Indonesia initiates $450 million BrahMos missile export deal: Report

New Delhi: Indonesia’s defence ministry has formally initiated a $450 million deal to acquire BrahMos missiles from India. A news report citing sources has claimed. It said, the EXIM (Export-Import) Bank was initially scheduled to process the loan to Indonesia. However, this did not materialise.

As per the sources, the EXIM (Export-Import) Bank was initially scheduled to process the loan to Indonesia. However, this did not materialise.

Indonesia joined the BRICS, an intergovernmental organisation consisting of 10 countries, on January 6 last year. Indonesia’s entry into the BRICS — which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates — paves the way for Indian Rupee-Indonesian Rupiah transactions

This development comes as Indonesia seeks to enhance its military capabilities amid regional tensions, particularly regarding China’s assertiveness in the South China Sea.

The Indonesian government has communicated its intent through a letter sent to the Indian embassy in Jakarta. Additionally, India is reportedly offering a loan to facilitate this purchase, potentially through the State Bank of India or other national banks.

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