Core Points - The People's Bank of China and Bank Indonesia have launched a bilateral local currency settlement (LCT) framework and a cross-border QR code interoperability project, marking a significant step in financial cooperation between the two countries [1][2] - The LCT framework aims to expand the scope of local currency settlement to all items in the balance of payments, facilitating the use of local currencies in bilateral trade and investment [1][3] - The cross-border QR code interoperability project is set to begin trial operations and is expected to be fully operational by 2025, utilizing local currency settlement methods [1][2] Financial Cooperation - The establishment of the LCT framework and QR code interoperability is seen as a major achievement in China-Indonesia financial cooperation, driven by deepening political trust and growing economic ties [2] - In the first seven months of 2025, the local currency settlement under the LCT framework reached USD 6.23 billion, accounting for 45% of Indonesia's total local currency settlements with all trade partners [2] - Both central banks have agreed to establish a joint working mechanism to enhance the institutionalization of bilateral cooperation and promote deeper financial collaboration [2][3] Previous Agreements - The current LCT framework is an upgrade from a memorandum signed in 2020, expanding the scope of local currency settlement from current account and direct investment to include capital and financial accounts [3] - A bilateral currency swap agreement was renewed with a scale of 400 billion RMB/878 trillion Indonesian Rupiah, effective for five years, which can be extended upon mutual agreement [3][4]

Core Points - The People's Bank of China and Bank Indonesia have jointly launched a bilateral local currency settlement (LCT) framework and a cross-border QR code interoperability cooperation project [1][4][6] - The LCT framework aims to expand the scope of local currency settlement to all items in the balance of payments, facilitating the use of local currencies in bilateral trade and investment [6][12] - The cross-border QR code interoperability project is set to begin trial operations and is expected to be fully operational by 2025, marking significant progress in payment cooperation between the two countries [6][10] Group 1: Bilateral Cooperation - The LCT framework was officially announced by the central bank governors of both countries, with a memorandum of cooperation signed in May 2025 [6][10] - The framework aims to enhance financial cooperation, reflecting the deepening political trust and the growing economic ties between China and Indonesia [8][12] - A joint working mechanism will be established to further improve the level of bilateral cooperation [10] Group 2: Financial Data and Impact - From January to July 2025, the local currency settlement scale under the LCT framework reached $6.23 billion, accounting for 45% of Indonesia's total local currency settlements with all trade partners [10] - The local currency settlement cooperation has been expanded from current accounts and direct investments to include capital and financial accounts [12] - A bilateral currency swap agreement was renewed with a scale of 400 billion RMB / 878 trillion Indonesian Rupiah, effective for five years [12]

Core Viewpoint - The People's Bank of China and Bank Indonesia have jointly launched a bilateral local currency settlement (LCT) framework and a cross-border QR code interoperability project, marking a significant advancement in financial cooperation between the two countries [1][3]. Group 1: Bilateral Local Currency Settlement Framework - The LCT framework was officially announced during an event held simultaneously in Beijing and Jakarta, attended by key officials from both countries [3]. - The framework expands the scope of local currency settlement to cover all items in the balance of payments, facilitating the use of local currencies in bilateral trade and investment [3]. - As of January to July 2025, the local currency settlement volume under the LCT framework reached $6.23 billion, accounting for 45% of Indonesia's total local currency settlements with all trade partners [7]. Group 2: Cross-Border QR Code Interoperability - The cross-border QR code interoperability project has been initiated and is expected to be fully operational within 2025, utilizing local currency settlement methods [3]. - This project represents a significant step forward in payment cooperation between China and Indonesia [3]. Group 3: Financial Cooperation and Future Prospects - The establishment of the LCT framework and QR code interoperability is seen as a result of deepening political trust and the growing economic ties between China and Indonesia [5]. - Both countries are encouraged to continue enhancing cooperation in areas such as payment system connectivity, local currency usage, financial market openness, and digital currencies [5]. - A joint working mechanism between the two central banks will be established to further institutionalize bilateral cooperation in finance [7].

Core Viewpoint - The People's Bank of China and Bank Indonesia have jointly launched a bilateral local currency settlement (LCT) framework and a cross-border QR code interoperability project, marking a significant advancement in financial cooperation between the two countries [1][4]. Group 1: Bilateral Cooperation Framework - The LCT framework was officially announced by the central bank governors of both countries, expanding the scope of local currency settlement to cover all items in the balance of payments, facilitating the use of local currencies in bilateral trade and investment [4][6]. - The LCT framework aims to enhance financial system connectivity and security, reflecting the deepening political trust and economic ties between China and Indonesia [6][8]. Group 2: Financial Statistics and Future Plans - From January to July 2025, the local currency settlement scale under the LCT framework reached $6.23 billion, accounting for 45% of Indonesia's total local currency settlements with all trade partners [8]. - A joint working mechanism between the two central banks will be established to further institutionalize bilateral cooperation and promote financial collaboration [8][10]. Group 3: Previous Agreements and Developments - The recent memorandum of understanding expands the previous agreement signed in 2020, broadening local currency settlement cooperation from current account and direct investment to include capital and financial accounts [10]. - A bilateral currency swap agreement was renewed with a scale of 400 billion RMB / 878 trillion Indonesian Rupiah, effective for five years, aimed at enhancing monetary cooperation and facilitating bilateral trade [10].

Group 1 - The People's Bank of China and Bank Indonesia have jointly launched a bilateral local currency settlement (LCT) framework and a cross-border QR code interoperability cooperation project, marking a significant advancement in payment cooperation between the two countries [1][2][3] - The LCT framework was officially activated, expanding the scope of local currency settlement to all items in the balance of payments, facilitating the use of local currencies in bilateral trade and investment [2][3] - The cross-border QR code interoperability project has commenced a two-way pilot operation, with full production expected by 2025, utilizing local currency settlement methods [1][2] Group 2 - In the first seven months of 2025, the local currency settlement scale under the LCT framework between Indonesia and China reached $6.23 billion, accounting for 45% of Indonesia's total local currency settlement with all trade partners [3] - The establishment of the bilateral local currency settlement framework and cross-border payment QR code interoperability is seen as a key outcome of financial cooperation between China and Indonesia, driven by deepening political trust and growing economic ties [3] - Both central banks have agreed to establish a joint working mechanism to enhance the institutionalization of bilateral cooperation and promote deeper financial collaboration [3]

Core Points - The People's Bank of China and Bank Indonesia have launched a bilateral local currency settlement (LCT) framework and a cross-border QR code interoperability project, marking a significant step in financial cooperation between the two countries [1][2] - The LCT framework expands the scope of local currency settlement to cover all items in the balance of payments, facilitating the use of local currencies in bilateral trade and investment [1] - The LCT framework was upgraded from a previous memorandum signed in May 2025, which aimed to enhance local currency settlement for current account transactions and direct investments [1] - The cross-border QR code interoperability project is set to begin pilot operations and is expected to be fully operational by 2025, representing a key advancement in payment cooperation [1] - The Chinese central bank governor emphasized the importance of deepening cooperation in payment system connectivity, local currency usage, financial market openness, and digital currencies [1] - In the first seven months of 2025, the local currency settlement volume between Indonesia and China reached USD 6.23 billion, accounting for 45% of Indonesia's total local currency settlements with all trade partners [2] - The initiative aims to enhance market understanding and participation in the LCT framework, reflecting a shared vision for improved financial system connectivity and security [2]