Indonesia and India reached US$23.16 billion in bilateral trade during 2025 as officials explored deeper strategic cooperation in semiconductors, data centers, and digital industrial transformation. The discussions aim to strengthen industrial competitiveness and expand investment opportunities between the two nations.
Bilateral Talks at the BRICS Industry Ministers’ Meeting
The strategic discussions took place between Indonesian Deputy Industry Minister Faisol Riza and Indian Minister of State for Commerce and Industry Jitin Prasada. The meeting occurred on the sidelines of the 10th BRICS Industry Ministers’ Meeting in Jaipur, India, on Wednesday, August 26, 2026. According to Riza, the talks look to build on closer relations between the two countries.
“We hope this meeting will further strengthen ties between our two countries while unlocking more opportunities for concrete, actionable, and mutually beneficial industrial collaboration,” Riza said.
The diplomatic engagement follows recent high-level visits between the two nations. Indonesian President Prabowo Subianto visited India for Republic Day in 2025, and Indian Prime Minister Narendra Modi traveled to Indonesia for a state visit in July 2026. Through these exchanges, both governments have identified trade, investment, healthcare, pharmaceuticals, industrial downstreaming, and human resources as key areas for broader cooperation.
Semiconductors and Digital Industrial Transformation
During the Jaipur meetings, Indonesia invited India to expand cooperation in semiconductor development. Both governments view microchips as critical components for electronics, automotive, telecommunications, energy, and digital industries. Furthermore, the two officials discussed digital industrial transformation, mapping out potential joint efforts in automation, artificial intelligence, smart manufacturing, and data center development.
This technological alignment is expected to support productivity and bolster industrial competitiveness across both markets. Indian officials also welcomed parallel Indonesian proposals focused on green industry development and agro-industry collaboration.
Did You Know? Bilateral trade between Indonesia and India hit US$23.16 billion (approximately Rp410.7 trillion) in 2025, with Indonesian exports accounting for US$18.32 billion (approximately Rp325 trillion) and imports totaling US$4.84 billion (approximately Rp85.8 trillion).
Trade Dynamics and Market Access Concerns
Despite the strong overall trade volume, Indonesian non-oil and gas manufacturing exports to India have experienced a decline in recent years. Expanding market access for Indonesian manufactured products served as a core agenda item during the ministerial talks. At the same time, Indian officials raised concerns regarding Indonesian import quota restrictions on several Indian product lines. In response, Indonesian representatives agreed to forward these matters to relevant ministries for administrative review.
Looking ahead, Indonesia’s full membership in BRICS could generate additional pathways for industrial cooperation with India and other member states.
Frequently Asked Questions
Where did the ministerial discussions take place?
The talks took place on the sidelines of the 10th BRICS Industry Ministers’ Meeting in Jaipur, India, on August 26, 2026.
Who represented Indonesia and India during the trade talks?
Indonesian Deputy Industry Minister Faisol Riza met with Indian Minister of State for Commerce and Industry Jitin Prasada.
What were the primary sectors targeted for strategic cooperation?
Both countries focused on semiconductor development, artificial intelligence, smart manufacturing, data center growth, green industry development, agro-industry, healthcare, pharmaceuticals, industrial downstreaming, and human resources.
What steps do you think Indonesia and India should prioritize next to balance their manufacturing trade and accelerate digital transformation?
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