Indonesia & Singapore team to facilitate cross-border QR payments
By Gloria Mathias
This linkage enables 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.
This cross-border QR payment linkage is a milestone in the efforts by BI and MAS to promote greater integration of the digital economy and financial ecosystem, as well as to boost economic connectivity between Indonesia and Singapore.
BI and MAS have also signed a Letter of Intent (LOI) to establish a local currency settlement framework. When operationalised in 2024, the framework will facilitate the settlement of cross-border payments, including QR payments, trade, and investments between Indonesia and Singapore in their respective local currencies.
The LOI follows the signing of an MoU on a framework for cooperation to promote bilateral transactions in local currency (LCT Framework) by both central banks in August 2022 and is in line with ASEAN financial integration efforts to facilitate the wider use of local currencies in intra-ASEAN transactions.
Perry Warjiyo, Governor of Bank Indonesia said, “Cross-border QR payment linkage between Indonesia and Singapore will promote faster, cheaper, more transparent, and more inclusive cross-border payments, particularly for the benefits of micro, small, and medium enterprises. The linkage serves as a follow-up on the commitment among ASEAN members on Regional Payment Connectivity, and the Indonesian Payment Systems Blueprint 2025.”
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.”
This QRIS-NETS QR payment linkage has been made possible through strong industry collaboration with the Indonesian Payment System Association (ASPI), RAJA (Rintis, Artajasa, Jalin, and Alto), the Network for Electronic Transfers (Singapore) (NETS) and participating financial institutions.
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December 08, 2023