Indonesia Set to Acquire BrahMos Missiles After Philippines and Vietnam, Negotiating $450 Million Loan

Indonesia’s President Subianto Prioritizes Malaysia Visit Over Pakistan Amid Defense Deal with India

AB News, New Delhi: In a significant geopolitical development, Indonesian President Prabowo Subianto has chosen to visit Malaysia rather than Pakistan, a decision influenced by India’s formal discontent. This shift comes after Subianto’s earlier plans involved a dual trip to New Delhi and Islamabad. Meanwhile, India is actively working towards providing Indonesia with a $450 million loan for the purchase of BrahMos missiles. Should this deal materialize, Indonesia would become the third South Asian country, following the Philippines and Vietnam, to acquire these advanced cruise missiles.

Working on Loan Details

According to sources familiar with the matter, Indonesia’s defence ministry has sent a formal request to India for a $450 million loan to facilitate the procurement of the jointly developed BrahMos missiles from India and Russia. Reports indicate that India is considering granting this loan through the State Bank of India or another government bank, and discussions regarding the specifics of the deal are currently ongoing.

Decision to Seek Loan from India

As reported by our partner publication, The Economic Times, the purchase of BrahMos missiles is likely to feature prominently during Subianto’s upcoming Malaysia visit, despite domestic budget constraints. The Indonesian government has recently shifted focus towards social sector projects during President Subianto’s first year in office, leading to a funding gap for the acquisition of state-of-the-art missiles. Consequently, Indonesia has opted to seek financial assistance from India for this strategic purchase.

Indonesia Set to Become the Third South Asian Buyer

During Subianto’s previous visit to India in 2020 as defense minister, discussions with his Indian counterpart Rajnath Singh prominently featured the BrahMos missiles. However, due to financial constraints faced by the prior Indonesian government amid the COVID-19 pandemic, the deal did not come to fruition. After the Philippines and Vietnam finalized their purchases from India, Indonesia is poised to become Southeast Asia’s third customer for BrahMos missiles.

Indonesia Modernizing Its Military

Indonesia has long been viewed as a potential importer of missiles, driven by its desire to modernize its military capabilities. Under the current leadership of a former general, the country is looking to enhance its defense industry, particularly given its extensive coastline and strategic requirements.

Collaboration for Sukhoi Fighter Jets

Additionally, President Subianto may seek India’s support for the maintenance of the Indonesian Air Force’s Sukhoi-30 fighter jets. Challenges concerning maintenance have arisen following the Russia-Ukraine war and subsequent Russian commitments elsewhere. Sources suggest that Indonesia is looking to India for assistance in this area, highlighting the presence of various Sukhoi models in the Indonesian Air Force, including the Su-27 and Su-30MKI/MK2.

This emerging defence collaboration between Indonesia and India marks a notable turn in regional dynamics, with potential implications for security and military partnerships in Southeast Asia.

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