Indonesia initiates deal for purchase of BrahMos Missile worth INR 4000 Crores
Indonesia is the 15th largest country with geographical area of 1904 504 Sq Km and it has the 6th largest Exclusive Economic Zone of 6159032 Sq km.
India the 8th largest with 3287363 Sq km of land mass has EEZ of 2305143 Sq km. Population wise India is at number one with 140 Crores while Indonesia is at number four with 28.5 crores.
Coming to GDP, Vide Purchasing Power Parity India is at number 3 with GDP of 16024460 International Dollar while Indonesia is at 8th place with GDP of 4661542.
Indonesia has emerged as one of the rapidly rising economy.Now Indonesia is trying to enhance its military capabilities amid regional tensions, particularly regarding China’s assertiveness in the Natuna Sea.
The Indonesian government has communicated its intent to purchase BRAHMOS missiles and India is reportedly offering a loan to facilitate this purchase, potentially through the State Bank of India or other national banks.
On January 11, 2025, it was reported that Indonesia’s defence ministry has formally initiated a INR 4000 Crores deal to acquire BrahMos missiles from India.
As per the sources, the EXIM (Export-Import) Bank was initially scheduled to process the loan to Indonesia. However, this did not materialise.
Indonesia had in January 2024 joined the BRICS, an intergovernmental organisation consisting now of 10 countries namely Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. So Indian Rupee-Indonesian Rupiah transactions will now be a smooth affair.
This deal will be a significant step for both nations in terms of defence collaboration. Indonesia will become the second Southeast Asian country to procure the BrahMos missile system, following the Philippines, which previously purchased BRAHMOS approximately worth INR 3200 Crores. The BrahMos missile is known for its speed and precision, making it an important asset for Indonesia modernization of its military forces.
The acquisition of BrahMos missiles will thus significantly bolster Indonesia’s military capabilities, allowing it to better defend its territorial integrity, particularly in the Natuna Sea where tensions with China have been escalating. This development may lead to a more assertive Indonesian posture in regional security matters, potentially balancing of power in Southeast Asia.
The deal could also prompt neighbouring countries to enhance their own military capabilities to defend their interests in the Natuna Sea / West Phillippines Sea.
Countries like Malaysia and Vietnam will also like to procure advanced weaponry to maintain their strategic deterrence against China’s interference in the Natuna Sea.
Association of Southeast Asian Nations (ASEAN) ASEAN promotes collective security and cooperation, and an arms like BrahMos will surely lead to more confidence among member states, fostering closer diplomatic relations and collaborative security efforts.
This deal underscores not only Indonesia’s growing defence ties with India but that of ASEAN also, signalling a potential shift in alliances within the Indo-Pacific region.
As both nations seek to counterbalance China’s influence, their partnership could lead to deeper military cooperation and joint exercises, further solidifying their strategic alignment.
The acquisition of advanced missile technology by Indonesia will certainly have a sobering effect on China, potentially make it rethink on its arms supply to Pakistan.
This will lead to less military posturing by China in the Himalayas and less naval operations and military exercises in Natuna Sea.
