PBOC and Bank Indonesia deepen financial cooperation
The People’s Bank of China and Bank Indonesia held their second Governors’ meeting on June 11, 2026. They discussed progress and future priorities for bilateral financial cooperation, releasing key deliverables.
Key deliverables strengthen financial ties
The second Governors’ meeting released several key deliverables under the Joint Work Program, strengthening financial cooperation between China and Indonesia.
An MOU for RMB clearing arrangements was signed, streamlining cross-border transactions.
A separate MOU on Local Currency Transaction (LCT) was signed by the PBOC, Bank Indonesia, and the Hong Kong Monetary Authority (HKMA), facilitating direct local currency settlements.
The China-Indonesia Cross-Border QR Code Payment Connectivity project officially launched, enhancing retail payment and tourism efficiency.
Bank Mandiri was also onboarded as a direct participant in the Cross-Border Interbank Payment System (CIPS), providing direct access to China's interbank payment infrastructure.
These initiatives foster a more integrated financial ecosystem.
Shared future vision drives cooperation
The Joint Work Program (JWP) was established by the PBOC and Bank Indonesia in September 2025, representing a key step towards building a China-Indonesia community with a shared future.
PBOC Governor Pan Gongsheng emphasized that China, as the world's second-largest economy, and Indonesia, as ASEAN's largest economy, can significantly contribute to regional prosperity and stability.
Deepening bilateral cooperation and strengthening economic and financial ties are central to this objective.
The PBOC expressed its commitment to elevating China-Indonesia financial cooperation, aiming for greater contributions to regional financial stability and economic growth.
Strategic alignment for regional stability
This second Governors’ meeting underscores a clear strategic alignment between China and Indonesia to bolster regional financial resilience.
The focus on local currency transactions and cross-border payment connectivity provides tangible mechanisms to reduce external dependencies and facilitate trade.
While primarily bilateral, these initiatives set a significant precedent for broader financial integration and stability across the ASEAN region.