Next week, Indian Prime Minister Narendra Modi is set to visit Indonesia for discussions with President Prabowo Subianto. A major point on their agenda is expected to be enhancing cooperation on critical minerals. According to Indian Ambassador Sandeep Chakravorty, the bilateral talks will cover a range of sectors, with memorandums of understanding being worked on in areas such as critical minerals, healthcare, pharmaceuticals, education, and space. While some agreements are anticipated to be signed during Modi’s visit, others are still under negotiation.
India is looking to deepen its collaboration with Indonesia to bolster the processing and manufacturing of critical minerals. The planned partnership would involve establishing production facilities within Indonesia, ensuring a steady supply for both the Indian market and international exports. Additionally, there are ongoing discussions on the possibility of joint ventures that would include Indonesian partners, aiming to solidify this strategic alliance.
Indonesia’s position as the world’s largest nickel producer makes it an attractive partner for countries seeking reliable sources of critical minerals, which are essential for the production of electric vehicles, batteries, and various advanced technologies. The Indonesian government mandates that nickel be processed domestically prior to export, thereby promoting investment in downstream industries and boosting the local economy.
This visit signifies India’s broader objective to fortify its critical mineral supply chains, thereby reducing reliance on external sources. At the same time, it aims to expand economic cooperation with Indonesia, aligning with India’s strategic interests in the region. By securing these partnerships, India seeks to ensure a stable supply of essential minerals while fostering innovation and growth in critical sectors.