India Indonesia defence pact spans Astra, BrahMos and Sabang Port

The India Indonesia defence pact took clearer shape in Jakarta on Tuesday, with New Delhi and Jakarta moving to expand missile cooperation, jointly develop a port near the Strait of Malacca, and build supply chains for critical minerals. The understandings were reached during Prime Minister Narendra Modi's talks with Indonesian President Prabowo Subianto at the Istana Merdeka.

It is Modi's fourth trip to Indonesia and his first bilateral visit since 2018. The three-day programme runs from 6 to 8 July.

Sources describe the defence understanding as an overarching agreement covering additional BrahMos supersonic cruise missiles and the indigenous Astra air to air missile, with a formal contract to be inked later.

Astra and BrahMos anchor the India Indonesia defence pact

India and Indonesia are advancing towards procuring the Astra missile, the beyond visual range weapon built by the Defence Research and Development Organisation for the Indian Air Force and Navy. Sources tie the interest to Indian missile performance in Operation Sindoor.

Bharat Dynamics Limited, which builds the Astra, is expected to integrate the missile with Indonesia's Su-30 fighters. The Mk-1 version already in service with the IAF has an engagement range in the region of 80 to 110 kilometres. A longer range Astra Mk-2 is currently in development.

Jakarta is also set to expand its BrahMos inventory. Indonesia signed on to the missile earlier this year, joining the Philippines and Vietnam among the system's export customers, and India is expected to supply further batteries.

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Critical minerals and the supply chain question

The economic centrepiece is an agreement on critical minerals. India will invest in manufacturing steel, nickel and rare earth permanent magnets in Indonesia, a segment where Chinese firms hold a commanding position.

Why the mineral deal matters to Indian industry

Indonesia holds large nickel reserves that feed battery and electric vehicle production. For India, processing capacity abroad offers a hedge against supply concentration in rare earth magnets, a chokepoint that has troubled defence and automotive manufacturers at home.

Sabang Port and the Malacca approach

India and Indonesia agreed to jointly develop Sabang Port at the northern tip of Sumatra. The port overlooks the Strait of Malacca and sits roughly 100 miles from India's Great Nicobar project.

A joint task force is to handle port infrastructure and improve connectivity between the Andaman and Nicobar Islands and Aceh. Talk of a Sabang Nicobar corridor has circulated for years without moving. This is the latest attempt to put substance behind it.

Support for Indonesia specific EVMs

Away from the hardware, India agreed to help Indonesia develop country specific Electronic Voting Machines. Sources cast the arrangement as an endorsement of India's election management model.

India and Indonesia elevated ties to a Comprehensive Strategic Partnership in 2018. Prabowo was chief guest at India's last Republic Day.