EFD poised to enhance collaboration on bilateral and international economic matters
Indonesia has emerged as India’s largest trading partner in the ASEAN region, with bilateral trade seeing an eightfold increase since 2005, reaching US$38 billion in FY 2022-23, a 48% jump on year-on-year, Finance Minister Nirmala Sitharaman said on 16 July at a G20 meeting.
Nirmala and the Indonesian Finance Mulyani Indrawati have also launched the “India – Indonesia Economic and Financial Dialogue”, to strengthen cooperation between the two nations and foster a shared understanding on global issues.
“The evolution of India’s ‘Look East Policy’ in 1991, followed by the ‘Act East Policy’, has facilitated a rapid development in our bilateral relations, particularly in the commercial and cultural fields,” Sitharaman at the dialogue launch during the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Gujarat.
The EFD Dialogue is poised to enhance collaboration on bilateral and international economic and financial matters by bringing together economic policymakers and financial regulators from both countries.
Areas of cooperation inter-alia, include macroeconomic challenges and global economic prospects, bilateral investment relations, and cooperation in G20 and ASEAN matters.
Recognising the potential of the digital economy, the two Finance Ministers also noted the potential of collaboration in the field of fintech for financial inclusion, said the Finance Ministry.
Given the similarities between India and Indonesia as fast-growing economies, and their active roles in multilateral organisations such as G-20, WTO, and East Asia Summit, this Dialogue promises to offer a unique opportunity for mutual learning and policy coordination.
The Finance Ministers concluded with a shared optimism that the EFD Dialogue will not only deepen the bilateral relationship between India and Indonesia, but also contribute to the broader economic and financial stability of Southeast Asia and the world.
Meanwhile, India has commenced talks with Indonesia to link the two countries’ fast payments systems to allow transactions in local currencies, according to media reports.
The Unified Payments Interface (UPI) with Indonesia will be third country transaction-link up after Singapore and the United Arab Emirates. Fiinews.com
