BI Governor Perry Warjiyo on Thursday said the initiatives would help expand local currency transactions, strengthen financial infrastructure, and deepen central bank collaboration, including through the establishment of an RMB Clearing Bank in Indonesia.
Meanwhile, PBOC Governor Pan Gongsheng added that China and Indonesia, as major economies and strategic partners in the region, have a shared responsibility to deepen bilateral economic and financial cooperation.
At a High Level Meeting in Shanghai on Thursday, the two governors agreed to expand the size of their Bilateral Currency Swap Arrangement (BCSA).
Governor Perry, Governor Pan, and Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue also signed a Memorandum of Understanding (MoU) regarding Local Currency Transactions (LCT) covering Indonesia and Hong Kong.
The collaboration builds on the existing LCT framework by promoting the use of local currencies in bilateral transactions, enhancing transaction efficiency, and advancing regional financial market integration.
On the occasion, BI and PBOC also launched the implementation of QR payments across the Indonesia-China border.
The initiative is expected to simplify cross-border retail transactions while supporting deeper digital economic integration between the two countries.
The arrangement will expand the reach and participation of payment service providers supporting cross-border QR transactions, bringing the total to 191 providers in China and 24 in Indonesia.
Furthermore, the state-owned banking firm, Mandiri, was appointed as a direct participant in the Cross-border Interbank Payment System (CIPS), the Chinese cross-border payment system.
This participation aims to improve the efficiency of the clearing and settlement process for Indonesia-China transactions while strengthening the resilience of cross-border payment infrastructure.
During the meeting, BI and PBOC also signed an MoU on the Establishment of a Renminbi Clearing Arrangement in Indonesia to support the development of the domestic RMB ecosystem by providing Renminbi liquidity to support trade, investment, and broader financial activities.
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Translator: Rizka Khaerunnisa, Resinta Sulistiyandari
Editor: M Razi Rahman
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