No. 24/183/DKom
Indonesia's G20 Presidency in 2022 has raised the salient issue of cross-border payment as a priority agenda. Towards that end, interoperability achieved through international cross-border cooperation must be strengthened amid increasing economic and financial digitalisation, while accelerating digitalisation for economic and financial inclusion, remittances, retail trade and MSMEs. This requires the support of fast, affordable, transparent and accessible cross-border payments that are available to everyone, while prioritising security. That was the key takeaway of the 'Cross-Border Payments' seminar featuring the governors of five central banks in the ASEAN region. The event was part of the fourth day of FEKDI 2022 as one of the side events for the G20 Finance Track: Finance and Central Bank Deputies (FCBD) Meeting and 3rd Finance Ministers and Central Bank Governors (FMCBG) Meeting in Nusa Dua, Bali (14/7).
BI Governor, Perry Warjiyo, explained how the payment system has experienced significant change over the past decade with innovation, technological development and the emerging perspective of efficient cross-border payments. Notwithstanding, several challenges remain, including high costs, slow speeds, limited access and inadequate transparency. Technological and regulatory breakthroughs are required, therefore, while strengthening international cooperation for a more inclusive digital economy, which will convey greater benefits for the public, country and industry.
“The future of payment digitalisation is here. Economic and financial digitalisation is a global initiative, with all members of the G20 and Financial Stability Board (FSB) concurring to strengthen and advancing cross-border payments. During Saudi Arabia's G20 Presidency in 2020, a G20 Cross-Border Payments Roadmap was agreed to overcome the challenges faced and serve as guidelines to develop payment connectivity. During Indonesia's G20 Presidency in 2022, payment digitalisation and cross-border payments have become a priority agenda, with the G20 and FSB agreeing to expand cross-border initiatives through to 2027. Payment system interlinking is being developed comprehensively, including protocol harmonisation for data exchange as well as monitoring roadmap implementation," stated Governor Perry.
Several countries in the ASEAN region are implementing bilateral cooperation for payment services using QR Code and fast payments based on local currency settlement (LCS). Moving forward, BI acknowledges an opportunity to expand existing bilateral cooperation for payment connectivity in ASEAN multilaterally as part of the efforts to strengthen economic integration in the region. Collaboration is the key for the initiatives to accelerate economic recovery and financial integration for the benefit of the community, especially MSMEs, migrant workers and tourists, inclusively.
The discussion also presented the Governor of the Saudi Central Bank, Fahad Almubarak, and Chairman of the Cross-Border Payments Coordination Group of the Financial Stability Board (FSB), Sir Jon Cunliffe. Several other central bank governors from the ASEAN region also participated in the seminar, namely the Deputy Governor of the Bank of Thailand, Ronadol Numnoda, Managing Director of the Monetary Authority of Singapore, Ravi Menon, Governor of Bank Negara Malaysia, Nor Shamsiah binti Mohd Yunus, and the Governor of Bangko Sentral ng Pilipinas, Felipe Medalla.
Public access to the discussions and events of FEKDI 2022, from 11-15th July, is available virtually via https://fekdi.co.id/.
Jakarta, 14th July 2022
Head of Communication Department
Erwin Haryono
Executive Director
Information about Bank Indonesia
Tel. 021-131, Email: bicara@bi.go.id
