India and Indonesia to launch “India – Indonesia Economic and Financial Dialogue”

About the news

Nirmala Sitharaman, during the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Gandhinagar, announced the commencement of the “India – Indonesia Economic and Financial Dialogue.” This dialogue intends to strengthen cooperation and promote mutual understanding on global issues between the two nations. It will serve as a platform for discussing shared interests and exploring mutually beneficial matters.

Areas of Cooperation: India-Indonesia Economic and Financial Dialogue

The areas of cooperation span across diverse domains, including macroeconomic challenges, global economic prospects, bilateral investment relations, and collaborative efforts concerning G20 and ASEAN matters. Recognizing the pivotal role of the digital economy, there is significant potential for collaborative endeavors in fintech to drive forward financial inclusion goals. India’s proficiency in digital public infrastructure will offer established solutions for accessible and cost-effective digital payments to assist Indonesia in achieving its financial inclusion goals.

India-Indonesia Bilateral Relations

Since the adoption of India’s “Look East Policy” in 1991 and the subsequent “Act East Policy” announced in November 2014, bilateral relations between India and Indonesia have witnessed significant growth in both commercial and cultural domains. Indonesia has emerged as India’s largest trading partner in the ASEAN region, with trade between the two countries increasing eightfold since 2005, reaching a remarkable USD 38 billion last year.

The Act East Policy: Strengthening India’s Regional Influence and Economic Development

The Act East policy, implemented by the Indian government, aims to strengthen its regional power and counterbalance the strategic influence of China by fostering extensive economic and strategic relations with Southeast Asian nations. By adopting a proactive and pragmatic approach, the policy primarily focuses on economic and security integration, with an expanded scope that encompasses South East Asia and East Asia.

Enhancing Collaboration in Economic and Financial Matters

The EFD (Economic and Financial Dialogue ) aims to strengthen collaboration on bilateral and international economic and financial matters by facilitating the participation of economic policymakers and financial regulators from both India and Indonesia. With both countries being fast-growing economies and actively involved in multilateral organizations like G-20, WTO, and East Asia Summit, this Dialogue provides a valuable platform for mutual learning and policy coordination.

Key takeaways for competitive examinations

  • Minister of Finance of Indonesia: Sri Mulyani

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saurabh

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