India has secured a landmark defence agreement with Indonesia worth approximately $630 million, marking one of New Delhi’s most significant military export successes and strengthening strategic ties between the two Indo-Pacific nations.
The deal, announced during Indian Prime Minister Narendra Modi’s two-day visit to Jakarta, will see India supply Indonesia with its advanced BrahMos supersonic cruise missile system and Astra beyond-visual-range air-to-air missiles, according to Indian government officials.
The agreement underscores India’s growing ambitions to become a major global defence exporter while reinforcing Indonesia’s efforts to modernize its military capabilities amid rising geopolitical competition in the Indo-Pacific region.
A Major Milestone for India’s Defence Exports
The deal makes Indonesia the third foreign customer to purchase the BrahMos missile system after the Philippines and Vietnam, further enhancing India’s reputation as an emerging supplier of advanced military hardware.
The BrahMos missile, jointly developed by India and Russia through BrahMos Aerospace, is regarded as one of the world’s fastest supersonic cruise missiles. It can be launched from land, sea, and air platforms and is capable of striking targets at high speeds with exceptional precision.
The defence package also includes the Astra missile system, which can be integrated into Indonesia’s fleet of Russian-made Sukhoi fighter jets, significantly enhancing the country’s air combat capabilities.
Strategic Significance in the Indo-Pacific
The agreement comes at a time when competition for influence in the Indo-Pacific has intensified, particularly as regional nations seek to strengthen their defence capabilities amid growing tensions in the South China Sea and wider concerns over maritime security.
For India, the deal aligns closely with its “Act East” policy, which aims to deepen economic, diplomatic, and security partnerships with Southeast Asian nations.
During talks with Indonesian President Prabowo Subianto, Prime Minister Modi emphasized the importance of strengthening defence and maritime cooperation between the two countries, describing the agreements as a new chapter in the bilateral relationship.
The leaders also discussed enhancing collaboration in maritime security, regional stability, and economic development, areas that have become increasingly important as both nations seek to maintain a free and open Indo-Pacific.
Beyond Missiles: Broader Strategic Cooperation
The defence agreement was part of a broader package of bilateral initiatives signed during Modi’s visit.
India and Indonesia agreed to expand cooperation in:
- Critical minerals and supply chains
- Steel manufacturing and industrial development
- Agriculture and food security
- Healthcare partnerships
- Disaster management
- Cultural heritage conservation and education initiatives
A joint venture between India’s Steel Authority and Indonesia’s Krakatau Steel was also announced to establish a stainless-steel slab production facility in Indonesia.
Indonesia’s Military Modernization Drive
Indonesia has been pursuing an ambitious military modernization programme aimed at improving its maritime deterrence and air defence capabilities. The acquisition of the BrahMos system is expected to significantly strengthen the country’s coastal defence strategy.
The missile’s high speed and precision make it particularly suitable for protecting Indonesia’s vast archipelago and critical maritime routes, including strategic waterways connecting the Pacific and Indian Oceans.
Analysts believe the purchase also signals Indonesia’s desire to diversify its defence partnerships and reduce overreliance on traditional suppliers.
Growing Economic Ties
The defence deal comes as economic relations between India and Indonesia continue to deepen. Bilateral trade between the two countries reached approximately $28.15 billion in 2024-25, making Indonesia India’s second-largest trading partner within the Association of Southeast Asian Nations (ASEAN).
Officials from both countries said they would accelerate discussions on a preferential trade agreement and expand cooperation in logistics, maritime infrastructure, and energy security.
A New Era for India’s Defence Industry
The Indonesian agreement represents another major achievement for India’s indigenous defence manufacturing sector, which has increasingly focused on boosting exports under the government’s “Make in India” initiative.
With demand for advanced missile systems rising across Asia and beyond, defence experts say the BrahMos deal could pave the way for additional export opportunities and strengthen India’s position as an important player in the global arms market.
As Prime Minister Modi’s visit to Jakarta concludes, the $630 million defence package stands as both an economic and strategic victory one that deepens India’s partnership with Southeast Asia’s largest economy while reshaping the region’s evolving security landscape.
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