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March 22, 2023

Monetary Authority of Singapore (MAS) and Bank Indonesia (BI) advance cross-border initiatives

The two central banks are igniting their cross border initiatives.

On 29 August 2022, BI and MAS announced the commencement of work on a cross-border QR payment linkage between the two countries. Targeted to be launched in the second half of 2023, the link will allow users to make instant, secure, and efficient retail payments by scanning the Quick Response Code Indonesian Standard (QRIS) or NETS QR codes displayed by merchants. In addition, BI and MAS also signed a Memorandum of Understanding (MOU) to promote the use of local currencies in bilateral transactions such as trade and direct investments. The MOU is in line with ASEAN financial integration efforts to facilitate the wider use of local currencies in intra-ASEAN trade and investment settlement. This helps businesses reduce their exposure to exchange rate risks and the corresponding costs of conducting bilateral transactions.