India and Indonesia launch economic dialogue to strengthen cooperation

Mulyani Indrawati, Indonesia’s Minister of Finance, and Nirmala Sitharaman, Indian Minister of Finance and Enterprise Affairs, have announced the establishment of the “India-Indonesia Economic and Financial Dialogue” (EFD Dialogue). The announcement came during the meeting of finance ministers and central bank governors of the Group of Twenty (G20) (FMCBG). The aim of the platform is to strengthen cooperation between the two nations and promote a common understanding of global problems.

The EFD dialogue aims to improve cooperation on bilateral and international economic and financial issues. The dialogue brings together policymakers and financial regulators from both countries to discuss macroeconomic challenges, global economic prospects and bilateral investment relationships. In addition, the platform will expand cooperation on G20 and ASEAN affairs, according to a press release from the Ministry of Finance.

Both finance ministers recognized the potential of the digital economy and emphasized the possibility of fintech cooperation on financial inclusion. The common goal is to harness the power of financial technology to expand access to financial services.

Against the backdrop of rapidly 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 organizations such as the G-20, the WTO and the East Asia Summit, and the dialogue aims to leverage this engagement for mutual benefit.

The ministers concluded with optimism, believing that the EVS dialogue will deepen bilateral relations between India and Indonesia. In addition, they believe this will contribute to the overall economic and financial stability of Southeast Asia and the world at large, underscoring the global importance of this initiative.

“The development of India’s ‘Look East Policy’ in 1991, followed by the ‘Act East Policy’, has enabled rapid development of our bilateral relations, particularly in the commercial and cultural spheres,” Sitharaman said. “Indonesia has become India’s largest trading partner in the ASEAN region. Our trade has grown eight-fold since 2005, reaching an impressive $38 billion in fiscal year (FY) 2022-23.”

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