No: 27/215/DKom
Indonesia and China have continued strengthening their commitment to using Local Currency Transactions (LCT) in bilateral trade and investment. This scheme provides tangible benefits for businesses and the public through more efficient transactions, lower conversion costs as well as support for financial stability. In the period from January-July 2025, the value of LCT transactions between Indonesia and China reached USD6.23 billion (equivalent), up from USD2.17 billion (equivalent) in the same period of the previous year. This achievement of the LCT cooperation between Indonesia and China represent an important milestone in celebrating 75 years of diplomatic relations between the two countries. That was a key takeaway of the meeting between the Governor of Bank Indonesia, Perry Warjiyo, and the Governor of the People's Bank of China (PBoC), Pan Gongsheng, in Beijing today (11/09/25).
Governor Perry conveyed his confidence that business participation would continue to expand alongside the economic cooperation between Indonesia and China. “These measures reflect a shared commitment to strengthening bilateral collaboration and building a more connected, secure and inclusive financial system. Moving forward, Bank Indonesia will continue cooperating with the PBoC and other stakeholders to nurture innovation and expand financial integration."
Meanwhile, Governor Pan acknowledged that, as two major emerging markets in Asia, China and Indonesia have a shared responsibility in facing current global dynamics. Trade and investment relations between China and Indonesia have been built on a solid foundation of financial cooperation. Strengthening this partnership, therefore, is critical.
Commitment to strengthening LCT with China is also consistent with Indonesia's LCT achievements with other partner countries. In the period from January-July 2025, the realisation of LCT transactions between Indonesia and other partner countries continued to increase, including Malaysia (equivalent to USD2.03 billion), Thailand (equivalent to USD644 million), Japan (equivalent to USD5.08 billion), South Korea (equivalent to USD85 million), and the United Arab Emirates (equivalent to USD72 million).
Bank Indonesia and the PBoC also took the opportunity to conduct a limited sandbox trial of QRIS Cross-Border payment connectivity between Indonesia and China. This initiative follows the commitments pledged by both central banks to strengthening cross-border payment connectivity. The sandbox trial not only marks technological advancements but also promotes inclusion, affordability and broader access to financial services. This activity was also conducted in participation with the Indonesia Payment System Association (ASPI) and a payment industry partner from China, namely UnionPay International.
The implementation of LCT and QRIS Cross-Border initiatives between Indonesia and China reflect close synergy between Bank Indonesia, PBoC, payment system associations and financial institutions in both countries. Not only did this initiative strengthen bilateral economic relations but also support the creation of a solid, inclusive and competitive digital financial ecosystem in the region.
Jakarta, 11th September 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
