India, Indonesia working on BrahMos missile deal

India, and Indonesia are working together to close millions of dollars worth Brahmos deal ahead of President Prabowo Subianto. The deal in works for sometime came up for conversation during Indian Navy chief Admiral Dinesh Kumar Tripathi’s visit to Indonesia last month. In a post, Indonesia’s defence minister Sjafrie Sjamsoeddin said, “advanced technology collaboration, such as BrahMos, was also highlighted, presenting opportunities for Indonesia to learn and grow”. The BrahMos missile, known for its speed and precision would significantly enhance Indonesia’s coastal and maritime defense capabilities. 

Sources have suggested that Indonesia’s defence ministry has sent a letter regarding a USD 450 million BrahMos deal to the Indian side. India is offering a loan to Indonesia from either SBI or any other Indian National Banks for the deal, with specifics are being worked out. EXIM Bank was initially slated to process the loan to Indonesia; however, it has not materialised.  While the conversation is underway, an expectation will be that the announcement of the deal could be made as early as Subianto’s visit scheduled for this month as he has been invited to be the chief guest at India’s Republic day.

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The deal, if concluded, would make Indonesia the second ASEAN nation after the Philippines to procure BrahMos missiles. India signed a groundbreaking $375 million deal with the Philippines in January 2022 for the supply of three batteries of the shore-based anti-ship variant of the BrahMos missile. This was India’s first major defense export contract. India and Vietnam are also close to finalizing a $700 million deal for BrahMos missiles.

The BrahMos project was initiated in 1998 and is a joint venture between India’s Defense Research and Development Organisation (DRDO) and Russia’s NPO Mashinostroyeniya. New Delhi has been actively marketing BrahMos globally, aiming to become a significant defense exporter.