India set to secure $450 million BrahMos missile deal with Indonesia

India is on track for another significant defence export deal, with reports suggesting that Indonesia’s defence ministry has officially approached India regarding a $450 million BrahMos missile deal.

The request has been sent to the Indian embassy in Jakarta, Caliber.Az reports via Indian media.

Sources confirm that India is also considering offering a loan to Indonesia for the purchase, which may come from the State Bank of India or another national bank. Details of the loan arrangement are still being finalized.

Initially, the EXIM Bank of India was expected to handle the loan process, but those plans fell through, sources say.

Indonesia’s decision to join the BRICS group on January 6, 2024, further adds weight to the deal. As a member of the BRICS — an alliance that includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the UAE — Indonesia is now positioned to conduct transactions in Indian Rupees and Indonesian Rupiahs, creating new opportunities for economic cooperation.

Indications about the BrahMos deal have been hinted at by various Indonesian officials, including the country’s ambassador to India. However, the potential impact of Indonesian President Prabowo Subianto’s planned visit to Pakistan alongside his Republic Day visit to India has raised concerns. Some insiders speculate that the visit to Islamabad could complicate the BrahMos deal, and New Delhi is reportedly attempting to dissuade Subianto from combining the two visits.

If the deal proceeds as planned, an official announcement may come during India’s Republic Day celebrations on January 26, where President Subianto is expected to be the chief guest.

This development follows India’s successful first major defence export deal with the Philippines, which received the first batch of BrahMos supersonic cruise missiles in April 2024. The Philippines had signed a $374.96 million contract with India in January 2022 for the purchase of shore-based anti-ship missile systems, including three missile batteries with a range of 290 kilometres and a speed of 2.8 Mach, or three times the speed of sound.

By Tamilla Hasanova