Prime Minister Narendra Modi concluded a landmark state visit to Jakarta on 8 July 2025, signing 20 comprehensive agreements with Indonesia spanning defence, digital infrastructure, critical minerals, and education — the most expansive bilateral package between the two nations in recent memory. Modi described the relationship as “strong and vibrant” as the two sides formalised a deepened strategic alignment between New Delhi and Jakarta.

Defence Deals: BrahMos and Astra Missiles

The centrepiece of the defence cooperation was Indonesia’s decision to expand its inventory of Indian-made BrahMos supersonic cruise missiles by acquiring additional missile batteries. Jakarta also agreed to procure India’s indigenous Astra Beyond-Visual-Range Air-to-Air Missiles (BVRAAM), which will be integrated into Indonesia’s Su-30 fighter aircraft by Bharat Dynamics Limited. The two countries also finalised an agreement for the joint development of the strategically significant Sabang Port, a move that carries considerable weight given its location near key Indian Ocean shipping lanes.

Digital and Financial Cooperation

In the digital domain, India and Indonesia announced the launch of ION, a digital commerce network built on the architecture of India’s Open Network for Digital Commerce (ONDC). Both sides also agreed to integrate the Unified Payments Interface (UPI) into a cross-border digital payments framework, aimed at easing transactions for travellers and businesses. Additionally, India will assist Indonesia’s Election Commission in developing Indonesia-specific Electronic Voting Machines (EVMs) ahead of the country’s 2029 general elections.

Critical Minerals and Investment

A Memorandum of Understanding (MoU) covering steel, nickel, and rare earth minerals was signed to strengthen critical mineral supply chains between the two countries. India also committed to investing in manufacturing facilities in Indonesia for rare earth permanent magnets — components considered essential for electric vehicle batteries and other advanced technologies. This positions the partnership within the broader global race to secure EV supply chains, where Indonesia holds some of the world’s largest nickel reserves.

Education, Culture, and People-to-People Ties

Prime Minister Modi announced that the Indian Institute of Management Bengaluru (IIM Bengaluru) will establish a global campus in Indonesia, marking a significant step in educational cooperation. India also pledged technical assistance for the restoration and conservation of the historic Prambanan Temple, reinforcing the shared civilisational ties between the two nations. Indonesian President Prabowo Subianto conferred upon Modi Indonesia’s highest civilian honour, the ‘Bintang Adipurna of the Republic of Indonesia’ (Star of Adipurna), in recognition of his contribution to strengthening bilateral relations.

Prabowo’s Remarks and Diaspora Reception

President Subianto, addressing an Indian community event in Jakarta alongside Modi, described himself as a “great admirer” of the Indian Prime Minister. In a widely noted remark, Subianto revealed that a genome sequencing test had shown he carries “an Indian DNA,” adding: “Every time I hear some music, especially Indian music, I find my body moving.” Modi, in turn, posted on X that “the atmosphere at the community programme in Jakarta was truly euphoric,” and thanked the Indian diaspora for their “warm and enthusiastic welcome.” He also noted that Subianto’s decision to join the community reception “made the occasion even more memorable.”

This visit marks one of the most substantive diplomatic engagements between India and Indonesia in years, with the two countries moving beyond declaratory statements into binding agreements across sectors that will shape the bilateral relationship for the next decade.