India is in the final stages of a major deal worth $450 million to export its BrahMos supersonic cruise missiles to Indonesia, inching closer to securing a foothold in the global defence exports market. The potential signing of the contract is scheduled to take place during the Indonesian President’s visit to India for Republic Day. It is part of Indonesia’s efforts to upgrade its defence capabilities and address regional security issues, such as those posed by sea threats in the Indo-Pacific region.
The Indo-Russian BrahMos missile is known as the world’s fastest supersonic cruise missile, capable of being launched from land, sea, and air platforms. Indonesia, with its vast maritime boundaries and strategic interests in important sea lanes such as the Malacca Strait, considers BrahMos crucial for developing its coastal and naval defences to ward off possible incursions, especially in light of developments in the South China Sea.
The deal is Indonesia’s second high-value purchase of the BrahMos system in 2022, following a previous $375 million deal signed by the Philippines. The deal not only projects India’s rise as a reliable provider of cutting-edge defence technologies but also underlines the burgeoning Indo-Indonesian relations, with both countries enhancing strategic cooperation in defence and regional security. A key feature of this deal is that India has offered to finance it with a line of credit through the State Bank of India, thereby enabling Indonesia’s purchase while strengthening financial ties between the two nations.
The talks over the sale of BrahMos to Indonesia had been ongoing for a few years, with issues such as technology transfer and sustainable maintenance, which ensures the supply of spares in the long run, despite sanctions or other punitive measures cutting off access, cropping up. The partnership also reflects India’s desire, under the Make in India campaign, for a higher focus on defence exports, with new capacities being established at facilities such as its recently inaugurated BrahMos manufacturing unit in Uttar Pradesh, which will be able to produce 100 missiles per year.
India and Indonesia have discussed collaborating on defence in various ways, beyond the missile deal. For example, they have discussed equipping Indonesian naval ships with BrahMos missiles and providing Indonesia with additional defence equipment, such as coastal radars and maintenance support for its Russian-made fighter jets. This suggests that they are open to collaborating in various ways. The $450 million BrahMos missile deal with Indonesia demonstrates India’s increasing role in Indo-Pacific defence. It also strengthens Indonesia’s deterrence capabilities and demonstrates how the two democracies are growing closer in terms of defence and geopolitics in a region that is crucial to both countries.