New Delhi: Prime Minister Narendra Modi’s State Visit to Indonesia from July 6 to 8 has pushed India-Indonesia ties into a wider strategic frame, covering
defence, maritime security, digital payments, trade, telecom, space and critical minerals. The visit came at the invitation of Indonesian President Prabowo Subianto and followed Prabowo’s India visit in January 2025 as Chief Guest for India’s 76th Republic Day.
The two leaders held talks at Istana Merdeka in Jakarta on July 7. The discussions covered almost everything that matters in modern geopolitics, from ports and supply chains to cyber security and rare earths. For India, Indonesia is not just another ASEAN partner. It sits close to key sea routes and matters deeply to any Indo-Pacific calculation.
Selamat datang di Indonesia, Yang Mulia Perdana Menteri India Narendra Modi. 🇮🇩🤝🇮🇳 pic.twitter.com/OP9brTLr3f
— Sekretariat Kabinet (@setkabgoid) July 7, 2026
Defence and maritime ties
A major focus of the visit was defence cooperation. The joint statement noted cooperation on the BrahMos Missile System and an Air-to-Air Missile Cooperation Agreement. Reuters reported that the two sides signed agreements covering defence, agriculture and critical minerals, including a BrahMos deal estimated at around $630 million, which is about ₹5,544 crore at ₹88 per dollar.
The leaders also discussed maritime domain awareness, coastal surveillance, search and rescue, port calls and joint exercises. This matters since both countries watch the Indo-Pacific closely, where sea lanes, trade routes and security worries are now linked.
Trade, minerals and digital links
India and Indonesia agreed to deepen work on critical minerals and rare earths. This is a big business issue now, since these materials are needed for batteries, electronics, defence systems and clean energy supply chains.
The two sides also welcomed progress on local currency transactions between the Reserve Bank of India and Bank Indonesia. Cross-border QR payment linkage was another key point, with both countries seeing it as a way to support MSMEs, tourists and students.
A telecom MoU was also concluded to support cooperation in telecom technologies and digital connectivity.
Culture and space
The visit had a strong cultural layer too. Modi and Prabowo inaugurated the start of restoration and conservation work at the Prambanan Temple Compounds in Yogyakarta.
Space cooperation was discussed through ISRO and Indonesia’s BRIN, including support through Biak tracking facilities and future space ecosystem-level collaboration.
India and Indonesia want the relationship to move beyond ceremonial ties and into practical cooperation across defence, digital economy, trade and the Indo-Pacific.
