India will supply the BrahMos cruise missile system and the Astra air-to-air missile to Indonesia, an Indian government official said on Tuesday.
Prime Minister Narendra Modi met President Prabowo Subianto as part of his two-day visit to Indonesia, his first trip to the Southeast Asian country since 2023.
BrahMos, an India-Russia joint venture missile manufacturer, and Indonesia's defence ministry signed a contract for the BrahMos missile defense system, according to an announcement in Jakarta, which provided no details.
Reuters reported earlier on Tuesday that India will supply the BrahMos cruise missile system and the Astra air-to-air missile to Indonesia, citing an Indian government official.
In 2023, BrahMos said it was in advanced discussions with Indonesia on a deal worth between $200 million and $350 million for its missile systems. It has already signed deals with neighbours Vietnam and the Philippines.
Separately, Indonesia's Republikorp, a defence private holding company, and India-based defence company Bharat Dynamics signed an agreement on air-to-air missiles, the palace announced.
The two countries also signed memorandums of understanding for strengthening supply chains in critical minerals and steel, as well as agriculture.
Steel Authority of India and Indonesia's Krakatau steel will also establish a joint venture for stainless steel slab making in Indonesia.
"We're two of the largest democracies in the world," Prabowo said alongside Modi. "Partnerships between us will bring benefits to the region."
India and Indonesia will accelerate preferential trade agreement talks, Prabowo said.
"In today's era, the supply chain resilience of technology holds great significance. An important agreement was reached to further strengthen the supply chain in the sectors of critical minerals and steel," Modi said.
"A new beginning is being made in partnerships between our companies regarding stainless steel and rare-earth magnets," he said.
Modi further said the two countries will work on promoting maritime safety and security in the Indian Ocean.
Neither leader mentioned the BrahMos deal in their remarks. Prabowo met Modi in New Delhi last year, where they signed a wide range of agreements.
India and Indonesia also agreed to jointly develop the strategically-located Sabang port which overlooks the Strait of Malacca and is 100 miles away from India’s Great Nicobar port project.
"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," Modi said in his media statement following the talks.
"I am confident that a golden chapter of India-Indonesia partnership begins today," he said.
The prime minister said growing trust between India and Indonesia is strengthening the bilateral defence, security, and maritime cooperation.
Today, India and Indonesia reached an agreement to enhance defence exchanges, disaster management, and industrial cooperation, he said.
Modi also announced a decision to set up a campus of the Indian Institute of Management-Bangalore in Indonesia.
"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," he said.
The two sides also decided to enhance cooperation in areas of blue economy, maritime trade and port development.
The prime minister and the Indonesian president also discussed various global challenges including the situation in West Asia.
"In this era of global turmoil, India believes that the role of dialogue and diplomacy has become more important than ever before," Modi said.
"On the issue of Palestine, we support the Two-State Solution and long-term peace," he said.
Modi is set to leave for Australia and New Zealand on Wednesday.
PM conferred with Indonesia's highest honour 'Bintang Adipurna'
Prime Minister Narendra Modi was on Tuesday conferred with Indonesia's highest honour 'Bintang Adipurna of the Republic of Indonesia' medal for his role in strengthening the ties between both the countries.
Indonesian President Prabowo Subianto presented the medal to Modi.
"This morning, I have also been conferred with Indonesia's highest honour with immense affection. This honour belongs to the crores of Indians... it belongs to the sentiments of the people of Indonesia, to the historic and intimate ties between India and Indonesia," Prime Minister's Office posted on X.
"I express my heartfelt gratitude to President Prabowo Ji, the Government of Indonesia, and the people here: PM @narendramodi," the post said.
External affairs ministry spokesperson Randhir Jaiswal said that the award is a "tribute to the India-Indonesia friendship." "Prime Minister @narendramodi was conferred 'Bintang Adipurna of the Republic of Indonesia' Medal of Honour by President @prabowo. This is the highest honour of Republic of Indonesia," Jaiswal posted on X.
"It has been awarded in recognition of PM’s leadership in strengthening India-Indonesia friendship and furthering unity, continuity and prosperity of Indonesia," the post read.
"PM dedicated the honour to the people of India and the enduring bonds of friendship between India and Indonesia," it said.
External affairs minister S Jaishankar also said that the honour is "a testament to PM Modi’s steadfast efforts towards deepening our Comprehensive Strategic Partnership, as well as stronger India - ASEAN ties." "The conferment of ‘Bintang Adipurna of the Republic of Indonesia’ Medal of Honour upon PM @narendramodi is a matter of immense pride for all Indians," Jaishankar posted on X.
Instituted in 1959, the Bintang Adipurna of the Republic of Indonesia is the highest honour in the Republic of Indonesia.
This award is given to individuals who have rendered exceptional service to the unity, continuity and prosperity of the Republic of Indonesia.