New Delhi: India and Indonesia are poised to finalise a $450 million BrahMos missile deal ahead of the Indonesian president, Prabowo Subianto Djojohadikusumo’s, visit as the chief guest at the Republic Day celebrations on January 26, 2025.
Multiple sources familiar with the matter have confirmed that the Indian embassy in Jakarta has received official correspondence regarding the BrahMos deal from Indonesia’s defence ministry.
Indonesia would become the second international customer for the BrahMos missile system after the Philippines, which signed a $375 million agreement with New Delhi in 2022 for three batteries of the shore-based anti-ship variant, as India Sentinels had reported.
India is simultaneously negotiating a $700 million BrahMos missiles contract with Vietnam, further expanding its defence exports portfolio.
The recent development gains additional significance as Indonesia joined BRICS on January 6, 2024, opening avenues for Indian rupee-Indonesian rupiah transactions.
Sources reveal that New Delhi has proposed financing options to Indonesia through the State Bank of India (SBI) or other nationalized banks, with work on the specifics currently underway. This alternative financing arrangement emerged after discussions with EXIM Bank proved unsuccessful.
The sources indicated that should all elements align as planned, New Delhi anticipates announcing the deal during the Republic, when the Indonesian president will be the chief guest.
However, diplomatic circles are concerned about Subianto’s reported plans to combine his India visit with a bilateral trip to Pakistan. Sources suggest that Indian officials are working to discourage this arrangement, as it could potentially impact the BrahMos deal’s prospects.
In a recent statement, the Indonesian defence minister, Sjafrie Sjamsoeddin, highlighted the significance of advanced technology collaboration, such as BrahMos, presenting “opportunities for Indonesia to learn and grow”.
Last month’s visit by the Indian Navy chief, Admiral Dinesh Kumar Tripathi, to Indonesia included substantial discussions with Indonesian leadership regarding defence cooperation.
The acquisition of BrahMos missiles would markedly strengthen Indonesia’s coastal and maritime defence capabilities, while reinforcing India’s position as an emerging defence equipment supplier in the Indo-Pacific region.
