Bank Mandiri Becomes the First Bank in Indonesia to Be Directly Connected to CIPS, Strengthening the Connectivity of Indonesia-China Finance

JAKARTA - Bank Mandiri has recorded a new milestone as a pioneer bank in Indonesia that joined as a Direct Participant in the Cross-Border Interbank Payment System (CIPS), an international payment infrastructure based on Renminbi (RMB) that operates under the auspices of the People's Bank of China (PBoC).

The inauguration of this membership took place in the Launching Ceremony of Bank Mandiri as a Direct Participant of The Cross-Border Interbank Payment System (CIPS) in Shanghai, China, Thursday, June 11, and was attended by Governor of Bank Indonesia Perry Warjiyo, Governor of the People's Bank of China Pan Gongsheng, Chairman of CIPS Wang Hongbo, and Director of Operations Bank Mandiri Timothy Utama.

This membership strengthens Bank Mandiri's position as the only Indonesian banking institution that is directly connected to one of the main global payment infrastructures, while expanding the reach of cross-border transaction services to support the growing trade and investment flows in the Indonesia-China corridor.

Bank Mandiri's participation in CIPS is a follow-up to the strengthening of bilateral economic and transactional cooperation between Indonesia and China initiated by Bank Indonesia (BI) and the People's Bank of China (PBOC). Through this direct connection, Bank Mandiri can provide faster, transparent, secure, and reliable RMB-based transaction services for business actors, investors, and corporate customers in both countries.

Bank Mandiri Operations Director Timothy Utama, said that Bank Mandiri's status as a Direct Participant of CIPS is a strategic step to strengthen the capacity of international transaction services as well as a commitment to support the increasingly close economic relations between Indonesia and China.

"As a Direct Participant of CIPS, Bank Mandiri can provide more efficient and reliable RMB transaction services, as well as support the growth of trade and investment between Indonesia and China and strengthen the connectivity of the national financial industry with the global payment ecosystem," said Timothy.

With this status, Bank Mandiri now has direct access to the international RMB payment network so that it can provide more seamless transaction services compared to conventional payment mechanisms. This direct integration simplifies the transaction process, reduces interbank complexity, and increases the certainty of cross-border transaction settlement. Customers can also get a more optimal international transaction experience, especially for trade, investment, and treasury activities with business partners in China.

In addition to increasing the speed and reliability of services, Bank Mandiri also expands the flexibility of transactions in RMB to support the increasingly dynamic business needs of customers. This effort is supported by an extension of the time for international fund delivery services based on RMB.

"Today's milestone also strengthens Bank Mandiri's role as a trusted financial partner for business actors in the international trade sector, by providing innovative solutions to dynamically meet customer needs in an increasingly interconnected global economy," continued Timothy.

This capability also strengthens Bank Mandiri's support for the development of Local Currency Transactions (LCT) between Indonesia and China, including for the needs of trade and investment transactions in both countries.

With China's position as one of Indonesia's main trading partners, the need for a fast, secure, and efficient cross-border payment infrastructure is increasingly important in increasing the competitiveness of national business actors. Bank Mandiri is optimistic that this increasingly integrated connectivity will provide added value for business actors who are actively establishing business relations with China.

Going forward, Bank Mandiri will continue to expand collaboration with various global strategic partners, develop RMB-based transaction services, and strengthen its role as a leading provider of financial solutions for customer international transaction needs.

Through innovation and strengthening service capabilities, Bank Mandiri is committed to continue supporting national economic growth as well as the development of inclusive and sustainable regional cooperation.

"We believe that stronger financial connectivity will open up more opportunities for sustainable growth for the business world and the national economy, as well as strengthening Indonesia's integration with the global economic ecosystem," concluded Timothy.