India and Indonesia are in the final stages of negotiating a $450-million (€440-million) deal for the export of the BrahMos supersonic cruise missile.
If concluded, Indonesia will become the second ASEAN nation, after the Philippines, to acquire this missile system.
During Indonesian President Prabowo Subianto's recent visit to New Delhi, where he was the guest of honor at India's Republic Day, he met with BrahMos CEO Jaiteerth Joshi in the presence of Indian Prime Minister Narendra Modi.
A high-level delegation led by Indonesian navy chief Admiral Muhammad Ali also visited the BrahMos facility.
The missile, developed jointly by India and Russia, has gained traction among several countries in Southeast Asia and the Middle East, which are looking to procure both the shore-based and ship-mounted versions.
Many experts believe the missile procurement is part of Indonesia's broader strategy to enhance its naval power and modernize its military amid growing security concerns related to China's territorial ambitions and assertiveness in the region.
China is pursuing territorial ambitions in the South China Sea through a combination of coercive tactics and military buildup, despite overlapping claims by Brunei, Indonesia, Malaysia, the Philippines and Vietnam.
Srikanth Kondapalli, a professor of China studies at Jawaharlal Nehru University, told DW that India's offer to Indonesia to supply BrahMos cruise missiles is at an advanced stage of negotiations and should not be seen otherwise.
"I do not think that India is concerned about it. China had even transferred nuclear and ballistic missiles to Pakistan and submarines to Myanmar, Bangladesh and others, thus impinging on Indian security," said Kondapalli.
"At that time, China mentioned that it is a deal between two sovereign countries, hence now [China] should not have any anger on Indian sales to Southeast Asia or any other country. India also is aware that it is trying to normalize relations with China," he added.
India's Defense Ministry and Foreign Office declined to comment on the specifics of the missile deal.