Jakarta, July 7 (IANS). India and Indonesia on Tuesday signed several agreements (MoUs) to enhance cooperation in several important areas such as maritime security, defence, digital infrastructure, trade, investment, health, critical minerals and digital payments. The objective of these agreements is to give new impetus to the comprehensive strategic partnership of the two countries and strengthen economic relations.
According to an official statement, Prime Minister Narendra Modi and Indonesian President Prabowo Subianto emphasized that India and Indonesia are maritime neighbors as well as strategic partners. The two leaders reiterated their commitment to further expand defense and maritime cooperation.
Along with this, both the countries welcomed the new heights in defense cooperation through the BrahMos missile system and the Air-to-Air Missile Cooperation Agreement.
In the maritime sector, both the countries also agreed to enhance cooperation in areas such as Maritime Domain Awareness (MDA), maritime connectivity, coastal surveillance, Humanitarian Assistance and Disaster Relief (HADR), pollution control and Search and Rescue (SAR). Both leaders believe that this cooperation will strengthen peace, security and stability in the Indo-Pacific region.
India and Indonesia also welcomed the renewal of the Memorandum of Understanding (MoU) on Maritime Security and Cooperation and the implementation arrangement between Indonesia’s maritime security agency Bakamla RI and the Indian Coast Guard, the statement said.
The two countries also agreed to enhance joint production between defense industries, technology transfer, technical assistance, capacity building, shipbuilding, supply of defense equipment, establishment of maintenance and repair (MRO) facilities, defense research and development (R&D) and strengthening the defense supply chain.
In addition, the two leaders also welcomed the progress being made in the supply of medicines to military medical institutions.
Both leaders recognized that there is immense potential for comprehensive economic cooperation between India’s ‘Developed India 2047’ and Indonesia’s ‘Indonesia Amas 2045’ vision.
In this direction, he stressed the need to quickly complete the review of the ASEAN-India Trade Agreement (AITIGA), so that a balanced and mutually beneficial trading environment can be created between the two countries. After this, both the countries will move towards further deepening bilateral trade.
The two sides also agreed to hold the second meeting of the Working Group on Trade and Investment (WGTI), the fourth meeting of the Biennial Trade Ministers Forum (BTMF) and the first meeting of the Joint Economic and Financial Dialogue (EFD) in 2026.
India and Indonesia laid special emphasis on increasing cooperation in the field of critical minerals and rare earth elements. Both countries aim to develop diverse and secure supply chains to strengthen domestic manufacturing.
In this direction, both the countries signed a Memorandum of Understanding on cooperation in the field of mineral and steel supply chain technology.
The two leaders welcomed the progress made between the Reserve Bank of India (RBI) and Bank Indonesia towards early implementation of the guidelines on Local Currency Transactions (LCT). This will promote trade and investment between the two countries and further strengthen financial cooperation.
Along with this, both the leaders also welcomed the progress made towards implementing cross-border QR payment link between India and Indonesia. This will make digital payments between the two countries easier.
Adoption of India’s Open Network for Digital Commerce (ONDC) model in the field of digital economy in Indonesia and launch of Indonesia Open Network (ION) was also welcomed. It aims to increase the participation of Indonesia’s micro, small and medium enterprises (MSMEs) in the digital economy.
India and Indonesia reiterated their commitment to strengthen cooperation in the health sector, sign an implementation arrangement on skill development of health workers and enhance partnership in the field of food security and nutrition.
Both countries also emphasized on further improving maritime and air connectivity. President Prabowo Subianto welcomed India’s interest in the integrated development of Sabang Port.
Through these agreements, India and Indonesia have clearly indicated that both the countries will work together to give a new direction to defence, trade, investment, digital technology, maritime security and regional economic cooperation in the coming years.
–IANS
DBP