On Saturday, India and Indonesia introduced steps to strengthen their partnership in areas like trade, defence, maritime security, and health. Prime Minister Narendra Modi emphasised that Indonesia is a key partner in ensuring security and maintaining a rules-based order in the Indo-Pacific region.

During talks between Prime Minister Modi and Indonesian President Prabowo Subianto, key topics included improving market access, diversifying trade, and enhancing cooperation in defence manufacturing. President Prabowo will be the chief guest at India's Republic Day parade on Sunday, marking 75 years since President Sukarno was honoured as the chief guest at India's first national day celebration. “Indonesia is our important partner in the ASEAN and Indo-Pacific region. We both are committed to maintaining peace, security, prosperity and rules-based order in this entire region,” Modi said at a media interaction with Prabowo after their talks. Speaking in Hindi, he stated, "We agree that freedom of navigation must be ensured in accordance with international laws," seemingly alluding to China's actions in the South China Sea and other nearby waterways.

In addition to highlighting New Delhi's support for his nation's independence movement, Prabowo called India a "long-time friend" of Indonesia and stated, "We consider this partnership very important, and we would like to enhance and accelerate the level of cooperation between us." The partnership will be "beneficial to global stability and regional cooperation," he added, highlighting India's position as a co-founder of the Non-Aligned Movement and in promoting the causes of the Global South.

Both leaders expressed their intention to boost trade between their countries, which was valued at over $30 billion in 2024. Modi mentioned that their discussions focused on improving market access and expanding the range of traded goods. They also agreed to enhance cooperation in areas like fintech, artificial intelligence, the Internet of Things, and digital public infrastructure.

Prabowo stated that he instructed his team to speed up processes, reduce bureaucracy, and eliminate unnecessary regulations to strengthen the economic partnership with India. In addition to improving collaboration in trade, investment, energy and health, Prabowo also sought Indian investments to help develop Indonesia’s infrastructure. Indonesia is India's second-largest trading partner in the 10-nation ASEAN group. The trade between the two countries has grown significantly, increasing from $4.3 billion in 2005-06 to $29.40 billion in 2023-24. India is now the second-largest buyer of coal and the biggest buyer of crude palm oil from Indonesia. In return, India exports refined petroleum products, commercial vehicles, telecommunication equipment, and agricultural goods to Indonesia. 

Following the approval of a bilateral defence cooperation agreement, retired general Prabowo stated that he would dispatch a high-level delegation to India to advance defence cooperation. Modi added, “To increase cooperation in the defence sector, we have decided to work together in defence manufacturing and supply chains.” Modi highlighted the importance of strengthening cooperation between India and Indonesia in areas such as maritime security, cyber security, counter-terrorism and de-radicalisation. He mentioned that a new agreement signed on Saturday between India's Coast Guard and Indonesia's Bakamla (the maritime security agency) would enhance collaboration in preventing crime, conducting search and rescue operations, and improving each other's capabilities.

Indonesia has been in long discussions with India about purchasing the BrahMos cruise missile system. Sources familiar with the matter, who requested anonymity, shared that both countries have reached a general agreement on the pricing of the deal, which is expected to be around $450 million. If the deal goes through, Indonesia will become the second international buyer of the missile, after the Philippines.

The two sides also agreed on three additional memorandums of understanding (MoUs) covering areas like health cooperation, digital development, traditional medicine and cultural exchanges. The MoU between the health ministries aims to strengthen collaboration, especially to help Indonesia address its shortage of healthcare professionals. Indonesia is in need of around 160,000 doctors and nurses and is looking to India as a possible source for these professionals. 

Modi mentioned that India is sharing its expertise in areas like health and food security with Indonesia. This includes programs like the mid-day meal scheme and the Public Distribution System. Both countries have agreed to collaborate on energy, critical minerals, science and technology, space and STEM education. They will also carry out joint exercises between their disaster management teams. In addition, he praised Indonesia's recent BRICS membership and highlighted India and Indonesia's collaboration in ASEAN, the G20, and the Indian Ocean Rim Association. “In all these forums, we will work in cooperation and coordination on the interests and priorities of the countries of the Global South,” he said.

Prime Minister Modi highlighted the long-standing cultural relationship between India and Indonesia. He mentioned that after India helped preserve the Borobudur Buddhist temple in Indonesia, it will now assist in the conservation of the Prambanan Hindu temple, a 9th-century complex in Yogyakarta and a UNESCO World Heritage site. Additionally, 2025 will be marked as the India-ASEAN Year of Tourism to encourage cultural exchanges and boost tourism between the two nations.

The first time the Indonesian military has joined a national day parade overseas, a marching troop of 352 members will join the Republic Day ceremonies alongside Prabowo. The first time the Indonesian military has joined a national day parade overseas, a marching troop of 352 members will join the Republic Day ceremonies alongside Prabowo. “We...feel very honoured that I will be the chief guest tomorrow at the Republic Day parade of India. And because the first chief guest in India’s first Republic Day parade was President Sukarno, so this is a great honour for me that I will represent Indonesia tomorrow,” Prabowo said. “I am sure that this visit will mark the new start of an accelerated programme of cooperation and friendship,” he added while inviting Modi to visit Indonesia.