New Delhi: Indonesia Looks to India for Digital Innovations
Indonesia is on the path to embracing India’s Unified Payments Interface (UPI) as it aims to enhance its own digital infrastructure. Unlike countries like France and Singapore that primarily use UPI for transactions by Indian travelers, Indonesia has set its sights on a broader goal.
The Indonesian government plans to utilize India’s digital framework to create its own digital ecosystem. This includes not just UPI integration, but also developing systems for digital identity, commerce, and public services that could be shared throughout the ASEAN region.
This growing partnership is expected to be highlighted during Prime Minister Narendra Modi’s visit to Indonesia, which starts this Monday. Digital cooperation will be a key focus in discussions between the two nations.
“India’s successful policies in areas like food security, healthcare, and agriculture are becoming important references for Indonesia as it works on its own development,” an official stated.
Several Indonesian delegations have traveled to India to learn about its public policy initiatives, such as the Public Distribution System (PDS) and the PM POSHAN scheme. These visits aim to strengthen Indonesia’s systems in food security, agriculture, and healthcare.
For instance, Indonesia’s ambitious Free Nutritious Meals program is inspired by India’s Mid-Day Meal scheme. Additionally, it is looking into collaborations for affordable medicines through India’s Jan Aushadhi program to improve rural healthcare.
In the realm of defense, Indonesia is looking to collaborate with India on manufacturing, technology transfer, and military training, building upon India’s experiences in domestic defense production.
A significant part of the digital partnership is the planned UPI-QRIS linkage, which will facilitate easy cross-border payments, helping businesses, tourists, and shops in both countries. This is particularly beneficial for the 1.7 million Indian tourists who visit Indonesia each year, especially in popular destinations like Bali.
Moreover, Indonesia is developing the Indonesia Open Network (ION), modeled after India’s Open Network for Digital Commerce (ONDC). This initiative aims to make digital commerce more accessible in the country.
