India and Indonesia Partner on Sabang Port Development

India and Indonesia Partner on Sabang Port Development

8th July 2026

4 Min Read

India and Indonesia Partner on Sabang Port Development

India and Indonesia have announced a strategic partnership for the integrated development of Sabang Port, with Indonesian President Prabowo Subianto welcoming India's interest following bilateral talks with Prime Minister Narendra Modi. The partnership covers a broad range of maritime infrastructure, positioning Sabang Port as a potential hub for trade, tourism and energy services in the Andaman Sea.

What the Port Project Covers

According to a joint statement released by India's Ministry of External Affairs, the Sabang Port development is expected to span cruise and marine-tourism facilities, maritime industries including shipbuilding and ship-repair, and shore-based services supporting offshore energy activities in the Andaman Sea. Both governments have been encouraged to work out the scope, modalities and financing of the project in a time-bound and mutually beneficial manner, though no confirmed figures or timelines have been announced.

  • Cruise and marine-tourism facilities
  • Shipbuilding and ship-repair industries
  • Shore-based services for offshore energy in the Andaman Sea
  • Scope and financing to be finalised by authorities from both nations

Also Read: JSW Infrastructure Raises ₹7,503 Crore to Expand Ports

Connectivity at the Core

Both leaders noted that the partnership is intended to foster institutional, physical and digital connectivity, facilitating the movement of people and commodities between India's Andaman and Nicobar Islands and Sumatra Island while driving employment and shared regional prosperity. Beyond the port itself, the two nations affirmed their intention to strengthen air and maritime links in the region, with the 3rd Joint Task Force Meeting on Andaman-Aceh Connectivity scheduled for the second half of 2026 to implement an action plan.

A Wider Bilateral Push

The Sabang Port announcement formed part of a broader bilateral agenda. The two nations also welcomed the launch of the Indonesia Open Network, which uses India's Open Network for Digital Commerce architecture to support Indonesian small businesses, and confirmed ongoing progress on a cross-border QR payment linkage between the Reserve Bank of India and Bank Indonesia. A new memorandum of understanding on telecommunications technologies was also concluded during the talks.

On the scientific and space front, both sides reflected on the inaugural Joint Commission Meeting on Science and Technology and the signing of a memorandum on Research, Technology and Innovation Cooperation. Space collaboration was also highlighted, with Prime Minister Modi expressing appreciation for Indonesia's support of India's satellite programmes and the Gaganyaan Mission. For India, the Sabang Port partnership adds a significant maritime infrastructure dimension to a relationship that is expanding across multiple strategic sectors simultaneously.

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