No. 28/124/DKom
Given the importance of closer monetary and financial cooperation in an increasingly interconnected global economy, China and Indonesia joined forces to strengthen not only the financial resilience of their respective economies but also contribute to broader regional financial stability. As part of this shared commitment, Bank Indonesia (BI) and the People's Bank of China (PBOC) further deepened bilateral cooperation during a High-Level Meeting attended by Governor Perry Warjiyo and Governor Pan Gongsheng on 11 June 2026 in Shanghai, China.
In the meeting, the governors agreed to explore possibilities of increasing the size of bilateral currencies swap arrangement between BI and PBOC. Both central banks also reaffirmed the commitment to enhance the use of local currencies in bilateral transactions and strengthening cross-border payment connectivity between Indonesia and China through three key deliverables.
First, Governor Perry, Governor Pan, and Chief Executive of the Hong Kong Monetary Authority (HKMA), Eddie Yue, signed a Memorandum of Understanding (MoU) on Local Currency Transaction (LCT) covering Indonesia and Hong Kong. This cooperation strengthens the existing LCT framework to promote the use of local currencies in bilateral transactions, enhance transaction efficiency, and support deeper regional financial market integration.
Second, BI and the PBOC held the grand launching of the Indonesia–China cross-border QR payment implementation. Supported by the LCT framework, this initiative enables cross-border retail transactions to be conducted more easily, quickly, efficiently, inclusively, and reliably, while also supporting greater digital economic connectivity between the two countries. Through this grand launching, payment system providers supporting cross-border QR transactions will have broader reach and greater participation, with the number of providers reaching 191 in China and 24 in Indonesia.
Third, Bank Mandiri was officially designated as a direct participant in the Cross-border Interbank Payment System (CIPS), China's cross-border payment system. This participation aims to improve the efficiency of clearing and settlement for Indonesia–China transactions, while strengthening the resilience of cross-border payment infrastructure.
In response to these developments, Governor Perry emphasized that in the future, financial cooperation will strengthen local currency transaction between Indonesia and China, develop financial infrastructure, as well as expand central bank cooperation, including establishment of RMB clearing bank in Indonesia.
Governor Pan added that China and Indonesia, as major economies and strategic partners in the region, share a common responsibility to deepen bilateral economic and financial cooperation. Strengthening this cooperation is expected to contribute to regional prosperity and stability, supporting the resilience of both economies.
These achievements mark an important milestone in strengthening bilateral financial cooperation and are expected to help businesses reduce transaction processing costs for businesses and communities in both countries. During the meeting, BI and PBOC also signed a Memorandum of Understanding (MoU) for the Establishment of a Renminbi Clearing Arrangement in Indonesia to support the development of the domestic RMB ecosystem by ensuring adequate Renminbi liquidity for trade, investment, and financial activities.
BI and the PBOC's commitment to advancing economic and financial integration through expanded payment system connectivity and the development of more efficient, inclusive, and resilient financial markets will further strengthen economic stability and financial system resilience in both countries.
Shanghai, 11 June 2026
Media Contacts:
Communication Department
Ramdan Denny Prakoso
Executive Director
