Indonesia is looking for a bigger role for India in the modernisation of its armed forces through technology transfer, co-production and joint capability development, senior Indonesian officials said ahead of Prime Minister Narendra Modi’s three-day visit, signalling a shift towards deeper strategic and industrial cooperation between the two Indo-Pacific partners.
Speaking to ANI ahead of Prime Minister Narendra Modi’s visit to the Southeast Asian nation from July 6 to 8, Indonesia’s Charge d’Affaires in New Delhi, Yudho Sasongko said Indonesia’s military modernisation programme presents opportunities for countries capable of supporting indigenous defence manufacturing and technological collaboration.
“Indonesia is modernising its armed forces, and we welcome partners who can contribute through genuine cooperation, technology transfer and co-production rather than transactions alone,” he said, describing India’s expanding defence-industrial base as well placed to support those ambitions.
He said both countries had already committed to expanding defence-industrial cooperation and joint capability development, adding that the scope for collaboration could widen further as discussions progress between their respective defence establishments.
Asked about reports that a possible BrahMos missile deal could feature during Modi’s visit, Sasongko declined to comment on specific procurement issues. However, he said bilateral defence ties were steadily expanding through naval exercises, military exchanges, training programmes, joint research and defence technology cooperation.
On the broader strategic partnership, the Indonesian diplomat reiterated Jakarta’s support for Asean centrality and welcomed India’s continued backing for the regional grouping.
He said Indonesia viewed India not only as an important Asean partner but also as a key stakeholder in shaping the wider Indo-Pacific, while stressing that regional security architecture should continue to reinforce Asean’s central role.
Digital partnership takes centre stage
One of the key initiatives expected to gather momentum is the proposed linkage between India’s Unified Payments Interface (UPI) and Indonesia’s QRIS payment platform. Once operational, the system would enable seamless digital payments for Indian tourists visiting destinations such as Bali while facilitating easier transactions for businesses operating in both countries.
Officials said the proposed payment corridor could significantly boost tourism, trade and digital commerce, particularly benefiting the estimated 1.7 million Indian tourists who travel to Indonesia annually.
The cooperation extends well beyond payments. Indonesia has increasingly drawn from India’s experience in building population-scale digital public infrastructure, with platforms such as Aadhaar, DigiLocker, e-KYC, UPI and the Open Network for Digital Commerce (ONDC) serving as reference models for Jakarta’s own digital transformation.
Indonesia’s Open Network (ION), inspired by India’s ONDC architecture and built on the Beckn 2.0 protocol, is expected to record its first live transaction during the Modi-Prabowo summit on July 7. Officials described the project as part of Indonesia’s broader ambition to create an open digital marketplace serving more than 65 million micro, small and medium enterprises.
India’s expertise is also contributing to Indonesia’s ambitious Digital Nusantara programme, which seeks to establish an interoperable national digital infrastructure and eventually position the country as a regional exporter of digital solutions across Asean.
Beyond digital infrastructure, Indonesian policymakers have studied several Indian public welfare and governance initiatives, including the Public Distribution System, rice fortification, fertiliser subsidy reforms, AGRISTACK, the PM POSHAN school meals programme and the Jan Aushadhi affordable medicines model.
With inputs from agencies
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