BI-China Cooperation Deepens, Bank Mandiri Becomes Direct CIPS Participant
Bank Indonesia (BI) and the People’s Bank of China (PBOC) have agreed on bilateral cooperation following a high-level meeting attended by BI Governor Perry Warjiyo and PBOC Governor Pan Gongsheng in Shanghai, China, on Thursday (11/06/2026).
This cooperation supports the efforts of both central banks to maintain exchange rate stability by expanding the use of local currencies and strengthening financial infrastructure. During the meeting, both governors agreed to explore increasing the value of the Bilateral Currency Swap Arrangement (BCSA) between BI and PBOC.
The two central banks also reaffirmed their commitment to increasing the use of local currencies in bilateral transactions and strengthening cross-border payment connectivity between Indonesia and China through three main achievements.
First, Governor Perry, Governor Pan, and Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue signed a Memorandum of Understanding (MoU) regarding Local Currency Transactions (LCT) covering Indonesia and Hong Kong. This cooperation strengthens the existing LCT framework to encourage the use of local currencies in bilateral transactions, improve transaction efficiency, and support deeper regional financial market integration.
Second, BI and PBOC launched the implementation of Indonesia-China cross-border QR payments. Supported by the LCT framework, this initiative allows cross-border retail transactions to be conducted more easily, quickly, efficiently, inclusively, and reliably, while supporting closer digital economic connectivity between the two nations. Through this launch, payment system service providers supporting cross-border QR transactions will have wider reach and participation, with the number of providers reaching 191 in China and 24 in Indonesia.
Third, Bank Mandiri has been officially designated as a direct participant in the Cross-border Interbank Payment System (CIPS), China’s cross-border payment system. This participation aims to increase the efficiency of clearing and settlement processes for Indonesia-China transactions, while strengthening the resilience of cross-border payment infrastructure.
Responding to these developments, Governor Perry emphasised that future financial cooperation will strengthen local currency transactions between Indonesia and China, develop financial infrastructure, and expand central bank cooperation, including the establishment of an RMB Clearing Bank in Indonesia.
Governor Pan added that China and Indonesia, as major economies and strategic partners in the region, share a responsibility to deepen bilateral economic and financial cooperation. The strengthening of this cooperation is expected to contribute to regional prosperity and stability, while supporting the economic resilience of both countries.
These achievements mark a significant milestone in strengthening bilateral financial cooperation and are expected to help the business community reduce transaction processing costs for businesses and the public in both countries.
During the meeting, BI and PBOC also signed a Memorandum of Understanding (MoU) regarding the establishment of a Renminbi Clearing Arrangement in Indonesia to support the development of the domestic RMB ecosystem by providing adequate renminbi liquidity for trade, investment, and financial activities.
The commitment of BI and PBOC to promote economic and financial integration through the expansion of payment system connectivity and the development of more efficient, inclusive, and resilient financial markets is expected to further strengthen economic stability and financial system resilience in both countries.