Indian Prime Minister Narendra Modi is set to visit Indonesia next week, where he will engage in talks with President Prabowo Subianto. A significant focus of their discussions will be enhancing cooperation on critical minerals. Indian Ambassador Sandeep Chakravorty has indicated that both nations are working towards several memorandums of understanding in diverse sectors, including healthcare, pharmaceuticals, education, space, and notably, critical minerals. Some of these agreements are anticipated to be finalized during the visit, while others remain under negotiation.
India is particularly interested in strengthening its collaboration with Indonesia to advance critical mineral processing and manufacturing efforts. The envisioned partnership seeks to establish production facilities within Indonesia, ensuring a steady supply for both the Indian market and for global exports. Discussions are also ongoing regarding potential joint ventures with Indonesian partners.
As the world’s largest producer of nickel, Indonesia has emerged as a strategic ally for countries looking to secure supplies of critical minerals essential for electric vehicles, batteries, and other advanced technologies. The Indonesian government mandates that nickel is processed domestically before it is exported, thereby promoting investment in downstream industries. This approach aligns with Indonesia’s broader economic strategy to boost industrial growth and attract foreign investment.
The visit underscores India’s wider strategy to fortify its critical mineral supply chains, aiming to reduce its reliance on external sources. By expanding economic cooperation with Indonesia, India hopes to secure a more stable and diversified supply of these essential resources. This move is part of India’s broader economic agenda to enhance its manufacturing capabilities and support its burgeoning technological sectors.