India's UPI to integrate with Indonesia's payment system in cross-border push
Synopsis
India and Indonesia have agreed to link their national payment systems — UPI and Indonesia's equivalent — letting tourists and businesses pay across borders with domestic apps. Alongside the payments deal, Modi's Jakarta summit produced agreements on critical minerals, space cooperation, an IIMB campus in Malang, and a joint conservation project for the thousand-year-old Prambanan Temple.
Key Takeaways
PM Modi announced the integration of India's UPI with Indonesia's payment system on 7 July in Jakarta .
Close to a dozen agreements were signed, covering maritime security , critical minerals , steel , and space cooperation with ISRO .
IIM Bangalore (IIMB) will establish a campus at Singhasari SEZ, Malang — a first for Indian management education in Southeast Asia.
Modi will launch the conservation project for the Prambanan Temple in Yogyakarta alongside President Prabowo Subianto .
India and Indonesia will mark the centenary of Rabindranath Tagore's visit to Indonesia as the 'Tagore-Dewantara Year of Cultural and Educational Diplomacy.'
Prime Minister Narendra Modi on Tuesday, 7 July announced that India's Unified Payments Interface (UPI) will be integrated with Indonesia's payment system, enabling tourists and businesses to conduct cross-border retail transactions using their domestic payment apps. The announcement came during a joint press conference with Indonesian President Prabowo Subianto in Jakarta, marking a significant expansion of UPI's international footprint.
What the UPI Integration Means
The linkage will allow users on both sides to pay across borders without switching apps or currencies — a model India has already piloted with Singapore, the UAE, and several other nations. Speaking at the joint press conference, Modi said, 'We are delighted that India's UPI is set to be integrated with Indonesia's payment system. This will boost both the ease of doing business and the ease of travel.'
Indonesia is among Southeast Asia's largest economies and a major destination for Indian tourists and businesses, making the payment corridor commercially significant for both nations.
Broader Agreements Signed in Jakarta
The UPI deal was one of close to a dozen agreements finalised during the bilateral summit. India and Indonesia also concluded a framework on maritime safety and security cooperation, along with accords covering critical minerals, steel supply chains, and partnerships in stainless steel and rare-earth magnets.
Modi noted that supply chain resilience in technology has become a strategic priority. 'A significant agreement has also been reached to further strengthen supply chains in the critical minerals and steel sectors. New partnerships are being forged between our companies regarding stainless steel and rare-earth magnets,' he said.
The Indian Space Research Organisation (ISRO) will also assist Indonesia in space exploration for peaceful purposes and support capacity building in its space sector, the Prime Minister confirmed.
IIM Bangalore Campus in Indonesia
In a landmark move for Indian higher education, Modi announced that Indian Institute of Management Bangalore (IIMB) will establish a campus in Indonesia. The proposed campus will be set up at the Singhasari Special Economic Zone (SEZ) in Malang, Indonesia. Modi said the institution would benefit the youth of the broader ASEAN region and represents a significant step in the internationalisation of India's higher education ecosystem.
Cultural Diplomacy: Prambanan and Tagore-Dewantara Year
Modi announced he would join President Subianto to launch a conservation project for the Prambanan Temple in Yogyakarta on Wednesday. 'More than a thousand years old, the Prambanan Temple stands as a symbol of the shared cultural heritage of India and Indonesia,' Modi said.
The two nations will also jointly celebrate the centenary of Rabindranath Tagore's historic visit to Indonesia, designating it the 'Tagore-Dewantara Year of Cultural and Educational Diplomacy.' The move reflects a deliberate effort to anchor the strategic partnership in civilisational ties that predate modern diplomacy.
What Comes Next
The full operationalisation of the UPI-Indonesia payment link will depend on technical integration timelines between the two nations' payment infrastructure bodies. The IIMB campus and ISRO cooperation are also at framework stage, with detailed implementation roadmaps expected in subsequent months. Modi described the summit as the opening of 'a golden chapter of the India-Indonesia partnership' with positive implications for the wider 21st-century world order.
Point of View
It sets a template for Indian educational institutions across the region. The critical minerals and rare-earth magnets deals deserve closer scrutiny — India is competing with China for supply-chain positioning in Southeast Asia, and Indonesia sits on some of the world's largest nickel reserves. Whether these framework agreements translate into binding supply commitments will determine their strategic value.
NationPress
7 Jul 2026
Frequently Asked Questions
What is the India-Indonesia UPI payment integration?
It is an agreement to link India's Unified Payments Interface (UPI) with Indonesia's domestic payment system, allowing tourists and businesses from both countries to make cross-border retail payments using their existing domestic apps. The announcement was made by PM Modi in Jakarta on 7 July.
Where will the IIM Bangalore campus in Indonesia be located?
The IIM Bangalore campus will be established at the Singhasari Special Economic Zone (SEZ) in Malang, Indonesia. PM Modi described it as a landmark step in internationalising India's higher education ecosystem, with benefits expected for the wider ASEAN region.
What is the Prambanan Temple conservation project?
The Prambanan Temple in Yogyakarta, Indonesia, is a Hindu temple complex over a thousand years old and a symbol of shared Indian and Indonesian cultural heritage. PM Modi announced he would launch its conservation project alongside President Prabowo Subianto on 8 July.
What other agreements did India and Indonesia sign during the summit?
Beyond the UPI deal, both nations signed close to a dozen agreements covering maritime safety and security cooperation, critical minerals and steel supply chains, rare-earth magnets partnerships, and ISRO-led space capacity building for Indonesia.
What is the Tagore-Dewantara Year?
India and Indonesia have designated a joint cultural year called the 'Tagore-Dewantara Year of Cultural and Educational Diplomacy' to celebrate the centenary of Rabindranath Tagore's historic visit to Indonesia. It honours the civilisational ties between the two nations through culture and education.
