Indonesia, China Ink Currency Deal to Boost Rupiah and Trade

Indonesia's Vice Speaker of Parliament, Sufmi Dasco Ahmad, lauded a recent agreement between Bank Indonesia (BI) and the People's Bank of China (PBOC) aimed at bolstering the rupiah's value. Dasco highlighted the Bilateral Currency Swap Arrangement (BCSA), signed on June 11, 2026, in Shanghai, as a concrete step toward strengthening national economic resilience. "The agreement allows transactions between Indonesia, mainland China, and Hong Kong to be conducted using rupiah or renminbi without relying on the US dollar," Dasco stated on Sunday, June 14, 2026, in Jakarta.

Beyond currency exchange, the memorandum of understanding (MoU) also establishes cross-border QRIS (Quick Response Code Indonesian Standard) payments between Indonesia and China. This initiative connects 191 service providers in China with 24 in Indonesia, facilitating seamless transactions. Dasco emphasized that this move is a serious effort to decrease the need for US dollars in trade transactions, including through the use of cross-border QRIS.

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The agreement allows transactions between Indonesia, mainland China, and Hong Kong to be conducted using rupiah or renminbi without relying on the US dollar.

This expansion of the local currency transaction (LCT) framework to include Hong Kong signifies a strategic effort to reduce dependency on the US dollar for Indonesia's export and import activities with China. BI's proactive measures, including the promotion of cross-border QRIS, are intended to reinforce the rupiah's position in the regional economy.

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This is a very serious effort to reduce the need for US dollars in trade transactions, including through the use of cross-border QRIS between Indonesia and China. This is done by BI to strengthen the rupiah.