India is contemplating a $450 million deal to sell Russian-backed BrahMos supersonic cruise missiles to Indonesia as the Southeast Asian nation seeks to enhance its defense capabilities, according to sources familiar with the matter.
Southeast Asian nations are modernising and bolstering their militaries as the South China Sea remains a flashpoint with an assertive China and President Donald Trump back in the White House | Photo: Bloomberg
The sale is expected to be announced as soon as this week, coinciding with Indonesian President Prabowo Subianto's official visit to India. Prabowo will also be a special guest at Sunday’s Republic Day celebrations. However, the sources, who requested anonymity due to the confidential nature of the discussions, cautioned that the financing of the deal remains a significant challenge for Indonesia, given its budgetary constraints. Negotiations for funding are ongoing with India, and it remains uncertain when the deal for the missiles, which have a range of at least 380 kilometers (186 miles), will be finalized.
If the agreement proceeds, Indonesia will become the second country after the Philippines to acquire the anti-ship BrahMos missiles. As Southeast Asian nations modernize and strengthen their military forces amid tensions in the South China Sea, the growing assertiveness of China and the return of Donald Trump to the White House are key factors driving these developments.
India and Indonesia have been in discussions for roughly a decade regarding the BrahMos missile deal, which is a joint development between India and Russia. Rosoboronexport, Russia’s state-owned arms exporter, is involved in the negotiations.
Both India’s Defence Ministry and Ministry of External Affairs have declined to comment on the missile sale, as has Indonesia’s Defence Ministry.
Prior to Prabowo’s visit, Indonesia’s Ministry of Foreign Affairs announced that initial agreements in areas such as health, education, and maritime safety and security would be revealed.
Indonesia is eager to secure access to the missile technology to ensure a steady supply of spare parts and components, according to sources. Recently, India’s ambassador discussed the possibility of technology transfer with Indonesia’s Defence Minister, Sjafrie Sjamsoeddin.
The Trump administration had previously pressured Indonesia to abandon deals for Russian-made fighter jets and Chinese naval vessels, as part of Washington’s efforts to prevent its rivals from undermining U.S. military supremacy and national security.
Prabowo, a former general, had been instrumental in negotiating arms deals during his tenure as defense minister under President Joko Widodo. At that time, Indonesia scrapped deals with China and Russia to avoid damaging relations with the U.S.
As emerging markets like Indonesia aim to strengthen their economies with Trump’s return to office threatening global trade stability, Indonesia recently joined the BRICS group, which includes Brazil, Russia, India, China, and South Africa. The group positions itself as an alternative to the U.S.-led global order.
During Prabowo's visit this week, further military and maritime security cooperation between India and Indonesia is anticipated, including joint exercises and visits to Indian ports by Indonesian warships, reflecting Jakarta’s commitment to enhancing maritime security across Asia.
Several MoUs to Be Signed During Indonesian President Subianto's Visit to India
Indonesian President Prabowo Subianto's two-day visit to India, starting on Saturday, is set to revitalize bilateral relations, with both countries poised to finalize multiple agreements aimed at strengthening cooperation in various sectors.
Subianto's primary purpose for visiting is to attend the 76th Republic Day celebrations as the Chief Guest.
Indonesia is interested in acquiring BrahMos supersonic cruise missiles from India, and an announcement regarding this is expected during Subianto’s visit.
The Indonesian leader will engage in extensive talks with Prime Minister Narendra Modi on Saturday.
The discussions will cover a broad range of bilateral issues, including defense and security, trade and investment, healthcare, energy, connectivity, tourism, and people-to-people relations, according to sources familiar with the matter.
Several Memorandums of Understanding (MoUs) and announcements are anticipated during the visit.
This will mark Subianto’s first visit to India as the head of state.
He will be the fourth Indonesian president to be the Chief Guest at India’s Republic Day celebrations, following Sukarno, Indonesia’s first president, who attended India’s inaugural Republic Day in 1950.
A 352-member Indonesian marching and band contingent will participate in the Republic Day parade at Kartavya Path, making it the first time an Indonesian contingent has joined a national day parade abroad.
India-Indonesia relations have seen significant growth in recent years.
In 2018, Modi visited Indonesia, and during that trip, the two countries elevated their ties to a Comprehensive Strategic Partnership. Additionally, they adopted the Shared Vision of India-Indonesia Maritime Cooperation in the Indo-Pacific.
Modi and Subianto met on the sidelines of the G20 Summit in Rio de Janeiro on November 19.
India and Indonesia share a longstanding maritime relationship, with cultural and trade ties spanning over a thousand years.
Indonesia is a key partner in India’s Act East Policy and one of India’s largest trading partners in the ASEAN region.
In 2023, the trade volume between the two countries reached USD 29.40 billion.
Indian investments in Indonesia amount to USD 1.56 billion, spread across sectors such as infrastructure, power, textiles, steel, automotive, mining, banking, and consumer goods.
Bilateral defense and security relations have also grown steadily since the signing of a defense cooperation agreement in 2018.
Indonesia is home to about 150,000 people of Indian origin, whose ancestors migrated there in the 19th and 20th centuries.
There are approximately 14,000 Indian nationals residing in Indonesia, including entrepreneurs, engineers, chartered accountants, IT professionals, consultants, bankers, and individuals from other professions, according to official figures.
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