India and Indonesia Strengthen Economic Ties with New Agreements

India and Indonesia are boosting economic cooperation, focusing on trade, renewable energy, and digital development. Key developments include meetings to address trade barriers, an MoU on Local Currency Settlement, cooperation on critical minerals, and collaboration in digital infrastructure. The efforts aim to deepen ties and foster bilateral growth.

In a series of strategic moves to boost bilateral economic cooperation, India and Indonesia are doubling down on initiatives aimed at resolving trade barriers and enhancing mutual investments. Prime Minister Narendra Modi and Indonesian President Prabowo Subianto have agreed to expedite the conclusion of the ASEAN-India Trade in Goods Agreement review by 2025.

Among the agreements was a significant memorandum on Local Currency Settlement Systems signed between the Reserve Bank of India and Bank Indonesia, slated for March 2024. Both leaders emphasized the importance of this deal in promoting bilateral transactions and financial integration, viewing it as a cornerstone of future trade relations.

Further collaboration is anticipated in renewable energy and digital technology sectors, with both countries keen on joint ventures in critical minerals and the development of digital infrastructure. The discussions included plans to enhance air connectivity and streamline cross-border digital transactions, promising a new era of enriched India-Indonesia relations.

(With inputs from agencies.)