Indonesia, India Deepen Strategic Industrial Cooperation

RRI.CO.ID, Jakarta - Indonesia and India are expanding cooperation in several strategic industrial sectors. Indonesian Deputy Minister of Industry Faisol Riza conveyed this during a meeting with Indian Minister of State for Industry and Commerce Jitin Prasada on August 6, 2026, in Jaipur, India.

The meeting, held on the sidelines of the 10th BRICS Industry Ministers’ Meeting, discussed concrete steps to strengthen industrial ties between the two countries. The focus areas include electric vehicles (EVs), semiconductors, green industries, and digital transformation.

“We hope this meeting will further strengthen relations between the two countries while opening opportunities for industrial collaboration that are more concrete, actionable, and mutually beneficial,” Faisol said in a statement published on the Ministry’s official website on Tuesday, August 25.

This cooperation is considered highly promising because Indonesia and India both have large domestic markets and strong manufacturing bases. These conditions can help build a more integrated industrial supply chain in the Indo‑Pacific region.

Economic relations between the two countries continue to grow. In 2025, Indonesia–India trade reached USD 23.16 billion, comprising Indonesian exports of USD 18.32 billion and imports of USD 4.84 billion.

However, Indonesia’s exports of non‑oil and gas processed industrial products to India have declined in recent years. As a result, expanding market access for manufactured goods has become a key issue in bilateral discussions.

The Indian government welcomed Indonesia’s proposals to strengthen cooperation in green industries, semiconductors, and agriculture. India also raised concerns regarding import quota restrictions on certain products exported to Indonesia, which Indonesia will relay to the relevant ministries.

Indonesia also proposed expanding collaboration in the semiconductor sector to support priority industries such as electronics, automotive, telecommunications, energy, and digital transformation. Both countries also have opportunities to develop automation, artificial intelligence (AI), smart manufacturing, and data centers to enhance industrial productivity.

The meeting builds on strengthened bilateral relations following President Prabowo Subianto’s visit to India during Republic Day 2025 and Prime Minister Narendra Modi’s official visit to Indonesia in July 2026. The growing cooperation spans trade, investment, health, pharmaceuticals, downstream industries, and human resource development.

As a full BRICS member, Indonesia now has broader opportunities to strengthen industrial partnerships with India and other member countries. This collaboration is expected to boost investment, technology development, manufacturing supply chains, and the competitiveness of national industries in the global market. ***