Next week, Indian Prime Minister Narendra Modi is set to visit Indonesia for discussions with President Prabowo Subianto, with a significant emphasis on collaboration regarding critical minerals. The meeting is anticipated to result in the signing of several memorandums of understanding, touching on a variety of sectors including healthcare, pharmaceuticals, education, space, and notably, critical minerals. While some agreements are expected to be finalized during the visit, others are still being negotiated.
The two nations are striving to deepen their partnership in critical mineral processing and manufacturing. India is keen on establishing production facilities in Indonesia that would ensure a steady supply of these minerals for both domestic consumption and international exports. This initiative aligns with India’s broader strategy of strengthening its supply chains for critical minerals while reducing its reliance on external sources. Discussions are also in progress regarding potential joint ventures that would involve Indonesian partners.
Indonesia plays a pivotal role in the global supply of critical minerals, being the largest producer of nickel worldwide. This has made the country an attractive partner for nations aiming to secure stable supplies of essential minerals used in electric vehicles, batteries, and advanced technological applications. Indonesia’s policy mandates that nickel be processed domestically before it is exported, a measure designed to attract investment into its downstream industries.
This visit by Prime Minister Modi underscores India’s strategic focus on enhancing economic cooperation with Indonesia, particularly in the realm of critical minerals. By fostering closer ties with Indonesia, India hopes to expand its capabilities in mineral processing and manufacturing, thereby fortifying its economic security and advancing its technological ambitions.