UPI In Indonesia: After the recent deal with the United Arab Emirates (UAE) regarding trade in local currency, now such an agreement can be reached between India and Indonesia. Both countries are in talks with each other towards real time payment system and trade in local currency and good news may come soon.
According to the Times of India report, there is also a discussion between the governments of both countries to increase the scope of digital payments, so that UPI and other similar resources can be used.
India’s plan in Indonesia
In the India-Indonesia economic and financial dialogue that began in Gandhinagar, Gujarat on Sunday (May 15), there was an emphasis on increasing bilateral trade and investment, financial services and infrastructure development etc. According to PTI, announcing the start of the talks, Finance Minister Nirmala Sitharaman said, "India has developed expertise in digital public infrastructure so it can provide solutions for convenient and cost-effective digital payments. This can help Indonesia achieve its financial inclusion goals.”
Indonesian Finance Minister Milyani Indrawati, who arrived in India for the meeting, said the two countries will discuss the possibility of cooperation in digital technology, payment systems under central banks and use of local currency.
Both countries will be able to trade in their own currency
Times of India quoted officials as saying that the currency arrangement with Indonesia can be similar to that of the UAE. That is, Indian exporters can do business in Indonesian rupees, while Indonesia can receive its payments in Indian rupees.
Indonesia is India’s biggest business partner
Indonesia is one of the regular trading partners of India. According to the Economic Times report, the trade between the two countries was about $39 billion last year. Indonesia was India’s sixth largest trading partner in 2022. The island nation is also the subcontinent’s largest trading partner in the ASEAN region and one of the largest economies in Asia.