Indonesia looks beyond UPI, eyes India's digital blueprint
Indonesia and India are advancing integration of Indonesia's national QR payment system (QRIS) with India's Unified Payments Interface (UPI), building on a digital cooperation MoU signed during the Indonesian President's state visit to India.
The bilateral collaboration extends beyond cross-border payments: Indonesia is adopting India's Open Network for Digital Commerce (ONDC) model to build its own open digital commerce infrastructure, with Indian companies providing technical assistance.
Indonesia is also studying India's models for digital identity (Aadhaar), direct benefit transfers, and public service delivery as blueprints for its own Digital Public Infrastructure (DPI) ecosystem.
India had, as of February 2026, signed DPI and India Stack cooperation agreements with 24 countries; Indonesia is among the most advanced in translating the framework from MoU to operational integration.
Both countries are positioning this collaboration as a Global South model for sovereign, open, and interoperable DPI — distinct from proprietary Western Big Tech platforms.
India's Digital Public Infrastructure (DPI) — The JAM Trinity and India Stack
India's Digital Public Infrastructure refers to a set of open, interoperable, population-scale digital platforms built on government mandate and open-source architecture. The foundational layer is the JAM Trinity: Jan Dhan (financial inclusion via bank accounts), Aadhaar (biometric digital identity), and Mobile (telecom penetration enabling last-mile access).
The "India Stack" — the layered architecture built on this foundation — includes four primary elements: (1) the Aadhaar-based identity and authentication layer; (2) the payments layer (UPI); (3) the data layer (DigiLocker, Account Aggregator); and (4) the commerce layer (ONDC). Each layer is designed as an open, API-driven public good, allowing private sector innovation on top of government-built infrastructure, rather than locking users into proprietary platforms.
Key Details
- Aadhaar enrolments: over 144 crore by March 2026, making it the world's largest biometric identity platform.
- Jan Dhan accounts: 57.78 crore by February 2026, with deposits exceeding ₹2.94 lakh crore (from 14.72 crore accounts and ₹15,670 crore in deposits in 2015).
- UPI transaction volume: grew from ~2 crore transactions in FY2016-17 to over 24,162 crore transactions in FY2025-26.
- ONDC (launched 2022): by mid-2026, connecting 20+ crore buyers, 5 lakh+ sellers across ~1,000 cities, processing ~9 million monthly transactions.
- DigiLocker: a cloud-based digital documents platform linked to Aadhaar for paperless service delivery.
Indonesia is not simply adopting UPI payments — it is studying the entire India Stack architecture as a model for building sovereign, interoperable digital infrastructure. The ONDC model (open network for e-commerce) is already being replicated by Indian companies in Indonesia, representing a new form of Digital South-South cooperation.
Unified Payments Interface (UPI) — Architecture and Global Expansion
UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). It enables instant inter-bank peer-to-peer and person-to-merchant transfers via mobile phone using a Virtual Payment Address (VPA), eliminating the need to share bank account details. UPI is built on the Immediate Payment Service (IMPS) infrastructure and operates 24/7/365.
The NPCI International Payments Ltd (NIPL), established in 2020, manages UPI's global rollout. India has signed bilateral payment linkage agreements allowing UPI to be used in foreign countries — both for Indian tourists and (in some cases) for local residents of partner countries.
Key Details
- UPI launched: April 2016 by NPCI, with RBI as the regulatory authority.
- Countries where UPI is live (as of 2026): UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, Qatar; agreements signed with 24 countries.
- UPI-QRIS (Indonesia's QR payment standard) integration: under active development; QRIS has over 50 million registered merchants in Indonesia.
- NIPL (NPCI International) incorporated: 2020, facilitates international UPI partnerships.
- UPI transaction value (FY2025-26): exceeded ₹260 lakh crore annualised, making it the world's largest real-time payment network by transaction volume.
The Indonesia-India UPI-QRIS linkage follows the template of India's earlier payment linkages with Singapore (UPI-PayNow, launched 2023) and Malaysia. The collaboration with Indonesia — the world's fourth most populous country — would significantly expand UPI's international footprint and reinforce India's position as the global DPI template-setter.
India as a DPI Exporter — G20, Global DPI Repository, and South-South Technology Cooperation
During its G20 Presidency in 2023, India institutionalised the concept of DPI as a global development priority, establishing the Global DPI Repository and launching "India Stack Global" to facilitate technology transfer of India's digital governance tools to developing nations. India positioned DPI — open-source, interoperable, population-scale platforms — as an alternative both to proprietary Big Tech models and to state-directed surveillance infrastructure.
The G20 New Delhi Declaration (September 2023) formally endorsed DPI as a framework for inclusive digital transformation, acknowledging India's model as a global reference. The World Bank, IMF, and UN have since incorporated DPI principles into their development financing guidance.
Key Details
- India Stack Global launched at G20 Presidency (2023); Global DPI Repository established.
- G20 New Delhi Declaration (September 2023) endorsed open, interoperable DPI as a development standard.
- India signed DPI cooperation MoUs with 24 countries as of February 2026.
- Countries adopting India Stack elements include Sri Lanka (UPI + DigiLocker), Trinidad and Tobago (first Caribbean UPI country), and several African nations (digital ID components).
- The World Bank's 2023 framework on DPI explicitly references Aadhaar and UPI as exemplars of successful open-infrastructure models.
Indonesia's engagement is the most advanced example of a large developing economy seeking not just interoperability with India's UPI but a comprehensive DPI strategy modelled on India Stack — spanning identity, commerce, and public services. This positions India-Indonesia as a potential leadership axis for Global South DPI advocacy.
Open Network for Digital Commerce (ONDC) — Architecture and Significance
The Open Network for Digital Commerce (ONDC) is a government-backed, non-profit initiative (Section 8 company under the Companies Act) incorporated in 2021 and operational since 2022. Unlike proprietary e-commerce platforms (Amazon, Flipkart), ONDC is a protocol-based open network — any buyer-side or seller-side application can plug into the network using open APIs, similar to how any email client can access the SMTP email protocol.
ONDC's objective is to democratise digital commerce by disaggregating the "buyer app" (search, discovery, payment) from the "seller app" (listing, inventory, fulfilment), preventing platform monopolisation and enabling small and medium enterprises to participate without depending on any single platform.
Key Details
- ONDC incorporated: December 2021; operational rollout began April 2022.
- Structure: Section 8 (not-for-profit) company; government holds equity alongside industry players (Tata, Infosys, NSE, etc.).
- Scale (mid-2026): 20+ crore buyers, 5 lakh+ sellers, ~1,000 cities, ~9 million monthly transactions.
- Categories covered: grocery, food delivery, mobility, electronics, fashion, financial services, healthcare.
- Indonesia replication: Indian companies are building Indonesia's open digital commerce network using ONDC's protocol architecture — an Indonesian-owned platform with Indian-origin technology.
Indonesia's adoption of ONDC architecture represents the first significant international replication of the ONDC model — a proof of concept for India's digital governance export strategy beyond payments.
- Aadhaar enrolments: 144+ crore (March 2026); world's largest biometric identity platform.
- Jan Dhan accounts: 57.78 crore (February 2026); deposits ₹2.94 lakh crore.
- UPI transactions (FY2025-26): 24,162+ crore transactions.
- UPI operational in 8+ countries; India has signed DPI MoUs with 24 countries (as of February 2026).
- QRIS (Indonesia's QR payment system) registered merchants: 50+ million.
- ONDC (mid-2026): 20+ crore buyers, 5 lakh+ sellers, ~9 million transactions/month.
- NPCI International Payments Ltd (NIPL) established: 2020, manages UPI's global rollout.
- UPI-PayNow (Singapore) linkage launched: February 2023 — the template for UPI-QRIS.
- G20 India Presidency (2023): Global DPI Repository and India Stack Global launched.
- G20 New Delhi Declaration (September 2023): endorsed open, interoperable DPI.
- Indonesia population: ~280 million (world's 4th largest); Indonesian digital ID (IKD) issued to 17+ million people.