Prime Minister Narendra Modi announced new India-Indonesia agreements on technology, critical minerals, digital payments, education, AI, and space cooperation during his visit to Jakarta, while highlighting stronger bilateral ties.

PM Modi Unveils New India-Indonesia Initiatives Covering AI, UPI, Space and Cultural Cooperation

Jakarta, Indonesia: Prime Minister Narendra Modi announced a series of initiatives aimed at deepening India’s strategic partnership with Indonesia, covering technology, trade, education, digital payments, agriculture, space, and cultural cooperation.

Speaking alongside Indonesian President Prabowo Subianto, Modi said the two countries have agreed to strengthen cooperation in several emerging sectors while expanding economic and people-to-people ties. He also expressed gratitude after being conferred Indonesia’s highest civilian honour, describing it as a recognition of the enduring friendship between the two nations.

India and Indonesia Strengthen Technology and Supply Chain Cooperation

Highlighting the growing importance of resilient global supply chains, the Prime Minister said both countries have reached an agreement to enhance cooperation in the critical minerals and steel sectors.

He noted that new partnerships are being established between Indian and Indonesian companies in the fields of stainless steel and rare-earth magnets, which are considered vital for clean energy technologies, electronics, and advanced manufacturing.

Modi said strengthening supply chain resilience has become increasingly important in today’s technology-driven world and that the new initiatives would support long-term industrial cooperation between the two countries.

UPI to Be Linked with Indonesia’s Digital Payment System

One of the key announcements during the visit was the planned integration of India’s Unified Payments Interface (UPI) with Indonesia’s payment system.

According to the Prime Minister, the move is expected to make cross-border digital transactions more convenient, benefiting businesses, tourists, and travellers from both countries.

He said the initiative would improve the ease of doing business as well as the ease of travel, reflecting the growing digital partnership between India and Indonesia.

New Agreements on AI, Startups and Space Cooperation

Modi said India and Indonesia have signed a major agreement to expand cooperation in advanced technology sectors, particularly for young innovators.

The agreement covers collaboration in artificial intelligence (AI), telecommunications, and digital public infrastructure. The two countries also agreed to deepen startup partnerships by encouraging greater interaction between entrepreneurs and innovation ecosystems.

In the education sector, the Prime Minister announced that Indian Institute of Management Bangalore (IIM Bangalore) will establish a campus in Indonesia. He said the institution is expected to benefit students not only from Indonesia but also from the wider ASEAN region.

The two countries also agreed to expand cooperation in the space sector through joint research, technology sharing, and capacity-building initiatives, building on decades of collaboration.

Focus on Agriculture and Sustainable Development

The Prime Minister said India and Indonesia will also exchange best practices in sustainable farming and agricultural technology.

He noted that agricultural cooperation will focus on improving productivity through innovation while promoting environmentally sustainable farming practices.

According to Modi, collaboration in agri-technology will support food security and strengthen rural development in both countries.

Cultural Partnership Receives Fresh Momentum

Emphasising the deep historical ties between the two nations, Modi announced that he and President Prabowo would jointly launch a conservation project for the Prambanan Temple in Yogyakarta.

He described the over 1,000-year-old temple as a symbol of the shared cultural heritage of India and Indonesia.

The Prime Minister also announced that both countries will jointly commemorate the centenary of Rabindranath Tagore‘s historic visit to Indonesia by observing the “Tagore-Dewantara Year of Cultural and Educational Diplomacy.”

He said the initiative recognises the influence of Tagore’s educational philosophy on Ki Hajar Dewantara, Indonesia’s first Education Minister and a key architect of the country’s education system.

PM Modi Thanks Indonesia for Highest Civilian Honour

Modi also thanked President Prabowo, the Indonesian government, and the people of Indonesia after being conferred the country’s highest civilian honour.

He said the recognition belonged to the people of India and reflected the warmth, trust, and historical friendship shared by the two nations.

The Prime Minister added that since the establishment of the Comprehensive Strategic Partnership in 2018, bilateral relations have gained new momentum across sectors including development, security, education, technology, and culture.

Why the Visit Matters

The agreements announced during the visit reinforce India’s growing engagement with Southeast Asia under its Act East Policy and strengthen strategic cooperation with one of ASEAN’s largest economies.

Enhanced collaboration in digital payments, AI, education, critical minerals, and space reflects both countries’ efforts to build resilient economic partnerships while promoting innovation and sustainable growth.

Impact on India-Indonesia Relations

The new initiatives are expected to boost bilateral trade, encourage investment, facilitate digital transactions, and create opportunities for collaboration in emerging technologies.

Educational exchanges, cultural initiatives, and space cooperation are also likely to deepen people-to-people ties and further strengthen the Comprehensive Strategic Partnership between India and Indonesia.

Conclusion

Prime Minister Narendra Modi’s visit to Indonesia marked a significant step in expanding bilateral cooperation across technology, trade, education, agriculture, culture, and space. With agreements on AI, digital payments, startup collaboration, critical minerals, and the establishment of an IIM Bangalore campus in Indonesia, both countries have outlined an ambitious roadmap for strengthening their Comprehensive Strategic Partnership while reinforcing their long-standing historical and cultural ties.

Key Takeaways

• India and Indonesia signed agreements to strengthen cooperation in AI, telecommunications, digital infrastructure, and startups.
• UPI will be integrated with Indonesia’s payment system to facilitate business and travel.
• Both countries agreed to strengthen supply chains in critical minerals and steel.
• IIM Bangalore will establish a campus in Indonesia to benefit students across ASEAN.
• India and Indonesia will jointly celebrate the “Tagore-Dewantara Year of Cultural and Educational Diplomacy.”
• The two nations also expanded cooperation in agriculture and the space sector.
• PM Narendra Modi thanked Indonesia after receiving the country’s highest civilian honour.

FAQs

What major agreements were announced during PM Modi’s Indonesia visit?

The two countries announced cooperation in AI, digital payments, startups, critical minerals, steel, agriculture, education, and space technology.

What is the significance of UPI integration with Indonesia?

The linkage will enable smoother cross-border digital payments, improving convenience for businesses and travellers.

What educational initiative was announced?

Prime Minister Modi announced that IIM Bangalore will establish a campus in Indonesia, benefiting students across the ASEAN region.

Why will India and Indonesia celebrate the Tagore-Dewantara Year?

The initiative marks the centenary of Rabindranath Tagore’s visit to Indonesia and recognises the influence of his educational philosophy on Ki Hajar Dewantara, Indonesia’s first Education Minister.