Indonesia sees India as key source of technology, policy solutions

Indonesia is increasingly looking towards India not just as a strategic partner, but also as a trusted source of technology, policy ideas and development solutions, Government officials here said on Sunday.

Prime Minister Narendra Modi’s upcoming visit to Indonesia from July 6-8 comes at a time when the partnership between the two countries is moving beyond traditional cooperation, they said.

Among the areas is the proposed linkage between India’s Unified Payments Interface (UPI) and QRIS, the QR payment code launched by the Bank of Indonesia, which will allow Indian tourists visiting Bali and other Indonesian destinations to make all kinds of payments in that country easily through their phones.

From food security and digital governance to healthcare, agriculture and defence, India’s successful public policy models are becoming valuable reference points for Indonesia’s own development journey.

Several delegations from Indonesia have visited India to learn from India’s digital infrastructure and social welfare schemes like our Public Distribution System, rice fortification scheme, fertiliser subsidy reforms, AGRISTACK, etc, the officials said

Indian digital solutions that powered the success of Aadhaar, UPI, DigiLocker, e-KYC and ONDC are also finding relevance in Indonesia’s own digital transformation, they said.

This marks a shift from technology adoption to deeper institutional collaboration, with Indian companies contributing their experience in building secure, population-scale digital public infrastructure.

“Today, Indonesia is increasingly looking towards India not just as a strategic partner, but also as a trusted source of technology, policy ideas and development solutions,” an official said.

Indonesia is leveraging India’s expertise in digital payments, and the proposed UPI-QRIS linkage will allow seamless cross-border payments for travellers and businesses in both countries, the officials said.

The initiative is expected to boost tourism, trade and digital commerce while making transactions faster, cheaper and more convenient. A live UPI-QRIS corridor would be transformative for Indian businesses with trade or investment exposure in Indonesia and for the estimated 1.7 million Indian tourists who visit Bali and other Indonesian destinations each year.

India’s digital public infrastructure has also emerged as a major area of collaboration.

Indonesia’s Open Network (ION) is inspired by India’s ONDC model and aims to create a more open and inclusive digital marketplace for over 65 million micro, small and medium enterprises in Indonesia.

Built on the Beckn 2.0 open protocol, ION is expected to mark its first live transaction during Prime Minister Narendra Modi and President of Indonesia Prabowo Subianto’s summit meeting on July 7.

India’s digital partnership with Indonesia is now moving beyond sharing successful models to helping build the country’s next-generation digital backbone.

Indonesia’s ambitious Digital Nusantara initiative aims to create a unified and interoperable national digital infrastructure, and Indian technology expertise is emerging as an important partner in this journey.

Indonesia also has a larger vision of becoming a producer and exporter of digital solutions across ASEAN rather than remaining only a technology consumer.

India’s decade-long experience in creating open, inclusive and sovereign digital platforms offers valuable lessons as Indonesia works towards achieving this goal.

Cooperation is also expanding into financial markets. Both sides are exploring the use of Indian expertise in AI-powered market surveillance, digital investment platforms and technology-driven capital market reforms.

India’s own experience in modernising its stock markets through technology is opening new avenues for collaboration with Indonesia, the officials said.

Indonesia’s Free Nutritious Meals programme has drawn inspiration from India’s Mid-Day Meal (PM POSHAN) scheme. Similarly, its Red and White Village Cooperatives initiative is exploring cooperation with India for affordable medicines through the Jan Aushadhi model, helping strengthen healthcare access in rural areas, they said.

Indonesia is also working with India on defence manufacturing, technology transfer, military training and maritime cooperation. India’s experience in indigenous defence production under ‘Atmanirbhar Bharat’ is creating new opportunities for long-term collaboration.

Together, these initiatives reflect a broader trend, the officials said, adding India’s development journey is no longer only benefiting its own citizens but is increasingly serving as a blueprint for friendly countries.

As Prime Minister Modi visits Indonesia, this growing knowledge partnership is emerging as one of the strongest pillars of bilateral ties, creating opportunities for innovation, economic growth and long-term strategic cooperation, they said.