Pan Gongsheng, governor of the PBOC (right), shakes hand with Perry Warjiyo, governor of BI, in Beijing. Photo: PBOC website
China’s central bank, the People’s Bank of China (PBOC), and Bank Indonesia (BI) jointly launched China-Indonesia Local Currency Transaction (LCT) Framework and QR code connectivity on Thursday, according to the official website of the PBOC on Thursday. The event featured a main venue in Beijing and a branch venue in Jakarta.
Speaking at the event, Pan Gongsheng, governor of the PBOC, said that the LCT Framework and QR code connectivity are important outcomes in the two countries’ 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, according to the PBOC.
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, according to the PBOC.
Pan called for further cooperation in payment system connectivity, local currency usage, financial market opening-up, and digital currency.
In May 2025, 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, according to the PBOC.
Perry Warjiyo, governor of BI, noted that in the first seven months of 2025, LCT transactions between Indonesia and China reached US$ 6.23 billion, accounting for around 45 percent of Indonesia’s total volume in LCT transactions with all trading partners, according to the PBOC.
Thursday’s 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, according to Warjiyo.
The two bank governors held a bilateral meeting on the same day, and exchanged views on financial cooperation. They also agreed to set up a joint work program to institutionalize and deepen bilateral financial cooperation, said the Chinese central bank.
Global Times
