The central banks of China and Indonesia have launched a new local currency settlement (LCS) framework to expand the use of yuan and rupiah in bilateral trade and investment. The framework, based on a May 2025 MoU, extends LCS coverage to all balance-of-payments items.
A two-way cross-border QR code payment trial has also begun, enabling direct local currency transactions; it is expected to be fully operational later this year.
Both banks will create a joint working mechanism to strengthen cooperation and deepen financial integration.
