The two countries signed nearly a dozen agreements to expand cooperation across critical minerals, technology, food security, medicines, maritime security, and other strategic sectors.
Prime Minister Modi arrived in Jakarta on Monday with a red-carpet welcome, marking the first leg of his three-nation tour aimed at strengthening trade and security cooperation under the framework of the India-Indonesia Comprehensive Strategic Partnership established in 2018.
As part of efforts to enhance defence ties, Indonesia has decided to procure India's BrahMos missiles for its military. Indonesia has also decided to import India's air-to-air Astra missiles following the weapon system's performance during Operation Sindoor.
India and Indonesia also agreed to strengthen critical mineral supply chains, with India deciding to invest in the manufacturing of steel, nickel, and rare earth permanent magnets in Indonesia.
The two nations further agreed to jointly develop the strategically important Sabang port, which overlooks the Strait of Malacca and is located 100 miles from India's Great Nicobar port project.
"The Comprehensive Strategic Partnership we forged in 2018 is taking a new flight today. We are taking important steps forward in every sector -- development, security, technology, culture, and education," Modi said in his media statement after the talks.
"I am confident that a golden chapter of India-Indonesia partnership begins today," he added.
The Prime Minister said increasing mutual trust between the two nations is strengthening bilateral defence, security, and maritime cooperation.
Modi said India and Indonesia have reached an agreement to enhance defence exchanges, disaster management cooperation, and industrial collaboration.
He also announced the decision to establish a campus of the Indian Institute of Management-Bangalore in Indonesia.
"We are delighted that India's UPI is set to integrate with Indonesia's payment system. This will boost both ease of doing business and ease of travel," Modi said.
The two sides also decided to expand cooperation in the blue economy, maritime trade, and port development.
During the discussions, Modi and Prabowo also reviewed several global challenges, including the situation in West Asia.
"In this era of global turmoil, India believes that the role of dialogue and diplomacy has become more important than ever before," Modi said.
The agreements mark a significant expansion of India-Indonesia cooperation, with defence, maritime connectivity, technology, and economic security emerging as key pillars of the strengthened strategic partnership.
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