
In all probability, India is heading for another major defense export deal, Report informs via The New Indian Express.
According to sources privy to the matter, Indonesia’s defense ministry has sent a letter regarding a $450 million BrahMos deal to the Indian embassy in Jakarta.
Highly placed sources confirmed that India is also offering a loan to Indonesia from either the State Bank of India or any other Indian national banks. The specifics regarding this are being worked out.
As per the sources, the EXIM (Export-Import) Bank was initially scheduled to process the loan to Indonesia. However, this did not materialize.
It is pertinent to note that Indonesia had joined the BRICS, an intergovernmental organization 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.
Indications about the BrahMos deal have been given by several senior officials of Indonesia, including the country’s ambassador to India. However, Indonesian President Prabowo Subianto’s reported visit to Pakistan along with his India visit on Republic Day this year, adds a new dynamic and complexity to this developing strategic calculus.
Reports indicate that New Delhi is trying to dissuade Subiato from clubbing his Republic Day visit with a bilateral visit to Islamabad. Some insiders view that the Indonesian President’s clubbed visits could impact the BrahMos deal.