Next week, Indian Prime Minister Narendra Modi is set to embark on a visit to Indonesia, where he will engage in discussions with President Prabowo Subianto. A major topic on the agenda for their bilateral talks is expected to be the collaboration on critical minerals. Indian Ambassador Sandeep Chakravorty noted that both nations are working towards several memorandums of understanding that span sectors including critical minerals, healthcare, pharmaceuticals, education, and space. While some agreements might reach finalization during this visit, others are still in the negotiation phase.
India is eager to enhance its partnership with Indonesia in the realm of critical mineral processing and manufacturing. The proposed collaboration intends to establish production facilities within Indonesia, ensuring a stable supply for the Indian market and for global exports. Additionally, there are ongoing discussions about potential joint ventures with Indonesian partners, which could deepen economic ties between the two countries.
As the largest producer of nickel globally, Indonesia has become a pivotal partner for nations aiming to secure reliable supplies of critical minerals crucial for electric vehicles, batteries, and other advanced technologies. To this end, Indonesia mandates that nickel must be processed domestically before it is exported, a policy designed to stimulate investment in downstream industries.
This visit underscores India’s broader strategy to bolster its supply chains for critical minerals, aiming to reduce reliance on external sources. By strengthening economic cooperation with Indonesia, India hopes to secure its position in the global market for advanced technology components.