BI-China Cooperation Deepens, Bank Mandiri Becomes Direct CIPS Participant

Bank Indonesia (BI) and the People’s Bank of China (PBOC) agreed on bilateral cooperation during a high-level meeting attended by BI Governor Perry Warjiyo and PBOC Governor Pan Gongsheng on Thursday (11/6/2026) in Shanghai, China. This cooperation simultaneously supports the efforts of both central banks to maintain exchange rate stability through expanded use of local currencies and strengthening financial infrastructure. In the meeting, the two governors agreed to explore increasing the value of the Bilateral Currency Swap Arrangement (BCSA) between BI and the PBOC. Both central banks also reaffirmed their commitment to increase the use of local currencies in bilateral transactions and to strengthen cross-border payment connectivity between Indonesia and China through three main achievements. First, Governor Perry, Governor Pan, and Chief Executive of the Hong Kong Monetary Authority (HKMA) Eddie Yue signed a Memorandum of Understanding (MoU) on Local Currency Transaction (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 the PBOC launched the implementation of Indonesia-China cross-border QR payments. Supported by the LCT framework, this initiative enables cross-border retail transactions to be conducted more easily, quickly, efficiently, inclusively, and reliably, whilst supporting closer digital economic connectivity between the two countries. Through this launch, payment system service providers supporting cross-border QR transactions will have broader reach and participation, with the number of providers reaching 191 in China and 24 in Indonesia. Third, Bank Mandiri was 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 the clearing and settlement process for Indonesia-China transactions, whilst strengthening the resilience of cross-border payment infrastructure. Responding to these developments, Governor Perry emphasised that going forward, financial cooperation will strengthen local currency transactions between Indonesia and China, develop financial infrastructure, and expand cooperation between central banks, 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, have a shared responsibility to deepen bilateral economic and financial cooperation. This enhanced cooperation is expected to contribute to regional prosperity and stability, whilst supporting the economic resilience of both countries. These achievements mark an important milestone in strengthening bilateral financial cooperation and are expected to help businesses reduce transaction processing costs for business actors and the public in both countries. In the meeting, BI and the 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 through the provision of adequate renminbi liquidity for trade, investment, and financial activities.