Prime Minister Narendra Modi and Indonesian President Prabowo Subianto on Tuesday held talks at the Merdeka Palace in Jakarta, heralding a 'golden chapter' in India-Indonesia relations that will have a profound positive impact on the 21st century, according to Business-Today. The visit saw the announcement of eight agreements and several memorandums of understanding spanning defence, trade, technology, critical minerals, and cultural exchanges, marking a major step in bilateral trade policy for importers and exporters in both countries.
Defence and Maritime Security
PM Modi stated that the growing trust between India and Indonesia is strengthening defence, security, and maritime cooperation, according to Business-Today. The leaders agreed to enhance defence exchange, disaster management, and industrial cooperation. The coast guards of both nations will now work together for maritime safety and security in the Indian Ocean. Additionally, they decided to enhance mutual cooperation in the blue economy, port development, and maritime trade.
Technology, Startups and Education
India and Indonesia will share best practices in sustainable farming and agro-technology, the report stated. A major agreement was signed to strengthen cooperation among young people in artificial intelligence, telecommunications, and digital public infrastructure. The leaders also agreed to deepen collaboration between startups.
"We are delighted that India's UPI is set to be integrated with Indonesia's payment system. This will boost both the ease of doing business and the ease of travel," PM Modi said, according to Business-Today.
In a major education initiative, India will establish a campus of the Indian Institute of Management (IIM) Bangalore in Indonesia, which PM Modi said would benefit young people across the ASEAN region. The two nations also agreed to expand cooperation in the space sector through joint research, technology sharing, and capacity building.
Critical Minerals, Steel and Digital Payments
PM Modi highlighted the growing importance of resilient technology supply chains and announced a significant agreement to strengthen cooperation in the critical minerals and steel sectors, according to Business-Today. New partnerships are being forged between companies from both countries in stainless steel and rare-earth magnets. On digital payments, the planned integration of India's Unified Payments Interface (UPI) with Indonesia's payment system was welcomed by the Prime Minister.
| Cooperation Sector | Key Outcomes |
|---|---|
| Defence & Maritime | Enhanced defence exchange, disaster management, joint coast guard operations in Indian Ocean |
| Trade & Investment | Cooperation in critical minerals, steel, rare-earth magnets |
| Technology | AI, telecom, digital public infrastructure, startup collaboration |
| Digital Payments | UPI-Indonesia payment system integration |
| Education | IIM Bangalore campus in Indonesia |
| Space | Joint research, technology sharing, capacity building |
Cultural Ties and Heritage
PM Modi announced he would join President Prabowo on Wednesday to launch the conservation project for the Prambanan Temple in Yogyakarta, calling the 1,000-year-old monument a symbol of shared cultural heritage. The two countries will jointly commemorate the centenary of Rabindranath Tagore's historic visit to Indonesia as the 'Tagore-Dewantara Year of Cultural and Educational Diplomacy'. PM Modi noted that Indonesia's first Education Minister, Dewantara, was deeply influenced by Tagore.
PM Modi arrived in Jakarta on Monday for a three-day visit, his second to Indonesia as prime minister after his 2018 trip. The visit comes months after President Prabowo attended India's Republic Day celebrations as chief guest, underscoring the deepening diplomatic and economic ties between the two nations.
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