Following France and the UAE, Indonesia may be the next to strike a UPI deal with India
India and Indonesia have reached an agreement to develop a real-time payment system and promote local currency trading. The move is aimed at strengthening trade and investment ties between the two nations.
India has reached a similar agreement with Indonesia, with both nations working on a real-time payment system and local currency trading, after recently concluding a pact with the United Arab Emirates to promote local currencies.
The usage of UPI and other similar technologies will reportedly become more prominent as a result of the government’s efforts to broaden the scope of digital payments between the nations, according to a TOI Report. According to Sri Mulyani Indrawati, Indonesia’s finance minister, “both countries would discuss the possibility of cooperation in digital technology, payments systems under central banks, and using local currency.”
The topic came up at the meeting between Indonesian Finance Minister Indrawati and Indian Finance Minister Nirmala Sitharaman as the two nations announced the beginning of a “Economic and Financial Dialogue” aimed at strengthening their trade and investment ties.
The currency agreement, which is likely comparable to the one with the UAE, would allow Indian exporters to settle their transaction in Indonesian rupiah while the other side might profit in Indian rupees, according to authorities. The topic came up at the meeting between Indonesian Finance Minister Indrawati and Indian Finance Minister Nirmala Sitharaman as the two nations announced the beginning of a “Economic and Financial Dialogue” aimed at strengthening their trade and investment ties.
One of India’s frequent trading partners is Indonesia; the two nations exchanged almost $39 billion in goods and services in the previous year. Having a $19 billion trade surplus in 2022 as a result of huge exports of palm oil and petroleum, Indonesia ranked as India’s sixth-largest trading partner. The island country, one of the biggest economies in Asia, is also the subcontinent’s biggest trading partner in the ASEAN neighborhood.
An Indian official was quoted in the TOI story as saying that Indonesia and other nations were interested in India’s digital public infrastructure and that Indonesia may “take one of the bricks from the India stack” after Singapore, the UAE, and France.
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