The Director of Bank Indonesia's Beijing Representative Office 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 international expansion 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 Indonesian and Chinese entrepreneurs attending. During the process of international expansion, enterprises often overlook the key factor of cross-border financial transaction efficiency.
Efficient financial systems can help enterprises reduce costs, manage risks, and improve operational efficiency, therefore China-Indonesia financial cooperation is crucial. He introduced that Bank Indonesia and the People's Bank of China signed the 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, 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 accelerate transaction clearing speed, enhancing enterprises' exchange rate risk management capabilities amid global economic uncertainty, allowing them to focus more on business expansion and cooperation.
Currently, the China-Indonesia Local Currency Settlement Framework continues to develop, with participating enterprises and transaction volumes 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 interconnection through QR code systems, making it convenient for tourists, consumers, and merchants to use their own payment applications for transactions. Related services are planned to connect with Alipay in May 2026.
The Director of Bank Indonesia's Beijing Representative Office 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 international expansion 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 Indonesian and Chinese entrepreneurs attending. During the process of international expansion, enterprises often overlook the key factor of cross-border financial transaction efficiency.
Efficient financial systems can help enterprises reduce costs, manage risks, and improve operational efficiency, therefore China-Indonesia financial cooperation is crucial. He introduced that Bank Indonesia and the People's Bank of China signed the 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, 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 accelerate transaction clearing speed, enhancing enterprises' exchange rate risk management capabilities amid global economic uncertainty, allowing them to focus more on business expansion and cooperation.
Currently, the China-Indonesia Local Currency Settlement Framework continues to develop, with participating enterprises and transaction volumes 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 interconnection through QR code systems, making it convenient for tourists, consumers, and merchants to use their own payment applications for transactions. Related services are planned to connect with Alipay in May 2026.