Indonesia May Buy BrahMos Supersonic Missiles From India In $450 Million Deal – OpEd

By

In all probability, India is heading for another major defence export deal. According to sources privy to the matter, Indonesia’s defence ministry has sent a letter regarding a US$450 million BrahMos deal to the Indian embassy in Jakarta, The New Indian Express newspaper reported..

Highly placed sources confirmed that India is also offering a loan to Indonesia from either the State Bank of India or any other Indian national banks. The specifics regarding this are being worked out, according to the article.

As per the sources, cited in the article, the EXIM (Export-Import) Bank was initially scheduled to process the loan to Indonesia. However, this did not materialise. Sources have revealed that discussions also underway to extend a loan to Indonesia possibly through the State Bank of India or other national bank.

It is pertinent to note that Indonesia had joined the BRICS, an intergovernmental organisation consisting of 10 countries, on January 6 last year. Indonesia’s entry into the BRICS — which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates — paves the way for Indian Rupee-Indonesian Rupiah transactions.

If it materializes, Indonesia would become the second ASEAN country after the Philippines to buy the precision strike with a 290 kilometer range.

According to the Times of India newspaper, the BrahMos deal has been in the works for a longtime, with Indonesian defence ininister (Prabowo Subianto) discussing the deal with his Indian counterpart Rajnath Singh during a visit to New Delhi in July 2020.

“There are some budgetary constraints, but discussions have move forward towards conclusion of the BrahMos deal new,” the Times of India reported quoting one source as saying. 

According to the Indian Defence Research wing,  quoting the sources close to the development, Indonesian Ministry  of Defence has dispatched a formal letter, indicating their interest in the $450 million deal for the BrahMos missiles. 

India has stepped up discussions on export of BrahMos to other Southeast Asian countries after signing a $375 million deal to supply anti-ship coastal batteries to the Philippines in January 2022, with an eye on Chinese aggressive bevhaviour in the South China Sea.

According to the Times of India, apart from the BrahMos missiles, which have been developed jointly with Russia, India also plans to sell the indigenous Akash air defence missile systems, which can intercept hostile aircraft, helicopters, drones and subsonic cruise missiles at range of 25-km, to countries like the Philippines, Indonesia and Vietnam.

The potential deal comes at a time when India actively producing its defence exports, with BrahMos missile system, a joint venture between India and Russia, being one of its flagship products. The BrahMos has already seen export success notably with the Philippines making India’s entry into the international arms market as a supplier of advanced weaponry.

The deal with Indonesia is particularly significant due to the geopolitical dynamics in Southeast Asia, where nations are keen to bolster their defence capabilities amid regional tensions, especially maritime disputes.

India and Indonesia are maritime neighbours and strategic partners. Both cooperate in maritime security.

The BrahMos known for its speed, precision and versatility, could serve as a strategic asset for Indonesia, enhancing its naval coastal defense capabilities.

Indian company that produces BrahMos missiles recently took part in a defence exhibition in Jakarta.  

Indications about the BrahMos deal have been given by several senior officials of Indonesia, including the country’s ambassador to India. However, the Indonesian President Prabowo Subianto’s reported visit to Pakistan along with his India visit on Republic Day this year, adds a new dynamic and complexity to this developing strategic calculus.

Prabowo is the chief guest at this year’s Republic Day celebrations, which will be held on Jan.26 in New Delhi. During his India visit, the missile deal will be announced.

The negotiations between India and Vietnam have been going on for a $700 million BrahMos missile deal. Vietnam wants to protect its territory using BrahMos missiles. It has a overlapping claim with China in the South China Sea. Malaysia is also interested in purchasing BrahMos. Because its neighbour Indonesia wants to buy BrahMos.

Veeramalla Anjaiah

Veeramalla Anjaiah is a Jakarta-based senior journalist and the author of the book “Azerbaijan Seen from Indonesia

Leave a Reply

Your email address will not be published. Required fields are marked *