Jakarta. Indonesia wants to link its QR-based payment system, QRIS, with that of Timor-Leste as ASEAN nations cut reliance on the American dollar.

Their central banks inked a memorandum of understanding in Jakarta on Friday. Bank Indonesia and Banco Central de Timor-Leste (BCTL) agreed to work together on payment and settlement systems, as well as digital financial innovations.

“The agreement provides a solid foundation for developing [bilateral] payment connectivity, … which includes exploring the cross-border QRIS,” Bank Indonesia spokesperson Ramdan Denny Prakoso said.

He said the initiative is expected to facilitate “simpler, more efficient, secure, and inclusive cross-border payments”. The bank did not disclose the timeline for the linkage. 

Timor-Leste launched its QR code standard TUQR for digital payments about two weeks ago. Just like QRIS, the system lets users make payments using their mobile phones by scanning the QR code. If their payment systems are connected, it should reduce the use of the US dollar as an intermediary when their people visit each other’s countries.

The plan came amidst ASEAN’s push to boost regional economic integration through QR payment connectivity. QRIS is already available in Singapore, Thailand, and Malaysia. Timor-Leste had only joined the Southeast Asian bloc last year.

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