Bank Indonesia and China's Central Bank Strengthen Cooperation to Boost Economic Stability

China’s Ambassador to Indonesia, Wang Lutong, stated that the deepening cooperation between Bank Indonesia (BI) and the People’s Bank of China (PBOC) is contributing positively to advancing the economy and maintaining financial stability for both nations. “Financial cooperation between China and Indonesia continues to deepen and has yielded significant results. Financial cooperation contributes positively to promoting economic prosperity and maintaining financial stability,” Ambassador Wang said in a written statement from the Chinese Embassy in Jakarta, confirmed on Friday (12/6/2026). He noted that the strengthened cooperation was achieved through the Indonesia-China Central Bank Governors’ Meeting under the Joint Working Program (JWP) on Thursday (11/6/2026), which successfully reached four agreements. These agreements include a Memorandum of Understanding (MoU) on the establishment of a Renminbi Clearing Arrangement and a trilateral MoU between PBOC, BI, and the Hong Kong Monetary Authority (HKMA) regarding local currency transactions (LCT). Additionally, the two central banks agreed on the adoption of a China-Indonesia cross-border QR code payment system, the implementation of which was recently launched. Another cooperation initiative involves the participation of Bank Mandiri as a direct participant in the Cross-Border Interbank Payment System (CIPS), an international payment infrastructure based on the renminbi operated under the auspices of the PBOC. According to Ambassador Wang, the strengthening of financial sector cooperation aligns with the positive trend in trade between Indonesia and China. Citing Indonesian government data, he conveyed that direct Chinese investment in Indonesia in 2025 reached $7.5 billion. “Meanwhile, according to Chinese statistics, bilateral trade value in 2025 reached a record $167.49 billion, surpassing $150 billion for the first time,” Ambassador Wang said. The partnership has made China Indonesia’s largest trading partner for 13 consecutive years and one of the top three sources of foreign direct investment in Indonesia for 10 consecutive years, the Ambassador added. “China and Indonesia continue to deepen cooperation in the financial sector, which will further strengthen the ease of bilateral trade and investment,” Wang said. As a result, it is hoped that trade and investment between the two countries will continue to grow, and the jointly built industrial and supply chain cooperation will become even stronger. He also expressed optimism that Indonesia-China cooperation will expand further into currently developing strategic sectors, including the digital economy, artificial intelligence (AI), and electric vehicles.