The People's Bank of China and Bank Indonesia signed a memorandum of understanding to establish a cooperation framework to promote settlement of bilateral transactions in the two countries’ local currencies. The MOU expands and upgrades the 30 September 2020 framework that applied to current account transactions and direct investment, extending the scope to all transactions including capital and financial account transactions. Within the bounds of both countries’ laws and regulations, it also aims to promote payment connectivity, increase the use of local currencies in bilateral trade and investment, and strengthen cooperation between the two countries’ monetary and financial markets.
Central Bank of the Republic of China 2025-05-25
People's Bank of China and Bank Indonesia sign MOU expanding local currency settlement framework to all bilateral transactions
The People's Bank of China and Bank Indonesia signed a memorandum of understanding to enhance bilateral transaction settlements in local currencies. This expands the 2020 framework to include all transactions, promoting payment connectivity and increased local currency use in trade and investment. The agreement aims to strengthen cooperation between the two countries' monetary and financial markets.