India Indonesia Digital Diplomacy UPI QRIS Integration: Prime Minister Narendra Modi’s visit to Jakarta in July will not just be a formal diplomatic visit, but will also be a showcase of India’s ‘digital diplomacy’ in the Indo-Pacific region. Will create a new history. Indonesia, the country with the world’s fourth largest population and Southeast Asia’s largest economy, is now building its future digital foundation by building India’s ‘Digital Public Infrastructure’ (DPI) model.
Strategic importance of Indonesia
Indonesia, with a population of 28 crore and annual GDP growth of about 5 per cent, is of utmost importance to India. By 2030, its digital economy is projected to reach $194.5 billion in e-commerce alone. Strategically, Indonesia has identified India as its ‘digital partner’ amidst the geopolitical balance between China’s manufacturing and America’s manufacturing. Chosen as. This is considered to be the biggest strategic victory for India in the last decade.
Indonesia’s own ONDC
The biggest proof of this partnership is the ‘Indonesia Open Network’ (ION). It is India’s ‘Open Network for Digital Commerce’ (ONDC) and is based on the Beckn 2.0 protocol. The first live transaction of ION is expected to take place during the Modi-Prabovo summit on July 7.
This network will connect buyers, sellers, logistics providers and payment systems into a shared ecosystem. Currently, platform commission in Indonesia ranges from 25 to 40 percent, which is targeted to be reduced to below 8 percent through ION.
Let us tell you that currently there are 65 million micro and small scale industries in Indonesia, which have to pay huge commission of 25 to 40 percent on digital platforms. Through ION, the target is to reduce this expense to less than 8 percent, which will democratize small traders.
UPI expansion plan
The integration of India’s UPI and Indonesia’s QRIS payment systems is the second main pillar of this digital corridor. By the end of 2025, QRIS had 59 million users and 42 million merchants, more than double its original target. A live UPI-QRIS corridor between India and Indonesia will not only facilitate trade but also prove to be a game-changer for the 17 lakh Indian tourists who visit Bali and other tourist destinations annually.
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Step towards sovereign digital future
India’s ‘Protein e-Gov Technologies’ Companies like Indonesia’s ‘Digital Nusantara’ Helping in the campaign. This includes critical infrastructure like digital identity, e-KYC and tax modernisation. Additionally, discussions are also underway to equip Indonesia’s capital markets with AI-powered monitoring systems in collaboration with the Bombay Stock Exchange (BSE).
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