In the realms of the ‘Act East’ policy actively promoted by New Delhi, Indian Prime Minister Narendra Modi has embarked on a fresh overseas tour, this time paying visits to Indonesia, Australia, and New Zealand.

However, the priority destination was Jakarta – an important partner for New Delhi and a significant player in Southeast Asia. For the fourth time running, the Indian Prime Minister began his trip to this country on 6 July. The visit aimed at further fostering bilateral cooperation based on the 2018 agreement to elevate relations to the level of a ‘comprehensive strategic partnership’, and at cementing the outcomes of the talks held in New Delhi in January 2025, which were attended by Indonesian President Prabowo Subianto, who was the chief guest at India’s Republic Day celebrations.

The Current State of India–Indonesia Cooperation

The two major regional powers, whose global roles are also on the rise, work closely together both bilaterally and within the frameworks of the G20, ASEAN, BRICS, and the Indian Ocean Rim Association. They are both invested in safeguarding their interests and security in the Indian Ocean basin and have consistently supported each other at the UN and on other international platforms. As the largest economy in Southeast Asia and a leading ASEAN member, Indonesia occupies a central place in India’s Indo-Pacific strategy.

The two countries are enjoying advanced political contacts on a regular basis and multifaceted cooperation in the military-technical and defence fields, as well as in strengthening maritime security in the region. Cooperation also embraces trade, investment, energy, agriculture, transport and digital infrastructure, healthcare, tourism, education, and culture.

In recent years, India has demonstrated growing interest, alongside its imports of coal, iron, steel, and palm oil, in procuring rare-earth minerals, particularly nickel (Indonesia’s reserves exceed 20% of the global total), cobalt, tin, bauxite, and others. India is also working towards establishing joint ventures in the extraction and processing of critical minerals, in which Indonesia is rich, and is competing in that country with China, which is actively working in the local market and successfully advancing its own economic interests there.

Outcomes of Narendra Modi’s Visit to Jakarta

Indonesia is India’s second-largest trading partner among ASEAN members (bilateral trade stands at over $30 billion, with India running a significant deficit of around $20 billion). The two leaders have set a target of levelling trade turnover up first to $50 billion and later to $100 billion in the upcoming years – a fully achievable goal given India’s existing free-trade agreement with ASEAN countries.

During the talks in Jakarta, the sides agreed to launch a mechanism for settling trade and economic transactions in local currencies, which will reduce their dependence on the US dollar and facilitate trade and investment ties. They also agreed to integrate their payment systems and introduce digital infrastructure for payments and market monitoring based on artificial intelligence.

As a result of the visit, the parties signed 20 documents covering a wide range of cooperation in defence, space, industry, agriculture, digital technology, healthcare, science, education, and culture.

Defence cooperation remains a traditional area, and new contracts were signed for the supply to Indonesia of Russian-Indian BrahMos missile systems, Indian Astra missiles, and other weaponry.

The leaders paid particular attention to agreements on joint extraction and processing of critical minerals and rare-earth elements, and on creating more resilient supply chains. In the industrial sphere, a memorandum was signed to build a joint venture in Indonesia for the production of stainless steel. In agriculture, they agreed to develop joint projects on sustainable farming and technology. India agreed to supply Indonesia with 100 tonnes of high-quality wheat seeds to enhance the country’s food security.

The sides also expanded the framework agreement on cooperation in the peaceful exploration of outer space, disaster management, modernisation of Indonesian seaports, and in healthcare, telecommunications, quantum technology, and digital infrastructure.

They agreed that the coming year would be marked as a year of cultural and educational diplomacy, with various joint events planned in both countries. In particular, with a view to upholding their shared historical and cultural heritage, India undertook to assist in the restoration of the monumental Hindu temple complex of Prambanan in Indonesia.

All in all, the visit was highly productive and successful, marked by new and substantial agreements to significantly advance bilateral strategic cooperation across a wide range of areas, which considerably solidified India’s position and influence in this economically fast-growing country.

In recognition of his great personal contribution to the steadily developing Indonesian-Indian relations, Narendra Modi was awarded, in a formal ceremony, Indonesia’s highest state honour – the Star of the Republic of Indonesia.

Anvar Azimov, Diplomat and political scientist, Ambassador Extraordinary and Plenipotentiary, Ph.D. in History, Senior Research Fellow at the Eurasian Educational Institute of MGIMO University of the Ministry of Foreign Affairs of Russia. Courtesy

https://journal-neo.su/2026/07/14/new-delhis-new-foreign-policy-initiative-in-the-indo-pacific-region/