RI-China Central Bank Cooperation Strengthens Joint Economic Stability

China’s Ambassador to Indonesia, Wang Lutong, stated that progress in cooperation between Bank Indonesia (BI) and the People’s Bank of China (PBOC) has contributed positively to advancing the economy and maintaining financial stability in both countries. “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. He noted that the strengthening of this cooperation was achieved through the Indonesia-China Central Bank Governors’ Meeting under the Joint Work Programme (JWB) on Thursday (11/6), which resulted in four agreements. These agreements include a Memorandum of Understanding (MoU) on the establishment of a Renminbi Clearing Arrangement, and a trilateral MoU between the 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 cross-border QR code payment system between China and Indonesia, the implementation of which was recently launched. Further cooperation includes 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 operating 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 data from the Indonesian government, he conveyed that China’s direct investment in Indonesia in 2025 reached 7.5 billion US dollars. The established 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 stated. “China and Indonesia continue to deepen cooperation in the financial sector, which will further strengthen the ease of bilateral trade and investment,” Wang said. Consequently, it is hoped that trade and investment between the two countries will continue to grow, and the cooperation on industrial and supply chains that has been jointly established can be further strengthened. He is also optimistic that Indonesia-China cooperation will expand into emerging strategic sectors, including the digital economy, artificial intelligence (AI), and electric vehicles.