India, Russia, and Indonesia have reached an agreement on the pricing for a $450 million deal to supply BrahMos cruise missiles to the Indonesian armed forces, according to sources familiar with the matter. This development comes ahead of Indonesian Defence Minister Prabowo Subianto’s visit to New Delhi, where he will attend the Republic Day celebrations as the chief guest on January 26.
The BrahMos missile, a joint venture between India and Russia, has been under negotiation between New Delhi and Jakarta for over seven years. Russia’s Rosoboronexport, the state agency overseeing arms exports, has played a key role in the discussions due to its stake in approving all BrahMos deals. While the agreement on pricing marks a major milestone, several formalities and financing arrangements remain pending. The finalization of the deal could take several more months, the sources indicated.
Should the deal go through, Indonesia would become the second foreign customer of the BrahMos missile, following the Philippines, which signed a $375 million agreement in 2022 to acquire three batteries of the weapon. This would further bolster India’s ambitions to establish itself as a key exporter of advanced defense equipment.
Overcoming Challenges and Expanding Cooperation
Negotiations over the BrahMos deal faced delays due to several factors, including the Covid-19 pandemic and Indonesia’s insistence on technology transfer. Jakarta has emphasized the need for a sustainable supply of spares and components, a concern that emerged after other buyers of Russian military hardware faced challenges due to disruptions caused by the ongoing Russia-Ukraine conflict.
India and Indonesia have also explored additional defence collaborations. In 2018, a team from BrahMos Aerospace assessed the feasibility of integrating the missile system into Indonesian warships at the PT PAL shipyard in Surabaya. Other offers from India include coastal defence radars, marine-grade steel, and servicing for Indonesia’s fleet of Russian-made Su-30 fighter jets.
Strengthening Maritime Security Ties
Under former President Joko Widodo, Indonesia enhanced its naval collaboration with India, including joint exercises and increased port visits to strengthen maritime security in the Indian Ocean region. Defence Minister Prabowo Subianto, a former special forces general, is expected to continue prioritizing maritime and military cooperation with India.
TRADE TECH | China’s Chip Imports Surge Before US Tightens Export Controls on Semiconductors
