- India and Indonesia are in the final stages of linking their national payment systems, UPI and QRIS, for cross-border settlements.
- The new mechanism will use local currencies—the Indian rupee and Indonesian rupiah—to sidestep US dollar volatility.
- Local currency settlements for exporters and importers are expected to launch by the end of 2026.
Indian Prime Minister Narendra Modi and Indonesian President Prabowo Subianto have confirmed that their central banks are finalizing the integration of India’s UPI with Indonesia’s QRIS for business payments. The announcement was made to establish a new payment mechanism initially proposed in 2024, as confirmed by both leaders.
The bilateral trade between the two nations exceeds $28 billion, according to data from the Ministry of External Affairs. Consequently, all settlements will be processed in local currencies—the Indian rupee and the Indonesian rupiah—protecting both economies from the volatility of the US dollar.
Indian Ambassador to Indonesia Sandeep Chakravorty revealed that both nations have fast-tracked the INR-IDR operations for launch. He stated that the local currency settlements for exporters and importers will be launched by the end of 2026.
Indonesia has already seen local currency payments surge 163% following the launch of its Local Currency Transaction framework (LCT). Meanwhile, India is pursuing the internationalization of the rupee, and this partnership sets the stage for that ambition.
Developing countries across Asia, South America, Eastern Europe, and Africa are increasingly pushing local currencies ahead of the US dollar. This paradigm shift is rewriting global financial mechanisms as nations reduce their dependence on US dollar reliance.
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