The head of the Bank Indonesia Representative Office in Beijing recently actively promoted the "Indonesia-China Business Dialogue" event held in Changsha, Hunan Province, China, actively promoting the China-Indonesia Local Currency Settlement Framework (LCT), emphasizing the importance of efficient cross-border financial transactions for the internationalization of enterprises. The event was jointly organized by the Indonesian Embassy in China and the Indonesia Investment Promotion Center (IIPC) Beijing Office, with about 200 Chinese-Indonesian entrepreneurs attending. In the process of international expansion, companies often overlook the key factor of cross-border financial transaction efficiency.
An efficient financial system can help enterprises reduce costs, manage risks, and improve operational efficiency, making China-Indonesia financial cooperation crucial. He introduced that Bank Indonesia and the People's Bank of China signed a bilateral local currency settlement cooperation framework in May 2025, allowing trade and investment between the two countries to be settled directly in Indonesian rupiah and Chinese yuan, reducing reliance on third-party currencies, and significantly improving transaction efficiency and reducing exchange costs. Since the time difference between the two countries is only one hour, local currency settlement can also speed up transaction clearing, enhance enterprises' exchange rate risk management capabilities amid global economic uncertainty, and allow companies to focus more on business development and cooperation.
Currently, the China-Indonesia Local Currency Settlement Framework continues to develop, with participating enterprises and transaction volume growing significantly. China has become the most important partner country for local currency transactions outside ASEAN. In addition, the two countries are strengthening cross-border digital payment interconnectivity through QR code systems, making it convenient for tourists, consumers, and merchants to complete transactions using their domestic payment applications. The relevant services are planned to be integrated with Alipay in May 2026.
Bank Indonesia Promotes Bilateral Local Currency Settlement Cooperation
2026-03-19
Source
The head of the Bank Indonesia Representative Office in Beijing recently actively promoted the China-Indonesia Local Currency Settlement Framework (LCT) at the "Indonesia-China Business Dialogue" event held in Changsha, Hunan Province, China, emphasizing the importance of efficient cross-border financial transactions for the internationalization of enterprises. The event was jointly organized by the Indonesian Embassy in China and the Indonesia Investment Promotion Center (IIPC) Beijing Office, with about 200 Chinese-Indonesian
The head of the Bank Indonesia Representative Office in Beijing recently actively promoted the "Indonesia-China Business Dialogue" event held in Changsha, Hunan Province, China, actively promoting the China-Indonesia Local Currency Settlement Framework (LCT), emphasizing the importance of efficient cross-border financial transactions for the internationalization of enterprises. The event was jointly organized by the Indonesian Embassy in China and the Indonesia Investment Promotion Center (IIPC) Beijing Office, with about 200 Chinese-Indonesian entrepreneurs attending. In the process of international expansion, companies often overlook the key factor of cross-border financial transaction efficiency.
An efficient financial system can help enterprises reduce costs, manage risks, and improve operational efficiency, making China-Indonesia financial cooperation crucial. He introduced that Bank Indonesia and the People's Bank of China signed a bilateral local currency settlement cooperation framework in May 2025, allowing trade and investment between the two countries to be settled directly in Indonesian rupiah and Chinese yuan, reducing reliance on third-party currencies, and significantly improving transaction efficiency and reducing exchange costs. Since the time difference between the two countries is only one hour, local currency settlement can also speed up transaction clearing, enhance enterprises' exchange rate risk management capabilities amid global economic uncertainty, and allow companies to focus more on business development and cooperation.
Currently, the China-Indonesia Local Currency Settlement Framework continues to develop, with participating enterprises and transaction volume growing significantly. China has become the most important partner country for local currency transactions outside ASEAN. In addition, the two countries are strengthening cross-border digital payment interconnectivity through QR code systems, making it convenient for tourists, consumers, and merchants to complete transactions using their domestic payment applications. The relevant services are planned to be integrated with Alipay in May 2026.
