Media365
India and Indonesia have taken a significant step towards strengthening their economic partnership, with the two countries agreeing to work on linking their digital payment ecosystems through cross-border QR payments, a move expected to make transactions easier for businesses, tourists and investors.
Addressing a joint press interaction after bilateral talks with Indonesian President Prabowo Subianto, Prime Minister Narendra Modi said India’s Unified Payments Interface (UPI) is being integrated with Indonesia’s payment system, marking another milestone in India’s push to internationalise its digital public infrastructure.
The integration of UPI with Indonesia’s payment ecosystem is expected to simplify cross-border retail transactions, lower payment costs and boost trade, tourism and investment flows between the two fast-growing Asian economies.
President Prabowo Subianto also confirmed that both countries will work on establishing cross-border QR payment linkages, reflecting their shared focus on expanding digital financial connectivity and supporting businesses operating across borders.
Beyond fintech, the leaders agreed to deepen economic engagement across multiple sectors. PM Modi announced that the Indian Institute of Management (IIM) Bangalore will establish a campus in Indonesia, aimed at strengthening management education, innovation and skill development in the region.
India also offered to support Indonesia in capacity building in the space sector, expanding cooperation in science, technology and advanced research.
Maritime cooperation featured prominently in the discussions as well. PM Modi said the Indian and Indonesian Coast Guards will work more closely in the Indian Ocean, reinforcing maritime security, safe navigation and regional stability along one of the world’s busiest trade routes.
The announcements underscore New Delhi’s broader strategy of expanding economic and strategic partnerships across Southeast Asia through digital infrastructure, education, technology and maritime collaboration. The UPI linkage, in particular, adds Indonesia to the growing list of countries adopting or integrating with India’s globally recognised digital payments ecosystem, strengthening India’s position as a leading exporter of digital public infrastructure.
