RI-Chingkok Strengthens Bilateral Transactions With Local Currency

JAKARTA - Indonesia and China continue to strengthen their commitment to using local currency (LCT) in trade and bilateral investment.

This scheme provides tangible benefits for business actors and the public with more efficient transactions, lower conversion costs, and support for financial stability.

In the January 'July 2025 period, the value of Indonesia's LCT transactions 'Chingkok' has reached an equivalent of 6.23 billion US dollars, an increase from the equivalent of 2.17 billion US dollars in the same period the previous year. The achievement of Indonesia's LCT 'Chingkok' cooperation became an important milestone in commemorating 75 years of diplomatic relations between the two countries.

This surfaced at the meeting of Bank Indonesia Governor Perry Warjiyo and the Governor of People's Bank of China (PBoC) Pan Gongsheng in Beijing on Thursday, September 11.

Perry expressed his belief that the participation of business actors and deepening Indonesia's economic cooperation "Chingkok" will continue to expand.

Perry said this step reflects a joint commitment to strengthening bilateral collaboration and building a more connected, secure, and inclusive financial ecosystem.

"In the future, Bank Indonesia will continue to work with PBoC and stakeholders to encourage innovation and expand financial integration," he said in his statement Thursday, September 11.

Meanwhile, Pan said that as two major developing countries in Asia, China and Indonesia have a shared responsibility in facing the current global dynamics.

According to him, trade relations and investment between China and Indonesia have been built from the foundation of solid financial cooperation, so strengthening this cooperation is very important.

Meanwhile, the commitment to strengthening LCT with China is also in line with the achievements of LCT Indonesia and other partner countries.

In the January 'July 2025 period, the realization of LCT transactions between Indonesia and other countries also continued to show developments, namely Malaysia (USD 2.03 billion equivalent), Thailand (USD 644 million equivalent), Japan (USD 5.08 billion equivalent), South Korea (USD 85 million equivalent), and the United Arab Emirates (USD 72 million equivalent).

On the same occasion, Bank Indonesia and PBoC also conducted a limited trial (sandbox) on the payment of QRIS between Indonesian countries "Chingkok".

This initiative is a follow-up to the commitment of the two central banks to strengthen cross-border payment connectivity.

The trials not only mark technological advances, but also encourage broader inclusion, affordability, and access to financial services.

This activity involved the Indonesian Payment System Association (ASPI) with payment industry partners from China, namely UnionPay International.

Pelaksanaan inisiatif LCT dan QRIS antarnegara Indonesia–Tiongkok mencerminkan sinergi erat antara Bank Indonesia, PBoC, asosiasi sistem pembayaran, serta lembaga keuangan kedua negara.

Inisiatif ini tidak hanya memperkuat hubungan ekonomi bilateral, tetapi juga mendukung terbentuknya ekosistem keuangan digital yang tangguh, inklusif, dan berdaya saing di kawasan.

The implementation of the LCT and QRIS initiatives between Indonesian countries "Chingkok" reflects the close synergy between Bank Indonesia, PBoC, payment system associations, and financial institutions of the two countries.

This initiative not only strengthens bilateral economic relations, but also supports the formation of a digital financial ecosystem that is resilient, inclusive, and competitive in the region.