Jakarta. Bank Indonesia is running a pilot project for a cross-border quick response, or QR, payment linkage with fellow central banks Bank Negara Malaysia and Bank of Thailand, in a bid to propel digitalization and make transactions between the said countries more efficient.

“So consumers and merchants in these countries can make and accept payments instantly with the QR code,” Doni P Joewono, the deputy governor of Bank Indonesia, said at an Indonesia’s G20 Presidency side-event on Tuesday.

According to Doni, the cross-border QR payment will enable more efficient transactions, while also spurring the digitalization of trade and businesses.

The linkage also helps maintain macroeconomic stability by promoting a more extensive use of the local currency settlement (LCS) framework.

“The initiative of linking cross-border payments through the interconnection of national QR codes of the two countries is an implementation of the Indonesian Payment System Blueprint 2025,” Doni said, referring to Bank Indonesia’s plan on navigating the payment system industry amid the digital economy era.

“Digitalization will help transform Indonesia into a high-income developed nation,” he said.

Digital payment services will also boost financial inclusion for the micro, small, and medium enterprises (MSMEs), particularly those who were still lacking in financial literacy.

According to Kaspar Situmorang, a deputy head at the Indonesian Chamber of Commerce and Industry (Kadin), the cross-border QR payment will become a boon to the pandemic-battered MSMEs and tourism sector. 

"We are optimistic that this will help MSMEs and the tourism sector who have been under pressure throughout the pandemic,” Kaspar said.

Add as a preferred source on Google +