The People's Bank of China and Bank Indonesia jointly announced the formal activation of their bilateral Local Currency Transaction (LCT) framework and the start of two-way pilot operations for cross-border QR code interoperability, expanding cooperation on local-currency settlement and retail payments connectivity. Under a memorandum of cooperation signed in May 2025, the central banks upgraded a 2020 arrangement that supported local-currency settlement for current-account transactions and direct investment into the LCT framework, extending the scope to all balance-of-payments items. The QR code interoperability project uses local-currency settlement and is expected to be fully launched within 2025. Bank Indonesia reported that local-currency settlement under the LCT framework reached USD 6.23 billion in January to July 2025, representing 45% of Indonesia’s total local-currency settlement with all trading partners. Following a bilateral meeting, the two central banks agreed to establish a joint working mechanism to further institutionalise cooperation.
Central Bank of the Republic of China 2025-09-11
People's Bank of China and Bank Indonesia activate the Local Currency Transaction settlement framework and launch a cross-border QR code payments pilot
The People's Bank of China and Bank Indonesia have activated their bilateral Local Currency Transaction framework and initiated pilot operations for cross-border QR code interoperability, enhancing local-currency settlement and retail payments connectivity. This upgrade extends a 2020 arrangement to cover all balance-of-payments items. Local-currency settlement under the framework reached USD 6.23 billion from January to July 2025, 45% of Indonesia's total local-currency settlement with trading partners.