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Indonesia and China have initiated cross-border QR code interoperability, marking a major milestone in strengthening financial collaboration and advancing digital payment integration between the two nations. Announced by Bank Indonesia yesterday, this system allows users from both countries to make retail payments effortlessly by scanning QR codes across borders. It aims to boost tourism, enhance trade activities, and facilitate cultural exchanges, all while promoting regional payment connectivity across Asia.
This partnership aligns with a broader effort by Indonesia’s central bank to encourage transactions in the local currency and diminish dependence on global reserve currencies like the US dollar for cross-border payments. During the launch event in Jakarta, the Governor of Bank Indonesia highlighted that the collaboration signified concrete progress in bilateral financial integration.
He remarked, “Now, whether Indonesians visit China or Chinese travelers come to Indonesia, they can use QRIS. Simply use your mobile device.” The project is based on a direct settlement mechanism between the Indonesian rupiah and the Chinese yuan, eliminating the need for third-party currencies. This approach is expected to lower exchange rate risks, decrease transaction costs, and bolster financial independence for both countries.
A representative from UnionPay International Southeast Asia noted that this development marks a significant leap forward in streamlining cross-border payments. “It makes transactions smoother and simpler. Previously, travelers needed to exchange currency or withdraw cash, but now they can just scan QR codes using familiar apps such as UnionPay Yunshanfu or Alipay,” he explained. He added that this collaboration also signifies deeper integration of financial systems, including risk management, anti-money laundering measures, and data sharing standards.
Meanwhile, Liu Yue, assistant country manager at the Bank of China’s Jakarta Branch, highlighted the importance of financial institutions in ensuring efficient currency exchange and settlement processes. “Using the Local Currency Transaction mechanism, especially direct pairing between the rupiah and the yuan, increases efficiency and reduces costs, providing benefits to consumers,” Liu said. He also emphasized that the QR code interoperability addresses long-standing payment challenges faced by tourists and business travelers.
Beyond the technical aspects, the initiative is part of a larger strategic vision centered on digital sovereignty and innovation. Indonesia’s QRIS system, launched in 2019, consolidates various payment platforms into a single standardized approach, enabling interoperability across banks and digital wallets. Its expansion across borders builds on previous efforts in Southeast Asia and aims to extend globally, including collaborations with major economies like China and Japan.
This launch coincides with Indonesia’s burgeoning digital economy. Bank Indonesia reported over 14.4 billion digital transactions in the first quarter of this year, representing a 34% increase compared to the previous year. Transactions through QRIS alone soared by 119%, driven by heightened adoption among small businesses and retail consumers.
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