After closing the currency deal with Singapore, France, and the UAE, India is all set to strike up a deal with Indonesia to promote the local currency. Both countries are working on a real-time payment mechanism, and India is looking for new opportunities to expand the scope of digital payments.
Indonesian finance minister Sri Mulyani Indrawati said, “Both countries would discuss the possibility of cooperation in digital technology, payments systems under central banks and using local currency.”
Officials said that the deal is similar to the one made with the UAE; therefore, it will be beneficial for both parties as Indian exporters will pay in Indonesian Rupiah and would subsequently earn in Indian rupee.
The subject of discussion appeared when Finance Minister Nirmala Sitharaman met with her Indonesian counterpart, Indrawati, during the launch of ‘Economic and Financial Dialogue’. This dialogue was focused on expanding and deepening trade and investment ties between the two countries.
India and Indonesia have deep trade ties, with Indonesia ranking India’s sixth largest partner in 2022 and enjoying a $19 billion surplus for the large shipments of palm oil and petroleum. Therefore, this deal is an important turning point and marks a new beginning.