Indonesia and India Launch ION, Expanding Open Digital Commerce Beyond National Borders

Indonesian President Prabowo Subianto and Indian Prime Minister Narendra Modi deliver a joint statement following their bilateral meeting at Merdeka Palace in Jakarta on Tuesday, July 7, 2026. Photo: BPMI Setpres/Laily Rachev

JAKARTA, Investortrust.id — Indonesia and India have entered a new phase in their strategic partnership with the launch of the Indonesia Open Network (ION), an open digital commerce infrastructure modeled on India's Open Network for Digital Commerce (ONDC) architecture.

The initiative was formally announced during Indian Prime Minister Narendra Modi's state visit to Jakarta on Tuesday, July 7, following bilateral talks with Indonesian President Prabowo Subianto at Merdeka Palace.

The launch reflects a broader shift in global digital policy, where governments are increasingly promoting digital public infrastructure (DPI) as an alternative to platform-centric digital ecosystems dominated by a handful of private technology companies. Rather than building another online marketplace, Indonesia is adopting an open network designed to allow businesses of all sizes to connect through common standards, potentially lowering barriers to digital commerce and expanding competition.

For India, meanwhile, the rollout represents another milestone in exporting one of its signature technology frameworks abroad, reinforcing its growing influence in shaping digital infrastructure across emerging markets.

From Bilateral Agreement to Implementation

The launch of ION appeared as the sixth item under the "Announcements" section in the official outcomes document released by the Indian government on July 7, titled: "Launch of Indonesia Open Network (ION), based on Open Network for Digital Commerce (ONDC) Architecture in India."

The announcement accompanied 14 bilateral memorandums of understanding (MoUs) signed during Modi's visit.

Among the agreements, the Memorandum of Understanding on Cooperation in the Field of Telecommunications Technologies and Services provides an important policy framework supporting Indonesia's broader digital transformation, including the implementation of ION.

Unlike the MoUs, however, ION was listed as a launch rather than a new agreement, indicating that the project has already moved into the implementation phase.

An Open Alternative to Traditional Marketplaces

Indian officials described the launch as an important milestone demonstrating how the country's digital public infrastructure has evolved into a global model for building open, inclusive, and trusted digital economies.

According to an official statement from the Indian government, Indonesia's adoption of ONDC architecture highlights Prime Minister Modi's efforts to position India's digital public infrastructure as a blueprint for other countries pursuing digital transformation.

Indian officials emphasized that ONDC represents more than a technology platform.

Instead, they characterized it as a new approach to democratizing digital commerce by creating equal opportunities for buyers and sellers through interoperable digital standards rather than closed commercial ecosystems.

How ION Works

Unlike conventional e-commerce marketplaces, which require merchants and consumers to operate within a single proprietary platform, ION functions as an open digital network connecting multiple buyer applications, seller applications, logistics providers, payment institutions, and other service providers through shared technical standards.

Businesses therefore are not required to join one dominant platform to reach customers across the broader digital marketplace.

India first developed ONDC to reduce the concentration of market power among large technology platforms while fostering a more competitive, efficient, and inclusive e-commerce ecosystem.

Today, ONDC connects millions of buyers, merchants, and service providers across India.

Building Indonesia's Next Digital Infrastructure

For Indonesia, ION is expected to become foundational infrastructure for the country's rapidly expanding digital economy.

The network is designed to widen digital access for micro, small, and medium-sized enterprises (MSMEs), cooperatives, farmers, fishermen, local entrepreneurs, and businesses in underserved regions, allowing them to participate more fully in online commerce without relying on a single digital platform.

The initiative also broadens the scope of Indonesia-India cooperation, which now extends well beyond trade and investment to include defense, critical minerals, healthcare, education, telecommunications, and digital transformation.

By adopting ONDC architecture, Indonesia becomes one of the first countries to implement India's digital public infrastructure model for digital commerce.

The move further strengthens India's position as an emerging global leader in exporting open, interoperable, and trusted digital public infrastructure while positioning Indonesia to build a more inclusive digital economy over the coming decade.