Bank Indonesia (BI) and People's Bank of China (PBC) today announced the launching of the framework for cooperation to promote the use of local currencies for settlement of bilateral trade and direct investment between China and Indonesia. This is in accordance with the Memorandum of Cooperation between Bank Indonesia and People's Bank of China that was signed on September 30, 2020.

This initiative is part of the continuous effort to promote a wider use of local currencies to facilitate trade and direct investment in these countries. The establishment of this framework marks a key milestone in strengthening bilateral financial cooperation between BI and PBC. The framework includes, among others, promotion of the direct quotation between the Indonesian Rupiah and the Chinese Yuan as well as the relaxation of relevant rules and regulations to enhance the usage of local currencies.

In order to support the operationalisation of the framework, the following banks have been selected as ACCD (Appointed Cross Currency Dealer) to cooperate and to undertake the transactions of the Indonesian Rupiah and the Chinese Yuan under this initiative.

Indonesia

PT. Bank Central Asia, Tbk

Bank of China (Hongkong), Ltd

PT. Bank China Construction Bank Indonesia, Tbk

PT. Bank Danamon Indonesia, Tbk

PT. Bank ICBC Indonesia

PT. Bank Mandiri (Persero), Tbk

PT. Bank Maybank Indonesia, Tbk

PT. Bank Negara Indonesia (Persero), Tbk

PT. Bank OCBC NISP, Tbk

PT. Bank Permata, Tbk

PT. Bank Rakyat Indonesia (Persero), Tbk

PT. Bank UOB Indonesia

China

Agriculture Bank of China

Bank of China

Bank of Ningbo

Bank Mandiri Shanghai Branch

China Construction Bank

Industrial and Commercial Bank of China

Maybank Shanghai Branch

United Overseas Bank (China) Limited

The authorities believe that this new initiative would positively contribute to encouraging the use of local currencies for settlement of trade and direct investment between Indonesia and China. The framework will be effective from September 6, 2021.

Bank Indonesia

People's Bank of China

September 6, 2021