Defence, critical minerals on agenda as Modi arrives in Indonesia
India's highest executive undertook a three-nation tour beginning in Jakarta, Indonesia, meeting President Prabowo Subianto for bilateral talks.
Discussions centred on three pillars: trade and investment, defence cooperation (including finalisation of a BrahMos cruise missile deal), and critical mineral supply-chain partnerships, particularly around nickel.
The visit is set to be followed by engagements with Australia and New Zealand, forming part of a broader Indo-Pacific diplomatic push.
The two countries have a Comprehensive Strategic Partnership (elevated in 2018), with bilateral trade reaching approximately US$38.84 billion in 2023 against a shared target of US$50 billion.
India's Act East Policy and the Indo-Pacific Framework
India's Act East Policy, launched in 2014 (evolving from the earlier Look East Policy of 1992), prioritises deeper engagement with Southeast and East Asian nations across economic, strategic, and civilisational dimensions. Indonesia is central to this framework: it is the largest archipelagic nation in the world, controls the Lombok and Malacca Straits, and is the chair of ASEAN's 2023 summit. India and Indonesia elevated their bilateral relationship to a Comprehensive Strategic Partnership in 2018, which includes a "Shared Vision of Maritime Cooperation in the Indo-Pacific" — an early bilateral articulation of the Indo-Pacific concept that predates QUAD's formalisation.
Key Details
- Formal India-Indonesia diplomatic relations were established in 1951; India supported Indonesia's independence from Dutch colonial rule.
- Indonesia is India's second-largest trading partner in ASEAN.
- The bilateral Economic and Financial Dialogue (EFD) was jointly inaugurated in July 2023.
- Indonesia is the world's largest nickel producer; India has 100% import dependency for processed nickel.
The visit operationalises the Comprehensive Strategic Partnership's strategic and economic pillars — securing nickel supply chains and advancing defence cooperation in the Indo-Pacific.
Critical Minerals and India's Supply-Chain Vulnerability
Critical minerals are naturally occurring substances essential for clean energy transitions, defence manufacturing, and digital technologies. India's National Critical Mineral Mission (NCMM), backed by ₹34,000 crore, targets domestic exploration, overseas acquisition, recycling, and R&D across minerals critical for EV batteries, semiconductors, and defence platforms. Nickel is a key component in lithium-nickel-manganese-cobalt (NMC) cathodes used in EV batteries. India currently has 100% import dependence for processed nickel despite having estimated domestic reserves of 189 million tonnes — the processing gap is driven by Chinese dominance in global mineral refining (China processes approximately 35% of global nickel supply).
Key Details
- Indonesia holds the world's largest nickel reserves and is the top global producer.
- India's National Critical Mineral Mission was announced in the Union Budget 2024–25.
- The three-tier critical minerals strategy: (1) domestic exploration, (2) overseas acquisition through KABIL (Khanij Bidesh India Ltd — a joint venture of NALCO, HCL, MECL), (3) recycling and circular economy.
- China's control of mineral processing supply chains is viewed as a strategic vulnerability for India, the US, and the EU alike.
India's interest in joint ventures with Indonesia for nickel processing directly targets the China-processing dependency — aligning with both the NCMM framework and India's broader supply-chain diversification strategy.
BrahMos Missile: India's Defence Export Flagship
BrahMos is a supersonic cruise missile jointly developed by India (DRDO) and Russia (NPO Mashinostroyeniya) under the BrahMos Aerospace joint venture, established in 1998. It operates on a ramjet engine and can be launched from land, sea, submarine, and air platforms. BrahMos (named after the Brahmaputra and Moskva rivers) has a range of approximately 290–450 km depending on the variant, and flies at speeds up to Mach 2.8–3.0. The Philippines became the first export customer (March 2022, ~US$375 million deal), making it the first BrahMos export and the first ASEAN buyer. Vietnam formally signed a BrahMos deal in 2026. Indonesia's deal (estimated ~US$450 million) would make it the third ASEAN operator.
Key Details
- BrahMos Aerospace was formed as a joint venture under the India-Russia Inter-Governmental Agreement of 1998.
- The missile's extended range (up to 450 km) was enabled after India joined the Missile Technology Control Regime (MTCR) in 2016.
- BrahMos exports are significant for India's defence export target of US$6 billion by 2029 (₹50,000 crore).
- Indonesia's BrahMos acquisition is linked to its South China Sea maritime security requirements.
The BrahMos deal's finalisation during this visit would mark a strategic milestone — deepening India-Indonesia defence ties and advancing India's defence export programme while contributing to a distributed maritime deterrence architecture in the Indo-Pacific.
- India-Indonesia Comprehensive Strategic Partnership elevated in 2018.
- Bilateral trade: US$38.84 billion in 2023; target US$50 billion.
- Indonesia: world's largest nickel reserves and top producer globally.
- India's NCMM: ₹34,000 crore allocation; joint venture vehicle is KABIL.
- BrahMos: supersonic cruise missile, speed Mach 2.8–3.0, range 290–450 km.
- BrahMos first export: Philippines, March 2022 (~US$375 million).
- Indonesia BrahMos deal estimate: ~US$450 million.
- India joined MTCR in 2016, enabling BrahMos range extension beyond 300 km for exports.
- India's defence export target: US$6 billion (≈ ₹50,000 crore) by 2029.