PM Modi's Indonesia Visit Set to Boost Strategic, Digital and Defence Partnership

New Delhi: Prime Minister Narendra Modi's three-day visit to Indonesia will provide a new direction to India-Indonesia bilateral strategic relations. During this visit, the two countries will deepen their partnership by expanding digital public infrastructure, payment systems, and defense cooperation. 

When will PM modi visit Indonesia?

PM Modi’s six-day visit to Indonesia, Australia, and New Zealand from 6 to 11 July is best viewed together rather than as three separate bilateral visits. During this visit, a digital payments linkage agreement will be signed between India's UPI and Indonesia's QRIS. This will make payments much easier, faster, and cheaper for the millions of Indian tourists visiting Bali and other Indonesian tourist destinations. Indian businesses doing business with Indonesia will also benefit.

What did Ministry of Foreign Affairs say?

Sources in the Ministry of Foreign Affairs indicate that Indonesia is gradually drawing inspiration from and emulating many of India's development programs. The Indian government is willing to provide full support in this regard. Indonesia's Open Network (ION) is inspired by India's ONDC model.

What is ION's first live transaction?

ION is set to conduct its first live transaction during the summit between PM Modi and Indonesian President Prabowo Subianto on July 7. It will create a highly convenient and low-cost digital marketplace for over 65 million micro, small, and medium-sized entrepreneurs.

Inspired by India's Aadhaar, UPI, DigiLocker, and e-KYC initiatives, the Indonesian government has launched the ambitious Digital Nusantara initiative. Indian companies are playing a key role in building Indonesia's next-generation digital infrastructure. The two countries are now moving beyond simply sharing models to institutional cooperation.

What is Free Nutritious Meals program?

Indonesia is also leveraging Indian government programs in the health and nutrition sector. Inspired by India's PM Poshan (Mid-Day Meal) scheme, Indonesia has implemented a free nutritious meal program. Similarly, the Jan Aushadhi model is being discussed to provide affordable medicines in rural areas. Similarly, partnerships are expanding in the defense sector.

Indonesia is working with India on defense manufacturing, technology transfer, military training, and maritime cooperation. India's experience in indigenous defense production under the Atmanirbhar Bharat initiative is opening up new opportunities for long-term cooperation. Discussions are underway on systems such as the BrahMos missile. The two countries also engage in ongoing discussions on maritime security, joint exercises, and capacity building in the Indo-Pacific region.

Metals essential for modern manufacturing

Critical minerals present a significant strategic opportunity for both countries. Indonesia has the world's largest reserves of nickel and other rare minerals, essential for electric vehicles, batteries, and modern manufacturing. Currently, most of its production is exported in raw form, with limited domestic value addition.

Like other resource-rich countries, Indonesia is now planning to enrich these minerals domestically to play a better role in the global supply chain. This could present an opportunity for India, which is engaged in ensuring the supply of such minerals.