Indonesia and China Expand Local-Currency Settlement Cooperation
Beijing, May 2025 — The People’s Bank of China (PBOC) and Bank Indonesia have signed a new Memorandum of Understanding (MoU) to enhance bilateral cooperation in local-currency settlements, aiming to strengthen financial ties between the two nations. The agreement was signed by PBOC Governor Pan Gongsheng and Bank Indonesia Governor Perry Warjiyo in Beijing.
Building on the 2020 MoU—which covered only current account transactions and direct investments—the updated agreement broadens the scope to include capital and financial account transactions, promoting wider use of the Chinese yuan and Indonesian rupiah in cross-border trade and investment.
This initiative reflects both countries’ shared goal of reducing dependency on the US dollar and fostering a more resilient regional financial architecture.
During the visit, Chinese Premier Li Qiang met with Indonesian President Prabowo Subianto, reaffirming China’s commitment to elevate mutual trust and strategic coordination. Li emphasized further synergy between development strategies and deeper collaboration under the Belt and Road Initiative (BRI).
Key focus areas include:
- Strengthening the Jakarta-Bandung High-Speed Railway as a “golden brand” of cooperation
- Advancing the Regional Comprehensive Economic Corridor
- Promoting the ‘Two Countries, Twin Parks’ industrial partnership
The expanded MoU is seen as a step forward in boosting regional economic integration and promoting financial innovation in Asia.
