Next week, Indian Prime Minister Narendra Modi is set to travel to Indonesia for discussions with President Prabowo Subianto, with a strong emphasis on cooperation in critical minerals. This visit aims to enhance bilateral relations by focusing on several key areas including healthcare, pharmaceuticals, education, and space. Ambassador Sandeep Chakravorty has indicated that while some memorandums of understanding are anticipated to be signed during Modi’s visit, others are still in the negotiation phase.
India is keen on deepening its collaboration with Indonesia to boost the processing and manufacturing of critical minerals. The envisioned partnership involves setting up production facilities in Indonesia, ensuring a stable supply of these minerals for both Indian markets and international exports. The talks also include possible joint ventures with Indonesian companies, aiming to leverage Indonesia’s position as a leading nickel producer.
Indonesia’s status as the world’s largest nickel producer makes it a valuable partner for nations aiming to secure critical minerals essential for electric vehicles, batteries, and other advanced technologies. The Indonesian government requires that nickel be processed domestically prior to export, a policy designed to stimulate investment in local downstream industries.
This visit underscores India’s broader strategic efforts to fortify its critical mineral supply chains and lessen reliance on external sources. By strengthening economic ties with Indonesia, India seeks to ensure a more secure and diversified access to vital resources, aligning with its goals of enhancing economic cooperation and resilience in the sector.