On September 11, 2025, the People’s Bank of China (PBOC) and Bank Indonesia (BI) launched the China-Indonesia Local Currency Transaction (LCT) Framework and QR code connectivity. The event featured a main venue in Beijing and a branch venue in Jakarta. The PBOC Governor Pan Gongsheng, BI Governor Perry Warjiyo, and Indonesian Ambassador to China Djauhari Oratmangun delivered speeches in Beijing, while Chinese Ambassador to Indonesia Wang Lutong spoke in Jakarta. Representatives from China’s Ministry of Foreign Affairs and Ministry of Commerce, Indonesian Embassy in China, as well as commercial banks, payment institutions, and enterprises from both countries were also present.
The two central bank governors announced the official launch of the LCT Framework. The PBOC and BI established the Local Currency Settlement (LCS) Framework in 2020 to facilitate current account transactions and direct investment settlements in local currencies. In May 2025, under the witness of Chinese Premier Li Qiang and Indonesian President Prabowo Subianto, the two central banks signed an MoU to upgrade the LCS to the LCT Framework, expanding local currency settlement to all Balance of Payments (BOP) items and further promoting the use of local currencies in bilateral trade and investment.
The two sides also kicked off the pilot of China-Indonesia Cross-Border QR Code Connectivity in both countries. The project, which will use local currencies for settlement, is expected to be fully operational this year. It marks an important progress in payment cooperation.
In his speech, Pan Gongsheng highlighted that the LCT Framework and QR code connectivity are important outcomes in the two countries’ bilateral financial cooperation. Deepening financial ties between China and Indonesia in recent years reflect not only growing bilateral economic and trade relations, but also stronger political mutual trust. As major developing countries, emerging market economies, and key members of the Global South, China and Indonesia can inject certainty into an uncertain world and promote a more fair and reasonable global governance system through cooperation. Pan Gongsheng called for further cooperation in payment system connectivity, local currency usage, financial market opening-up, and digital currency.
Perry Warjiyo highlighted that in the first seven months of 2025, LCT transactions between Indonesia and China reached USD 6.23 billion, accounting for around 45% of Indonesia’s total volume in LCT transactions with all trading partners. This event aims to raise awareness and increase participation from the market, and embodies two banks’ shared vision of a financial ecosystem that is more connected, secure and inclusive. Moving forward, BI will continue working closely with the PBOC to advance financial innovation and integration.
Pan Gongsheng and Perry Warjiyo held a bilateral meeting on the same day, and exchanged views on financial cooperation. They agreed to establish a joint work program to institutionalize and deepen bilateral financial cooperation. Xuan Changneng, Deputy Governor of the PBOC, attended the events.
