Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have inaugurated a cross-border QR payment linkage connecting both countries.
The linkage was introduced at the Singapore Fintech Festival 2023 by BI Governor Perry Warjiyo and MAS Managing Director Ravi Menon.
This linkage will enable customers of participating financial institutions to make seamless cross-border retail payments using their existing mobile banking applications to scan QRIS (Quick Response Code Indonesian Standard) or NETS QR codes displayed by merchants in Indonesia and Singapore, respectively.
Participating financial institutions from Singapore are OCBC and UOB, with DBS joining at a later stage. Participating financial institutions from Indonesia are PT Bank Central Asia Tbk, PT Bank CIMB Niaga Tbk, PT Bank Pembangunan Daerah Bali, PT Bank Permata Tbk, PT Bank Syariah Indonesia Tbk, PT Bank Mega Tbk, PT Bank Sinarmas Tbk, PT Bank Rakyat Indonesia Tbk, PT Espay Debit Indonesia Koe, PT Netzme Kreasi Indonesia.
The successful implementation of this QRIS-NETS QR payment linkage is the result of robust industry collaboration, involving key partners such as the Indonesian Payment System Association (ASPI), RAJA, Network for Electronic Transfers (Singapore) Pte. Ltd (NETS), and several financial institutions from both countries.
The launch marks a substantial step in the collaborative efforts of BI and MAS to unify the digital economy and financial ecosystem of the two nations. It is particularly beneficial for micro and small businesses, offering them access to a broader customer base. The system is also timely for the increasing number of travelers between the countries, with statistics showing significant travel rebound post-pandemic in the first half of 2023.
Further strengthening this financial cooperation, BI and MAS have signed a Letter of Intent (LOI) to set up a local currency settlement framework.
Expected to be operational in 2024, this framework will facilitate smoother settlement of cross-border payments, including QR payments, trade, and investments, in local currencies. This initiative, aligned with the ASEAN financial integration efforts, aims to minimise exchange rate risks and costs for businesses.
Perry Warjiyo, Governor of Bank Indonesia said,
“In our ongoing commitment, we are also excited to announce our strategic initiative to promote a wider use of local currencies in bilateral transactions through the LCT framework, which is expected to be implemented in 2024.
After LCT Framework implementation, the cross-border QR payment linkage initiative will use direct quotations of local currency exchange rates provided by the Appointed Cross Currency Dealer (ACCD) banks.”
Ravi Menon, Managing Director of MAS, said,
“The QRIS-NETS QR payment linkage will promote cross-border e-commerce activities and tourism spending across Singapore and Indonesia, by individuals and small businesses.
The upcoming local currency settlement framework by BI and MAS will complement this payment linkage by facilitating the use of Indonesia Rupiah and Singapore Dollar for the settlement of cross-border payments.”
