Indonesia, India Deepen AI, Critical Minerals Partnership as QR Payments Move Closer

JAKARTA, Investortrust.id — Indonesia and India agreed to significantly expand cooperation in strategic technologies, critical minerals, digital payments, and advanced manufacturing, as President Prabowo Subianto and Indian Prime Minister Narendra Modi unveiled a broad package of initiatives aimed at strengthening economic ties between two of Asia's fastest-growing major economies.

The agreements were announced following bilateral talks at Jakarta's Merdeka Palace on Tuesday and are expected to deepen collaboration across industries ranging from artificial intelligence to electric vehicle supply chains.

The expanded partnership reflects both countries' ambitions to become larger players in global technology and manufacturing supply chains.

For investors, cooperation on critical minerals, AI, digital infrastructure, and cross-border payments could create new opportunities in Indonesia's downstream mining, technology, fintech, and renewable energy sectors while strengthening trade between Southeast Asia and South Asia.

Prabowo said Indonesia and India would broaden cooperation in energy and advanced technology, including renewable energy development and civilian nuclear technology.

"Amid today's global environment, we are strengthening cooperation in energy security, including solar power development, while exchanging technology and capabilities in nuclear technology," Prabowo said after the bilateral meeting.

He added that both governments also agreed to expand cooperation in education, research, and innovation.

"We are confident these agreements can be implemented quickly and deliver tangible benefits for the people of both countries," Prabowo said.

Modi described artificial intelligence as one of the defining technologies of the century and said India is committed to building a stronger technology partnership with Indonesia.

"We signed important agreements today to enhance cooperation in AI, telecommunications, and digital public infrastructure. We also agreed to deepen collaboration between the startup ecosystems of our two countries," Modi said during the joint press conference.

The two leaders also agreed to strengthen cooperation in critical minerals and steel, sectors viewed as essential for securing supply chains supporting electric vehicles, battery manufacturing, and other high-tech industries.

"Important agreements have also been reached to strengthen supply chains in critical minerals and steel. A new partnership between our companies in stainless steel and rare earth magnets is also beginning," Modi said.

Beyond industrial cooperation, Indonesia and India agreed to accelerate integration of their national digital payment systems by linking Indonesia's Quick Response Code Indonesian Standard (QRIS) with India's Unified Payments Interface (UPI).

Prabowo said the cross-border QR payment system would improve transaction efficiency while strengthening financial connectivity between the two countries.

"We welcome the progress in discussions on cross-border QR payment linkage between Indonesia and India. The system is expected to improve transaction efficiency while strengthening financial resilience," he said.

Modi said connecting UPI with Indonesia's payment infrastructure would directly benefit businesses, tourists, and investors by making cross-border transactions faster and more convenient.

"We are very pleased that India's UPI will be integrated with Indonesia's payment system. This will provide a boost to ease of doing business and ease of travel," Modi said.

The two governments also reaffirmed their commitment to accelerate negotiations on an Indonesia-India Preferential Trade Agreement (PTA) and upgrade the ASEAN-India Trade in Goods Agreement (AITIGA) to expand bilateral trade and investment.

India further announced plans to establish a campus of the Indian Institute of Management (IIM) Bangalore in Indonesia, supporting talent development as both countries deepen cooperation in technology and innovation.