Written by: Ajai Malhotra
4 min readJul 6, 2026 06:34 AM IST
First published on: Jul 6, 2026 at 06:34 AM IST
India’s transition to electric mobility and clean energy requires secure access to critical minerals, especially nickel. The world’s largest nickel reserves lie in Indonesia, where Chinese investment has established a dominant position in downstream processing. The future of clean energy will depend as much on nickel-processing plants as on EV factories. India may have only a few years to establish a meaningful presence in Indonesia’s nickel value chain. Prime Minister Narendra Modi’s visit to Indonesia from July 6 to 8 could offer India its best opportunity to secure a place in the critical mineral value chains that will shape its energy transition and supply-chain resilience.
The visit reciprocates President Prabowo Subianto’s 2025 visit to India. It opens a six-day Indo-Pacific tour that will also take PM Modi to New Zealand and Australia. Indonesia is among India’s oldest partners in Asia. Indian cultural links with Java, Bali and Sumatra stretch back centuries, while the 1955 Bandung Conference helped lay the foundations of the Non-Aligned Movement. Today, that shared legacy finds expression in a strategic partnership spanning the Indian Ocean and the wider Indo-Pacific. The world’s largest archipelagic state, Indonesia straddles the Malacca Strait, one of the world’s busiest maritime arteries, whose western approach India guards. As Asia’s two largest democracies, their shared boundary in the Andaman Sea makes cooperation on maritime security and connectivity imperative. India’s Act East Policy, too, aligns closely with Indonesia’s maritime ambitions — Sabang port in Aceh province illustrates the strategic potential. Building on the 2018 Comprehensive Strategic Partnership, the PM’s visit aims to translate strategic convergence into practical cooperation on critical minerals, connectivity, healthcare, space, digital public infrastructure and tourism.
Indonesia also possesses cobalt, bauxite, tin and rare earths. India requires a sustained commercial presence across Indonesia’s critical-mineral value chains through joint ventures, upstream equity and mineral-processing partnerships. The strategy’s success will depend on Indian industry’s ability to match the speed of its Chinese counterparts in establishing a meaningful presence in Indonesia’s nickel value chain. If PM Modi’s Jakarta visit propels that conversation, President Prabowo’s expected visit to India for the BRICS Summit in September could provide an early opportunity to advance it.
Indonesia is India’s second-largest ASEAN trading partner, but economic ties remain below potential. India runs a trade deficit of about US$20 billion. The two governments aim to expand bilateral trade to US$100 billion by 2030.
If critical minerals represent the visit’s longer-term strategic opportunity, defence cooperation might provide its most tangible immediate outcome. Substantial progress in Jakarta towards acquiring BrahMos supersonic cruise missiles would strengthen Indonesia’s deterrent capability. Building on the BrahMos export to the Philippines, it would burnish India’s credentials as a reliable security partner for countries seeking stronger defence capabilities without becoming entangled in great-power rivalries.
China’s growing maritime assertiveness forms the strategic backdrop. Beijing’s “Nine-Dash Line” overlaps Indonesia’s Exclusive Economic Zone around the Natuna Islands. While India works through arrangements such as the Quad, Indonesia maintains close economic ties with China even as it expands maritime cooperation with India and others.
As Southeast Asia’s largest economy and a leading ASEAN voice, Indonesia has a central place in India’s Indo-Pacific strategy. The two countries share an interest in preserving freedom of navigation, maintaining regional stability and strengthening ASEAN centrality. Indonesia’s BRICS and Indian Ocean Rim Association memberships broaden the platforms through which both countries can advance shared interests.
Thanks in part to alphabetic seating at the UN General Assembly, Indian and Indonesian diplomats have for decades worked alongside one another, developing camaraderie and trust that underpins the bilateral partnership.
Connectivity is of growing importance. Limited direct flights, inadequate shipping links and restrictive visa protocols constrain ties. Initiatives linking the Andaman and Nicobar Islands with Indonesia’s Aceh Province deserve greater momentum.
PM Modi’s visit signals India’s intent to deepen engagement with one of its most consequential maritime neighbours. The two countries do not merely share an ocean; they share responsibility for preserving its stability and openness, while deepening cooperation on critical minerals and supply-chain resilience.
The writer is distinguished fellow, TERI and a former senior diplomat
Initiatives linking the Andaman and Nicobar Islands with Indonesia’s Aceh Province deserve greater momentum. 
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