Indonesia-China MoU to expand local-currency settlement cooperation

26 May '25

1 min read

Indonesia-China MoU to expand local-currency settlement cooperation

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Insights

China's central bank and Bank Indonesia have signed an MoU to set up a cooperation framework to promote bilateral transaction settlement in local currencies.
Its scope will be expanded to include transactions made through capital and financial accounts.
Meanwhile, Premier Li Qiang said China is ready to work with Indonesia to elevate mutual trust and strategic coordination to a higher level.

The People's Bank of China (PBOC) and Bank Indonesia yesterday signed a memorandum of understanding (MoU) to set up a cooperation framework to promote bilateral transaction settlement in local currencies, the Chinese central bank said.

The MoU, signed by PBOC governor Pan Gongsheng and his Indonesian counterpart Perry Warjiyo in Beijing, expands upon a September 2020 MoU that was limited to current account transactions and direct investment.

The scope of bilateral local currency settlement cooperation will be expanded to include transactions made through capital and financial accounts, PBOC said.

Meanwhile, Premier Li Qiang said China is ready to work with Indonesia to elevate mutual trust and strategic coordination to a higher level. He said this while meeting Indonesian President Prabowo Subianto during his official visit to the Southeast Asian nation.

Li said China is ready to work with Indonesia to enhance the alignment of development strategies, and deepen high-quality Belt and Road cooperation, especially by optimising and strengthening landmark projects.

He urged both sides to further enhance the ‘golden brand’ of the Jakarta-Bandung High-Speed Railway, and promote the construction of the Regional Comprehensive Economic Corridor and the ‘Two Countries, Twin Parks’ project.

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