Upi: Now, India plans currency, UPI deal with Indonesia

GANDHINAGAR: After the United Arab Emirates, India is looking to seal a deal for bilateral trade in domestic currency, real-time card recognition and digital payments, a move that will promote the use of UPI and similar tools.
The issue came up for discussion during FM Nirmala Sitharaman’s meeting with her Indonesian counterpart Sri Mulyani Indrawati as the two countries announced the launch of ‘Economic and Financial Dialogue’, focused on intensifying trade and investment relationship. Both countries would discuss the possibility of cooperation in digital technology, payment systems under central banks and using more local currency, the Indonesian FM said.
An Indian official later said that currency arrangement will be similar to the one with the UAE, and could see Indian exporters settle their trade in Indonesian rupiah, while those exporting, say, palm oil can earn in Indian rupees. Indonesia is India’s largest trading partner in the Asean region and is among the largest economies in Asia.
With bilateral trade of around $39 billion last year, it was India’s sixth largest trading partner and enjoyed a trade surplus of $19 billion, thanks to large shipments of palm oil and petroleum. Refined petroleum products were India’s largest export item.
The Indian official said there was significant interest in India’s digital public infrastructure from countries and after Singapore, the UAE and France, Indonesia could be among those that “take one of the bricks from the India stack”.
Following her meeting with the Indonesian FM, Sitharaman said: “The areas of cooperation include bilateral investment, financial services and infrastructure development, among others. For instance, India has developed expertise in digital public infrastructure. It can provide time-tested solutions for convenient and affordable digital payments, which can assist Indonesia in achieving its financial inclusion goals.”