Indonesia signs a $450 million export agreement for BrahMos missiles: The defense ministry of Indonesia reportedly formally started a $450 million agreement to purchase BrahMos missiles from India on January 11, 2025.
According to the sources, the loan to Indonesia was originally supposed to be processed by the EXIM (Export-Import) Bank. But this never came to pass.
It is important to remember that on January 6 of last year, Indonesia became a member of the BRICS, an intergovernmental organization made up of ten nations. Transactions between the Indian Rupee and the Indonesian Rupiah are made possible by Indonesia’s admission into the BRICS (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates) alliance.
In the midst of regional tensions, especially with regard to China’s assertiveness in the South China Sea, Indonesia is looking to strengthen its military capabilities. In a letter to the Indian embassy in Jakarta, the Indonesian government made clear its intentions. Furthermore, it has been reported that India is providing a loan to enable this acquisition, possibly via the State Bank of India or other domestic banks.
In terms of defense cooperation, this agreement represents a major milestone for both countries. After the Philippines, which previously inked a deal worth about $374 million, Indonesia will be the second nation in Southeast Asia to acquire the BrahMos missile system. Because of its reputation for accuracy and speed, the BrahMos missile is an essential tool for Indonesia as it updates its armed forces.
Indonesia’s military capabilities will be greatly enhanced by the purchase of BrahMos missiles, enabling it to better protect its territorial integrity, especially in the South China Sea, where tensions with China have been rising. This shift could change the balance of power in Southeast Asia by making Indonesia more assertive in regional security issues.
The agreement might start a regional arms race, which would force neighboring nations to improve their military prowess in retaliation. Regional militarization may increase as a result of pressure on nations like Malaysia and Vietnam to acquire cutting-edge weapons in order to preserve their strategic deterrence against Indonesia’s improved military capabilities.
The Association of Southeast Asian Nations’ (ASEAN) dynamics may change as a result of Indonesia’s growing military might. Even though ASEAN encourages cooperation and collective security, a single member’s arms buildup could cause tensions or divisions among the other members, making diplomatic relations and joint security initiatives more difficult.
This agreement highlights Indonesia’s expanding defense cooperation with India and suggests a possible change in Indo-Pacific alliances. Their alliance may result in increased military collaboration and combined drills as both countries work to offset China’s influence, strengthening their strategic alignment even more.
China might view Indonesia’s acquisition of cutting-edge missile technology as a threat, which could exacerbate regional tensions. China may respond to this with more military posturing, such as naval exercises and operations close to Indonesian waters.
