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Agreement reached with Indonesia on Sabang Port, why is this special for India?

July 7, 2026 by Uma Shankar

Prime Minister Narendra Modi is on Indonesia tour. During this visit, both the countries signed many important strategic agreements in the field of defence, maritime security and critical minerals. These agreements are expected to further strengthen India’s strategic position in the Indo-Pacific region.

Under the agreement between India and Indonesia, Indonesia will purchase additional BrahMos supersonic cruise missile system in a phased manner. Earlier this year, Indonesia had decided to purchase a BrahMos coastal defense battery. Now both the countries have made a broad consensus to purchase further missile systems. The final commercial contract will be signed later.

Indonesia will get India’s ‘Astra’ missile

Both countries have also agreed to purchase Astra Mk-1 Beyond Visual Range Air-to-Air Missile. This missile will be installed in 16 Su-30 fighter planes of Indonesia. Government company Bharat Dynamics Limited (BDL) will integrate Astra missile into Indonesia’s Su-30 aircraft.

This missile is already serving in the Indian Air Force and its strike range is about 80 to 110 kilometers. At the same time, India is also developing Astra Mk-2, whose range will be around 160 kilometers.

Cooperation will increase in critical minerals

India and Indonesia have also signed an agreement on strengthening the critical mineral supply chain. Under this, India will invest in the production and processing of nickel, steel and rare earth magnets in Indonesia. This step is also considered important because China currently has great dominance in this area.

India will get strategic benefit from Sabang Port

Both countries have also agreed on joint development of Sabang Port in Indonesia. This deep water port is located in the northern part of Sumatra island of Indonesia and very close to the Strait of Malacca.

Sabang Port is about 160 kilometers away from India’s proposed Great Nicobar Transshipment Port. This port is capable of handling all types of warships and submarines. This will greatly benefit India’s maritime access and strategic presence in the Indo-Pacific region.

Relations are continuously getting stronger since 2018

India and Indonesia gave the status of Comprehensive Strategic Partnership to their relations in the year 2018. After this, both the countries had also formed a joint task force for the development of Sabang Port and increasing maritime connectivity between Andaman and Nicobar Islands and Aceh province of Indonesia.

These agreements related to BrahMos, Astra Missile, Critical Minerals and Sabang Port will not only give new heights to India-Indonesia defense cooperation, but will also further strengthen India’s strategic position in the Indo-Pacific region.

About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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