The dialogue will bring together policymakers and financial regulators from both countries to discuss macroeconomic challenges, global economic prospects, and bilateral investment relations.
Mulyani Indrawati, Indonesia’s minister of finance, and Nirmala Sitharaman, Indian minister for finance and corporate affairs, have announced the establishment of the ‘India–Indonesia Economic and Financial Dialogue’ (EFD Dialogue). The announcement came during the Group of Twenty (G20) Finance Ministers and Central Bank Governors (FMCBG) meeting. The platform aims to fortify the cooperation between the two nations and promote shared understanding of global issues.
The EFD dialogue is designed to enhance collaboration on bilateral and international economic and financial matters. The dialogue will bring together policymakers and financial regulators from both countries to discuss macroeconomic challenges, global economic prospects, and bilateral investment relations. Furthermore, the platform will extend cooperation in G20 and ASEAN matters, the ministry of finance said in a press release.
Acknowledging the potential of the digital economy, both finance ministers highlighted the opportunity for collaboration in the field of fintech for financial inclusion. The shared goal is to harness the power of financial technology to broaden access to financial services.
With the backdrop of fast-growing economies, India and Indonesia see this dialogue as a unique opportunity for mutual learning and policy coordination. Both countries have been active in multilateral organisations such as G-20, WTO, and the East Asia Summit, and the dialogue aims to leverage this involvement for mutual benefit.
The ministers concluded with optimism, envisioning that the EFD dialogue will deepen the bilateral relationship between India and Indonesia. Additionally, they believe it will contribute to the broader economic and financial stability of Southeast Asia and the world at large, underlining the global significance of this initiative.
“The evolution of India’s ‘Look East Policy’ in 1991, followed by the ‘Act East Policy’, has facilitated a rapid development in our bilateral relations, particularly in the commercial and cultural fields,” said Sitharaman. “Indonesia has emerged as India’s largest trading partner in the ASEAN region, with our trade seeing an eightfold increase since 2005, reaching an impressive $38 billion in financial year (FY) 2022-23.”
