Jakarta. A Renminbi (RMB) Clearing Bank will be established in Indonesia to strengthen financial cooperation and local-currency transactions between Indonesia and China, Bank Indonesia Governor Perry Warjiyo said on Thursday.

Perry made the announcement on the sidelines of a meeting in Shanghai between Bank Indonesia and the People's Bank of China (PBOC), where officials agreed to deepen bilateral currency-swap cooperation and expand the use of local currencies in trade and investment transactions.

Perry and PBOC Governor Pan Gongsheng reaffirmed their commitment to increasing the use of local currencies in bilateral transactions and enhancing cross-border payment connectivity between the two countries.

“Going forward, financial cooperation will focus on strengthening local-currency transactions between Indonesia and China, developing financial infrastructure, and expanding central bank cooperation, including the establishment of an RMB Clearing Bank in Indonesia,” Perry said in a statement.

During the meeting, the two central banks signed a memorandum of understanding on the establishment of a Renminbi Clearing Arrangement in Indonesia. The initiative is intended to support the development of Indonesia's renminbi ecosystem by ensuring adequate liquidity for trade, investment, and other financial activities.

Hong Kong Included
Perry highlighted three additional milestones achieved during the discussions.

First, Perry, Pan, and Hong Kong Monetary Authority Chief Executive Eddie Yue signed a memorandum of understanding on local currency transactions involving Indonesia and Hong Kong.

“This cooperation strengthens the existing local currency transaction framework, encourages greater use of local currencies in bilateral transactions, improves transaction efficiency, and supports deeper regional financial-market integration,” Perry said.

Second, Bank Indonesia and the PBOC officially launched an Indonesia-China cross-border QR payment system, enabling retail transactions to be conducted more easily, quickly, efficiently, and securely while supporting stronger digital economic connectivity between the two countries.

Under the arrangement, the number of payment service providers supporting cross-border QR transactions will expand significantly, reaching 191 providers in China and 24 in Indonesia.

Third, Bank Mandiri was officially designated a direct participant in China's Cross-border Interbank Payment System (CIPS), a move expected to improve the efficiency of clearing and settlement processes for Indonesia-China transactions while strengthening cross-border payment infrastructure.

Pan said China and Indonesia, as major economies and strategic partners in the region, share a common responsibility to deepen bilateral economic and financial cooperation.

“Strengthening this cooperation is expected to contribute to regional prosperity and stability while supporting the economic resilience of both countries,” Pan said.

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