By Stanley Widianto and Sakshi Dayal
JAKARTA, July 7 (Reuters) - Indonesia and India have signed a deal on the BrahMos cruise missile system, the Indonesian presidential palace said on Tuesday after a meeting of their two leaders.
Indian Prime Minister Narendra Modi met President Prabowo Subianto as part of his two-day visit to Indonesia, his first trip to the Southeast Asian country since 2023.
BrahMos, an India-Russia joint venture missile manufacturer, and Indonesia's defence ministry signed a contract for the BrahMos missile defense system, according to an announcement in Jakarta, which provided no details.
Reuters reported earlier on Tuesday that India will supply the BrahMos cruise missile system and the Astra air-to-air missile to Indonesia, citing an Indian government official.
In 2023, BrahMos said it was in advanced discussions with Indonesia on a deal worth between $200 million and $350 million for its missile systems. It has already signed deals with neighbours Vietnam and the Philippines.
Separately, Indonesia's Republikorp, a defence private holding company, and India-based defence company Bharat Dynamics signed an agreement on air-to-air missiles, the palace announced.
The two countries also signed memorandums of understanding for strengthening supply chains in critical minerals and steel, as well as agriculture.
Steel Authority of India and Indonesia's Krakatau steel will also establish a joint venture for stainless steel slab making in Indonesia.
"We're two of the largest democracies in the world," Prabowo said alongside Modi. "Partnerships between us will bring benefits to the region."
India and Indonesia will accelerate preferential trade agreement talks, Prabowo said.
Modi said the two countries will work on promoting maritime safety and security in the Indian Ocean.
Neither leader mentioned the BrahMos deal in their remarks.
Prabowo met Modi in New Delhi last year, where they signed a wide range of agreements.
Modi is set to leave for Australia and New Zealand on Wednesday.
(Reporting by Stanley Widianto in Jakarta and Sakshi Dayal in New Delhi; Additional reporting by Ananda Teresia; Editing by Martin Petty)
