India-Indonesia Comprehensive Strategic Partnership Enhanced Through State Visit
Prime Minister Narendra Modi undertook a state visit to Indonesia from 6-8 July 2026 at the invitation of President Prabowo Subianto, marking a significant milestone in bilateral relations following President Prabowo's visit to India as Chief Guest for India's 76th Republic Day celebrations in January 2025. The visit included ceremonial receptions, bilateral talks at Istana Merdeka, addressing the Indonesian Parliament, and inaugurating restoration works at the UNESCO World Heritage Site Prambanan Temple Compounds.
Defence and Maritime Security Cooperation
The leaders elevated defence cooperation through agreements on the BrahMos Missile System and Air-to-Air Missile Cooperation, while renewing the Memorandum of Understanding on Maritime Safety and Security Cooperation. They concluded an Implementing Arrangement between BAKAMLA RI and Indian Coast Guard, and positioned an International Liaison Officer from Indonesia at the Information Fusion Centre-Indian Ocean region in Gurugram. Defence industrial collaboration was prioritized for joint production, technology transfer, technical assistance, capacity building, and establishing MRO facilities for similar defence platforms.
Economic and Trade Mechanisms
Both nations emphasized completing the ASEAN India Trade in Goods Agreement (AITIGA) review for a balanced trade environment and agreed to convene the 2nd meeting of the Working Group on Trade and Investment (WGTI), the 4th Biennial Trade Ministers' Forum (BTMF), and the 1st Joint Economic and Financial Dialogue (EFD) in 2026. Significant progress was made toward operationalizing Local Currency Transaction (LCT) guidelines between the Reserve Bank of India and Bank Indonesia to promote trade and investment.
Strategic Industrial Partnerships
A Memorandum of Understanding was signed between Non-Ferrous Materials Technology Development Centre (NFTDC), Midwest Ltds., and PT. Perusahaan Mineral Nasional (PERMINAS) for rare earths collaboration. Additionally, a Strategic Joint Venture between Steel Authority of India Ltd. (SAIL) and PT. Krakatau Steel will explore establishing a Stainless-Steel Slab Manufacturing Facility in Indonesia, alongside an MoU on cooperation in Minerals and Technology of Steel Supply Chain.
Financial and Digital Connectivity
The implementation of Cross-Border QR Payment Linkage between India and Indonesia was advanced to enhance transaction efficiency, strengthen financial resilience, and promote inclusive economic growth supporting MSMEs, tourism, and students. Indonesia launched the Indonesia Open Network (ION) based on India's Open Network for Digital Commerce (ONDC) architecture to increase MSME participation in the digital economy.
Sectoral Cooperation Agreements
In healthcare, an Implementation Arrangement on Professional Health Workforce Development was signed to facilitate fellowship programmes, skill enhancement, clinical training, and exchanges of health professionals. An MoU between CDSCO and BPOM on cooperation in Medical Products Regulation was concluded, with efforts ongoing for an MoU between BPOM and FSSAI on Regulatory Cooperation in Processed Food products. Cooperation was also strengthened in energy security covering LNG, green hydrogen, bioenergy, solar energy, and energy efficiency technologies.
Infrastructure Development
Indonesia welcomed India's interest in partnering on the integrated development of Sabang Port, spanning cruise and marine-tourism facilities, maritime industries including ship-repair and shipbuilding, and shore-based services supporting offshore energy activities in the Andaman Sea. The 3rd Joint Task Force Meeting on Andaman-Aceh Connectivity will be convened in the second half of 2026 to develop an implementation plan.
Multilateral Engagement
Indonesia affirmed full support for India's 2026 BRICS Chairship, with both countries committing to enhance engagement through BRICS, G20, and IORA platforms. They reiterated the need for comprehensive reform and expansion of the United Nations Security Council through inclusive, member state-driven intergovernmental negotiations.