Bank of Indonesia deepens bilateral cooperation with People's Bank of China on QR payments and RMB clearing

Bank of Indonesia announced a package of measures agreed with the People's Bank of China at a high-level meeting in Shanghai to deepen bilateral monetary and financial cooperation. The main outcomes were an agreement to explore increasing the size of the bilateral currency swap arrangement, renewed commitments to expand the use of local currencies in bilateral transactions, and steps to strengthen cross-border payment connectivity between Indonesia and China. The package includes three operational measures. Bank of Indonesia, the People's Bank of China and the Hong Kong Monetary Authority signed a memorandum of understanding on Local Currency Transaction covering Indonesia and Hong Kong. Bank of Indonesia and the People's Bank of China also formally launched Indonesia-China cross-border QR payments, with participating payment system providers totaling 191 in China and 24 in Indonesia. In addition, Bank Mandiri was designated a direct participant in China's Cross-border Interbank Payment System, intended to improve clearing and settlement efficiency for Indonesia-China transactions. Separately, the two central banks signed a memorandum of understanding to establish a Renminbi clearing arrangement in Indonesia to support the domestic RMB ecosystem and ensure adequate RMB liquidity for trade, investment and financial activities. Future cooperation will focus on strengthening local currency transactions, developing financial infrastructure and expanding central bank cooperation, including the establishment of an RMB clearing bank in Indonesia.