The India-Indonesia Economic and Financial Dialogue launched on Sunday will focus on enhancing bilateral trade and investment, financial services, and infrastructure development, among others. Announcing the launch of the Dialogue, Finance Minister Nirmala Sitharaman said it can play an instrumental role in reaching a common understanding on issues and taking forward the global agenda from the perspective of the emerging market and developing economies.

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This dialogue will facilitate better cooperation between India and Southeast Asia while contributing to global economic and financial stability, she said on the sideline of the third meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) being held in Gandhinagar.

The two-day FMCBG meeting co-chaired by Sitharaman and Reserve Bank Governor Shaktikanta Das begins in Gandhinagar on Monday.

Both the nations will be discussing issues of common interest that are mutually beneficial in enhancing relationships, she said.

"The areas of cooperation will include bilateral investment, financial services, and infrastructure development, among others. For instance, India has developed expertise in digital public infrastructure. It can provide time tested solutions for convenient and affordable digital payments which can assist Indonesia in achieving its financial inclusion goals," she said.

Both India and Indonesia are fast growing economies and are similar in many ways. Both are active members of multilateral organisations such as G20, WTO and East Asia Summit, she said, adding, India has taken over the G20 presidency from Indonesia and there are several legacy issues which we are continuing to take forward during our presidency.

Since the adoption of India's Look East policy in 1991 and the Act East Policy in the subsequent years, there has been a rapid development in bilateral relations between India and Indonesia in both commercial and cultural fields.

Indonesia has emerged as India's largest trading partner in the ASEAN region. The trade has increased eight fold since 2005 and it has touched USD 38 billion US dollars in the last year.

Speaking about the launch of Dialogue, Indonesia Finance Minister Sri Mulyani Indrawati said, both the countries have a lot of potential on trade.

The dialogue would help address the issue of development, not only for both countries but also globally, especially on the issue of climate change, global public health and also how we can strengthen the investment cooperation between the two countries, she said.

Both countries would discuss the possibility of cooperation in digital technology, payment systems under central banks and using more local currency.

She thanked Sitharman for India's strong support on Indonesia's own agenda related to the membership of Indonesia on the Financial Action Task Force.