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Pm State Visit to Indonesia/India Indonesia relationship and key outcome- (UPSC-RAS)

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1.Indonesia's Highest Civilian Honour to PM Modi

  • PM Modi was conferred Indonesia's highest civilian honour the Bintang Adipurna of the Republic of Indonesia ,in recognition of PM  contribution to strengthening bilateral ties and fostering closer cooperation between the two countries.

20 Key Outcomes Sector-Wise

1. Defence the centrepiece

  • In a major defence breakthrough, India and Indonesia inked a pact for the supply of BrahMos supersonic cruise missiles to the Indonesian military, marking a significant
  • Air-to-Air Missile (Astra) Cooperation Agreement - Boosts India's defence exports and Make-in-India for the world. Astra beyond-visual-range air-to-air missiles can be integrated on Russian-made Sukhoi fighter jets operated by the Indonesian Air Force .

2. Maritime Security-

  • Extension of MoU on Maritime Safety and Security Cooperation: Strengthens cooperation between Coast Guards of the two countries. Improves coordination in maritime domain awareness, search and rescue, and capacity building. Promotes safety and freedom of navigation in the Indo-Pacific.
  • India and Indonesia to jointly develop Sabang Port which overlooks the Strait of Malacca and is 100 miles away from India's Great Nicobar Port project. The

3. Critical Minerals & Steel

  • MoU between NFTDC, Midwest Ltds., and PT PERMINAS on development of rare earth magnets: Advances cooperation in rare earths and critical minerals. Diversification of supply chain in rare earths and critical minerals.
  • Strategic Joint Venture between Steel Authority of India (SAIL) and PT Krakatau Steel for establishment of a Stainless-Steel Slab manufacturing facility in Indonesia  advances joint production and access to technology; promotes job creation; adds to industrial development and Viksit Bharat goals.

4. Space

  • Extension of Framework Agreement on Cooperation in Exploration and Uses of Outer Space for Peaceful Purposes: Promotes joint research, technology sharing and capacity building. Reinforces a three-decade-long space partnership.

5. Education

  • IIM Bangalore will establish its first overseas campus in Jakarta at Singhasari SEZ creating new opportunities for management education across Indonesia and the ASEAN region.

6. Digital & Technology

  • Agreements cover cooperation in telecommunications, artificial intelligence, digital public infrastructure, research, innovation and emerging technologies  reflecting the two countries' focus on future-ready economic collaboration.
  • In a big endorsement of India's election management model, India to support development of Indonesia-specific EVMs (Electronic Voting Machines).

7. Culture & Heritage

  • India's assistance for conservation and restoration of Prambanan Temple Complex, Yogyakarta — 'Vikas bhi Virasat bhi': Advances preservation of shared heritage. Strengthens India's cultural diplomacy and showcases its expertise in heritage conservation and preserving shared civilisational heritage.

8. Agriculture & Health

  • India pledged to supply high-quality wheat seeds to support Indonesia's food security and strengthen collaboration in sustainable agriculture. The two nations also expanded cooperation in healthcare through regulatory partnerships and workforce training.

9. Disaster Management

  • MoUs on disaster management and supply chain management of steel were also signed.

Strategic Significance -Key Analytical Points-

  1. BrahMos as diplomatic tool: The deal marks a significant expansion of India's defence exports and is expected to deepen strategic ties with Southeast Asia's largest economy amid growing competition with China for influence in the Indo-Pacific.
  2. Sabang Port: Joint development of Sabang Port which overlooks the Strait of Malacca, 100 miles from India's Great Nicobar project creates a strategic maritime corridor at the entry point of the Indian Ocean from Southeast Asia.
  3. Critical minerals: Indonesia is the world's largest nickel producer. The SAIL-Krakatau Steel JV and rare earth magnet cooperation directly address India's supply chain security needs for EVs and semiconductors.
  4. IIM Bangalore campus: India's first IIM overseas campus  signals India's ambition to project educational soft power across ASEAN.
  5. EVM cooperation: Indonesia is the world's third-largest democracy. India helping Indonesia develop its own EVM system is significant democratic diplomacy.