The People's Bank of China and the People's Bank of Indonesia jointly launch bilateral trading local currency settlement framework and QR code interconnection cooperation project

On September 11, 2025, the People's Bank of China and the Central Bank of Indonesia jointly launched the bilateral trading local currency settlement (LCT) framework and QR code interconnection cooperation project. The event has a main venue in Beijing and a branch venue in Jakarta. People's Bank of China President Pan Gongsheng, Indonesian Central Bank President Perry Vajiyo, Indonesian Ambassador to China Zhou Haoli was at the main venue in Beijing. Chinese Ambassador to Indonesia Wang Lutong attended the event and delivered speeches at the branch venue in Jakarta. Personnel of Chinese Ministry of Foreign Affairs, Ministry of Commerce, Indonesian embassy and consulates in China, and representatives of commercial banks, payment institutions, industrial enterprises and other institutions from both countries were invited to participate.

The governors of the two central banks jointly announced the official launch of the LCT framework. In May 2025, under the witness of Prime Minister Li Qiang and President Prabowo of Indonesia, the central banks of the two countries signed a memorandum of cooperation to upgrade the local currency settlement framework established in 2020 to the LCT framework, and expand the scope of local currency settlement to all balance of payments projects to further facilitate the use of local currency in bilateral trade and investment.

The China-Indonesian cross-border QR code interconnection project has officially launched a two-way pilot operation. The project is expected to be officially put into full production within 2025, and the adoption of local currency settlement method is an important progress in payment cooperation between the two parties.

Pan Gongsheng pointed out that establishing a bilateral transaction local currency settlement framework and interoperability of cross-border payment QR codes is an important achievement of China-Indonesia bilateral financial cooperation. In recent years, China-Indonesia financial cooperation has continued to deepen, thanks to the deepening political mutual trust between the two countries and has also adapted to the needs of the development of increasingly close economic and trade relations between the two countries. China and Indonesia are both major developing countries, emerging market countries and the global south, and it is necessary to jointly promote the development of the global governance system in a more fair and reasonable direction. Pan Gongsheng suggested that the two countries continue to deepen cooperation in the fields of payment system, local currency use, financial market openness, and digital currency.

Perry Vajiyo pointed out that from January to July 2025, the local currency settlement scale of Indonesia and China under the LCT framework reached US$6.23 billion, accounting for 45% of the total local currency settlement scale between Indonesia and all trading partners. This event aims to enhance market understanding and participation in the LCT framework, reflecting the two countries' beautiful vision to deepen the interconnection of the financial system and jointly enhance financial security and inclusiveness. In the future, the Central Bank of Indonesia will continue to work closely with the People's Bank of China to deepen financial innovation and integrated development.

On the same day, Pan Gongsheng held bilateral talks with Perry Vagio and exchanged views on bilateral financial cooperation. The two sides agreed to establish a joint working mechanism between the central banks of the two countries to further improve the level of mechanism-based bilateral cooperation and promote financial cooperation to deepen and practically implement. Xuan Chang, Vice President of the People's Bank of China, participated in related activities.

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