The two central banks launched QR payment connectivity, advanced RMB infrastructure plans and agreed to explore a larger bilateral currency swap arrangement.
Bank Indonesia (BI) and the People’s Bank of China (PBOC) have agreed to expand cooperation on local currency transactions, cross-border QR payments and renminbi (RMB) infrastructure.
The agreements were reached during a meeting between BI Governor Perry Warjiyo and PBOC Governor Pan Gongsheng in Shanghai on June 11. The two central banks also agreed to explore increasing the value of their Bilateral Currency Swap Arrangement (BCSA).
“This cooperation also supports the efforts of both central banks in maintaining exchange rate stability,” BI said in a statement.
QR payments and payment infrastructure
BI, PBOC and the Hong Kong Monetary Authority signed an agreement to strengthen the local currency transaction framework.
The central banks also launched cross-border QR payments between Indonesia and China. The network currently includes 191 payment providers in China and 24 in Indonesia.
During the meeting, Bank Mandiri was designated as a direct participant in China’s Cross-border Interbank Payment System (CIPS), which is expected to improve transaction clearing and settlement efficiency.
Building Indonesia’s RMB ecosystem
BI and PBOC also signed an agreement to establish a Renminbi Clearing Arrangement in Indonesia, paving the way for an RMB Clearing Bank.
The initiative is intended to support trade, investment and other financial activities by ensuring sufficient RMB liquidity in Indonesia.
The agreements are expected to lower cross-border transaction costs while strengthening financial connectivity between the two countries.
