Summary
Indonesia and India are in "very advanced" talks to connect their QR payment systems by the end of 2026, following a meeting between President Prabowo Subianto and Indian Prime Minister Narendra Modi in Jakarta on July 7, 2026. The integration would link Indonesia's QRIS system with India's Unified Payments Interface (UPI), enabling tourists to pay in their respective currencies (rupiah or rupees) by scanning QR codes.
Announcement Details
High-Level Commitment
- PM Modi announced the integration plan during a joint press conference at the Merdeka Palace in Jakarta on July 7, 2026
- Modi: "India's UPI is going to integrate with Indonesia's payment system. This will strengthen both ease of doing business and ease of travel."
- President Prabowo confirmed both countries will work on establishing cross-border QR payment linkages
- The integration was among key issues discussed in the bilateral meeting
Timeline
- Indian Ambassador Sandeep Chakravorty: "I'm hopeful we will find the QRIS-UPI integration by the end of the year"
- Technical discussions between payment system operators are "at a very advanced stage"
- Technology integration process has reached a very advanced stage
- Prabowo-Modi's interest has sent a "message" to negotiators to quickly conclude talks
Technical Integration
How It Would Work
- Indonesian users scan Indian UPI QR codes to pay in rupiah
- Indian users scan Indonesian QRIS codes to pay in rupees
- Settlement occurs in local currencies (no dollar intermediation)
- Enables tourists to pay in home currency via QR scan
Technical Challenges
- Different payment architectures: QRIS (central bank-governed, single QR standard) vs UPI (multi-bank, app-based)
- Real-time settlement across different time zones
- Currency conversion and FX rate determination
- Compliance with both countries' financial regulations
- Anti-money laundering and fraud detection across borders
- Merchant settlement in local currencies
Existing QRIS Cross-Border Links
Indonesia has already connected QRIS with:
- China (launched April 30, 2026)
- Malaysia, Thailand, Singapore (earlier)
- South Korea (launched April 2026)
- Japan (in progress)
UPI International Footprint
UPI is already operational in:
- Singapore, UAE, Bhutan, Nepal, Sri Lanka, France, Mauritius, Qatar, Cambodia, Greece
- India has signed MoUs/agreements with 23 countries for Digital Public Infrastructure cooperation
Market Context
Tourism Data
- India: 222,470 visitors to Indonesia (January-May 2026)
- Third-largest source market after Australia (646,131) and China (243,389)
Broader Bilateral Cooperation
The payment linkage was part of a broader set of agreements:
- Critical mineral deals
- Defense cooperation (BrahMos missile deal)
- Prambanan Temple conservation
- Indonesia Open Network (ION) based on India's ONDC (Open Network for Digital Commerce)
- Solar power projects and nuclear technology cooperation
- Education (IIM/IIT campuses in Indonesia)
Why It Matters for the July 11 Digest
The QRIS-UPI linkage would connect two of the world's largest real-time payment systems, covering a combined population of over 1.5 billion people. For India, it extends UPI's international footprint in Southeast Asia. For Indonesia, it adds the world's most populous country to QRIS's growing cross-border network. The integration supports the broader trend of Asian payment system interoperability, reducing reliance on card networks for cross-border transactions. The use of local currency settlement (no dollar intermediation) aligns with both countries' de-dollarization strategies.