Yudho Sasongko has mentioned economic integration, supply chains, and maritime connectivity as pillars of bilateral relations when Prime Minister Modi visits Jakarta.
Indonesia and India are increasing financial ties through a local currency payment system to reduce their dependence on the US dollar, a senior diplomat has told RT India.
Bank Indonesia and the Reserve Bank of India have agreed on a local currency settlement system (LCS) for this, the deputy head of the Indonesian Embassy, ​​Yudho Sasongko, said in an interview given before the visit of Indian Prime Minister Narendra Modi in Jakarta.
Modi received a warm welcome on Monday, with Indonesian President Prabowo Subianto welcoming him at the airport. Fighter jets accompanied the prime minister’s plane since it entered Indonesian airspace.
“Central Banks are still working on its implementation,” Sasongko said, referring to the procedure. “Once implemented, it is expected to reduce transaction costs, reduce dependence on the US dollar, and facilitate bilateral trade and investment.”
Quick response (QR) code integrations to make retail payments easier for tourists are also being explored, he said.
📹 🇮🇳🇮🇩 Welcome to PM Modi in Jakarta
Prime Minister Narendra Modi was welcomed by Indonesian President Prabowo Subianto on his arrival in Jakarta.
In a special gesture, fighter jets of the Indonesian Air Force escorted the Prime Minister’s plane after entering the country’s airspace. https://t.co/DM61UONmjLpic.twitter.com/JHgroicp1D
— RT_India (@RT_India_news) July 6, 2026
Indonesia and India have a strong commitment to promote the voice of the Global South, Sasongko added, stressing that reforms in the United Nations, including the Security Council, are important for the international justice system. Sasongko also pledged strong support for India’s BRICS chairmanship.
As two of the largest economies in the Indo-Pacific, Indonesia sees India as a country “The broadest and most important” partner “Who respects sovereignty, international law and an inclusive regional order,” He said.
Jakarta aims to see a deeper ASEAN-India Strategic Partnership and “Effective planning and greater cooperation between the ASEAN Perspective and India’s Indo-Pacific Ocean Initiative.”
He said increasing sea and air communication between nations will increase “directly translating into investment, jobs, tourism, and regional collective prosperity.”
Essential minerals and rare earths are, the diplomat explained, “Priority sectors” and the deep collaboration capabilities necessary to support resilient and diversified supply chains for clean energy and advanced manufacturing.
Sasongko said cooperation in the steel and base metal industries could increase Indonesia’s resource base and India’s manufacturing capacity to create mutually beneficial partnerships. He also mentioned medicine and medical devices, renewable energy and the electric vehicle battery ecosystem, digital technology, and food processing as potential areas of cooperation.
Bilateral trade between the two countries was pegged at $28.16 billion in FY25. India mainly imports mineral oil, especially coal, palm oil, iron and steel from Indonesia. Jakarta’s total foreign direct investment in India during the period April 2000-March 2025 was $659.30 million.
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