Prime Minister Narendra Modi landed in Indonesia to kick off the first stage of his three-country tour, designed to enhance India's Act East Policy, MAHASAGAR Vision, and its dedication to a free, open, and inclusive Indo-Pacific.
President of Indonesia Prabowo Subianto welcomed Modi at the airport.
Before departing from Delhi, Modi remarked that his trip to Indonesia, Australia, and New Zealand would enhance India’s Act East Policy, MAHASAGAR Vision, and “our perspective on a free and open Indo-Pacific.” MAHASAGAR, or Mutual and Holistic Advancement for Security
Across the Regions, represents India’s vision for security and development in every region.
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Regarding relations with Indonesia, Modi states, “India and Indonesia upgraded their bilateral relations to a Comprehensive Strategic Partnership during my initial visit to Indonesia in 2018.”
He mentioned that this would be his inaugural bilateral visit following the upgrade of relations, occurring after President Prabowo’s state trip to India as the chief guest during the Republic Day festivities in January 2025.
“India and Indonesia share strong civilisational and people-to-people ties, and my visit will further deepen all aspects of our multifaceted partnership,” Modi says.
While in Indonesia, he will engage with the Indian diaspora and tour the Prambanan Temple complex in Yogyakarta alongside President Prabowo, whom he referred to as another significant symbol of the strong cultural connections between the nations. The ancient temple, located approximately 17 kilometers northeast of Yogyakarta city, is regarded as the largest Hindu temple in Indonesia.
Modi will journey to Melbourne from Indonesia upon the invitation of Australian Prime Minister Anthony Albanese. The tour's last stop will bring him to Auckland, at the request of New Zealand Prime Minister Christopher Luxon, as part of a trip that India claims is aimed at enhancing regional collaborations and its perspective on the Indo-Pacific.
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Akash Damniwala, President Director of Bank SBI Indonesia, emphasized the potential advancements in a framework for local currency settlements.
'PM Modi is arriving.' On the banking side, we have one major expectation in place. In 2024, Indonesia and RBI signed one agreement concerning local settlement; the existing settlement was signed, according to Damniwala.
He remarked that the framework would enable a non-dollar-based approach for transactions involving the Indonesian rupiah and the Indian rupee.
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'If the formulation will happen, we hope that when PM Modi visits, the signing will happen and a procedure will come in place that will actually help the trade between both the countries in the local currency,' Damniwala added. 'The requirement of dollars will come down, which is one of the important things for both countries.'