The People's Bank of China and Bank Indonesia jointly launched a bilateral local currency settlement framework and a QR code interoperability cooperation project

    On September 11, 2025, the People's Bank of China and Bank Indonesia jointly launched the bilateral Local Currency Trading (LCT) settlement framework and QR code interoperability cooperation project. The event featured a main venue in Beijing and a branch venue in Jakarta. Pan Gongsheng, Governor of the People's Bank of China, Perry Warjiyo, Governor of Bank Indonesia, and Zhou Haoli, Indonesian Ambassador to China, attended the main venue in Beijing. Wang Lutong, Chinese Ambassador to Indonesia, attended the branch venue in Jakarta and delivered remarks. Representatives from China's Ministry of Foreign Affairs, Ministry of Commerce, and Indonesian diplomatic missions in China, along with commercial banks, payment institutions, and industrial enterprises from both countries, were invited to attend.

    The central bank governors jointly announced the official launch of the LCT framework. In May 2025, witnessed by Premier Li Qiang and Indonesian President Prabowo Subianto, the two central banks signed a Memorandum of Understanding upgrading the 2020 framework for promoting local currency settlement in current account transactions and direct investment to the LCT framework. This expansion extends local currency settlement to all balance of payments items, further facilitating the use of local currencies in bilateral trade and investment.

    The China-Indonesia Cross-Border QR Code Interconnectivity Project commenced its two-way pilot operation. Expected to fully launch within 2025, this project utilizes local currency settlement and represents a significant advancement in bilateral payment cooperation.

    Pan Gongsheng emphasized that establishing the bilateral local currency settlement framework and cross-border QR code interoperability represent major achievements in China-Indonesia financial cooperation. In recent years, the deepening of financial ties between the two nations has benefited from growing political mutual trust and aligns with the evolving needs of their increasingly close economic and trade relations. As major developing countries, emerging market economies, and key players in the Global South, China and Indonesia share a responsibility to jointly advance the development of a more equitable and rational global governance system. Pan proposed that both countries continue to deepen cooperation in areas such as payment system connectivity, local currency usage, financial market opening and connectivity, and digital currencies.

    Perry Warjiyo noted that from January to July 2025, the scale of local currency settlements between Indonesia and China under the LCT framework reached US$6.23 billion, accounting for 45% of Indonesia's total local currency settlements with all trading partners. This event aims to enhance market understanding and participation in the LCT framework, reflecting both countries' vision to deepen financial system connectivity and jointly enhance financial security and inclusiveness. Moving forward, Bank Indonesia will continue to work closely with the People's Bank of China to deepen financial innovation and integration.

    On the same day, Pan Gongsheng held bilateral talks with Perry Warjiyo, exchanging views on financial cooperation between the two countries. Both sides agreed to establish a joint working mechanism between their central banks to further institutionalize bilateral cooperation and advance substantive financial collaboration. Xuan Changneng, Deputy Governor of the People's Bank of China, attended the related activities.