Indonesia will do UPI deal with India: talk on local currency trade and real-time payment mechanism deal, traders will now be able to make payments through UPI.

After signing real-time payment mechanism and local currency trade deal with France and UAE to promote local currency, India is now preparing to do a similar deal with Indonesia. This information has been received after the meeting between the finance ministers of the two countries on Sunday.

Consider increasing the limit of digital payment

According to the report, the government is also considering increasing the limit of digital payments between the two countries, which will encourage the use of UPI and other similar payment mechanisms.

During the meeting with Finance Minister Nirmala Sitharaman, Indonesian Finance Minister Mulyani Indrawati said, “The two countries will discuss the possibility of cooperation in digital technology, payment mechanisms under central banks and the use of local currency.”

trade in each other’s currency

According to officials, the currency system will probably be similar to that of the United Arab Emirates (UAE). Which means Indian exporters can settle their trade in Indonesian rupees (rupiah), while the other side (Indonesian traders) can trade their palm oil and other trades in Indian rupees (₹).

Indonesia is India’s sixth largest trading partner

Indonesia is one of India’s regular trade partner, the trade between the two countries was around Rs 3.20 lakh crore last year. Indonesia was India’s sixth largest trading partner in 2022. During this period, due to the large shipment of palm oil and petroleum, Indonesia has also earned a trade surplus of Rs 1.55 lakh crore from Indian trade.

Indonesia is also the subcontinent’s largest trading partner in the ASEAN region and one of the largest economies in Asia. It has been told in the report that many other countries including Indonesia are interested in India’s digital public infrastructure. After Bhutan, Singapore, UAE, France, Indonesia can join those countries.