On July 7, Indonesia and India signed deals for New Delhi to supply Jakarta with supersonic cruise and air-to-air missiles, marking a significant step in strengthening security ties between the South Asian and Southeast Asian nations. The agreements were formalized during a meeting at the Merdeka Palace in Jakarta, where Indonesian President Prabowo Subianto welcomed Indian Prime Minister Narendra Modi.
Beyond defense cooperation, India’s widely used digital payments system, the Unified Payments Interface (UPI), launched about a decade ago, is gaining attention in Indonesia. Officials in Southeast Asia’s largest economy are studying whether India’s low-cost digital infrastructure can be adapted to meet their own needs. According to a report by The Times of India, Indonesia is considering India’s broader digital public infrastructure as a potential blueprint for building its own sovereign system.
New Delhi has already signed agreements with several countries, including Singapore, to facilitate cross-border payments, but analysts suggest Jakarta’s interest extends beyond payments to a wider digital transformation. Several Indonesian delegations have recently visited India to study public policy initiatives aimed at strengthening food security and healthcare services.
Indian Prime Minister Narendra Modi is currently in Indonesia until Wednesday before traveling to Australia and New Zealand.
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