India and Indonesia set to finalize USD 450 million BrahMos missile deal ahead of Republic Day
India and Indonesia are set to finalize a $450 million BrahMos missile deal ahead of Indonesian President Prabowo Subianto's visit to New Delhi for India's Republic Day celebrations on January 26.
FollowNew Delhi: India and Indonesia are expected to finalise the USD 450 million BrahMos deal ahead of Indonesian President Prabowo Subianto in New Delhi, being the chief guest at the Republic Day celebrations on January 26.
A multiple sources said that Indian embassy in Jakarta has received a letter regarding the Brahmos deal from Indonesia's defence ministry.
Indonesia would become the second foreign country to buy Brahmos missile after Philippines. New Delhi had an agreement with Manila worth USD 375 million for three batteries of the BrahMos missile’s shore-based anti-ship variant, in 2022.
Besides, India is also in talk with Vietnam to conclude a USD 700 million BrahMos missiles contract.
Indonesia joined the BRICS on January 6, 2024 that paves the way for an Indian Rupee-Indonesian Rupiah transaction.
The sources confirmed that New Delhi has offered a loan to Indonesia from either the State Bank of India (SBI) or any other nationalised banks. “Works on specifics are being done.”
The discussion on granting loan from the banks came after the talks with EXIM Bank did not materialise.
“If all aspects go according to plan, an announcement could be expected during India's Republic Day 2025, in which the Indonesian president is slated to be the Chief Guest,” they added.
It must be noted that the Indonesian President is also scheduled to visit Pakistan for bilateral. Sources indicated that India is trying to dissuade the Indonesian President's Republic Day visit clubbing with the reported bilateral visit to Islamabad.
His visit to Pakistan could impact the Brahmos deal with India, one of the sources added.
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".
It should be noted that during his visit to Indonesia last month, Indian Navy chief Admiral Dinesh Kumar Tripathi held discussion with the Indonesian leadership.
Once inducted into Indonesian forces, the BrahMos missile would significantly enhance their coastal and maritime defense capabilities.
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