India and Indonesia Strengthen Digital Ties with UPI Integration

India and Indonesia have taken a significant step in their digital partnership with the announcement of integrating India's Unified Payments Interface (UPI) into Indonesia's payment system. This initiative, revealed by Prime Minister Narendra Modi during a joint press conference with Indonesian President Prabowo Subianto, aims to simplify business transactions and enhance travel experiences for citizens of both nations. The agreement is part of a broader strategy to strengthen technological and educational ties, with a focus on empowering youth and fostering innovation. The Prime Minister's visit also includes cultural engagements and a ceremonial welcome in Jakarta, marking the beginning of his diplomatic tour.

By Narendra Chaudhary Jul 7, 2026, 13:01 IST

Strengthening Digital Partnerships

India and Indonesia have made significant strides in enhancing their digital collaboration, as Prime Minister Narendra Modi announced the integration of India's Unified Payments Interface (UPI) with Indonesia's payment framework. During a joint press conference with Indonesian President Prabowo Subianto, PM Modi emphasized that this initiative would simplify business transactions and facilitate cross-border travel for citizens of both nations. "We are thrilled to announce that India's UPI will be linked with Indonesia's payment system, enhancing both business operations and travel experiences," stated PM Modi.

This announcement is part of a wider array of agreements aimed at bolstering technological, educational, and innovative partnerships between the two countries. PM Modi highlighted the importance of youth in fostering future collaborations, noting that both India and Indonesia benefit from a demographic advantage and are well-equipped to work together in emerging technologies. "The 21st century is technology-driven, and our youth are naturally inclined towards it," he remarked.

Additionally, the leaders agreed to enhance cooperation in sustainable agriculture and agro-technology, while also finalizing institutional partnerships and digital initiatives aimed at empowering the next generation and accelerating bilateral innovation. PM Modi elaborated on the strategic agreements, stating, "Today, we have signed a crucial agreement to boost technological collaboration among our youth in fields such as AI, telecommunications, and digital public infrastructure. We have also committed to strengthening startup partnerships between our nations. A campus of India's esteemed IIM Bangalore will be established in Indonesia, benefiting youth across the ASEAN region immensely."

Furthermore, the Prime Minister noted that the strategic collaboration extends beyond terrestrial innovation into advanced space exploration, underscoring a resilient partnership built over decades. "We have a long-standing, trusted relationship in the space sector. Today, we made key decisions regarding joint research, technology sharing, and capacity building in this area," PM Modi added.

Ceremonial Welcome in Jakarta

PM Modi in Jakarta

The comprehensive agreements were preceded by a grand ceremonial welcome for Prime Minister Modi in Jakarta earlier on Tuesday. This reception marked the official start of his visit to Indonesia, featuring horse-mounted guards, a ceremonial Guard of Honour, and enthusiastic crowds. Indonesian President Prabowo Subianto warmly welcomed the Prime Minister, and the two leaders shared a heartfelt embrace. Indonesia showcased a spectacular reception for PM Modi, who is currently on the first leg of his three-nation diplomatic tour.

In addition to official discussions and policy frameworks, PM Modi's itinerary includes rich cultural and community engagements. During his visit, he plans to connect with members of the Indian diaspora to strengthen grassroots ties. He will also accompany President Prabowo to the UNESCO World Heritage-listed Prambanan Temple Complex in Yogyakarta.

(With agency inputs)