservation and restoration of the UNESCO-listed Prambanan Temple complex.
Taken together, the 16 agreements represent a significant step in expanding the Indonesia-India Comprehensive Strategic Partnership beyond traditional trade into advanced manufacturing, defense, digital technology, and resilient regional supply chains.
