JAKARTA - Bank Indonesia (BI) together with the Monetary Authority of Singapore (MAS) have reached an agreement regarding the start of the initiation of cross-border QR (cross-border QR payment linkage) payments.
BI Governor Perry Warjiyo revealed that this step is a form of effort to encourage payment connectivity in the ASEAN region.
"The cooperation is targeted to be launched in the second half of 2023 and is expected to facilitate users in making retail payments instantly, safely and efficiently by scanning the QRIS (Quick Response Code Indonesian Standard) code or NETS QR code displayed by merchants," he said in a press statement quoted on Tuesday, August 30.
According to Perry, this important step has the potential to encourage individuals and businesses, especially micro, small and medium enterprises (MSMEs) to trade across countries, e-commerce, and other financial transactions efficiently.
In addition, it is believed that it will increase the growth of the tourism sector, along with the active flow of international travel. It should be noted that the flow of visits by the two countries was recorded at 1.9 million visitors from Singapore to Indonesia and 3.1 million visitors from Indonesia to Singapore.
Perry added, collaboration also targets the use of local currencies in bilateral transactions between the two countries, such as trade transactions and direct investment.
"This is in line with joint efforts in the ASEAN region in order to realize financial integration in the region through initiatives that can facilitate the wider use of local currencies in the process of completing trade transactions and intra-ASEAN investments. Business actors can also take advantage of this initiative to reduce exposure to exchange rate risks and costs in conducting bilateral transactions between countries," he said.
Furthermore, the BI boss also explained that Indonesia's attitude was in line with the digitalization agenda promoted in the G20 Presidency this year.
For Indonesia, this initiative is a milestone for the 2025 Indonesian Payment System which will be integrated with the framework of cooperation in encouraging the use of local currencies. In this way, it can also strengthen macroeconomic stability through the wider use of local currencies. Bank Indonesia believes that this initiative marks an important milestone in strengthening bilateral financial cooperation between Singapore and Indonesia," he said.
On the same occasion, MAS Managing Director Ravi Menon said that payment connectivity for QR QRIS-NETS code is an important achievement in achieving the goal of building payment integration in the ASEAN region by 2025.
"We believe this collaboration can overcome potential obstacles arising in cross-border payment activities at the global level and support better economic recovery and growth," Ravi said.
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