Indonesia & South Korea to strengthen cross-border payment connectivity

By Gloria Mathias

Bank Indonesia (BI) and Bank of Korea (BoK) have marked a milestone by signing a memorandum of understanding (MoU) to propel cross-border payments in both countries.

The MOU, reflecting the implementation of the 2022 bilateral cooperation agreement on central banking, was signed by Perry Warjiyo, the governor of BI, and RHEE, Chang Yong, the governor of the BoK.

The MOU aims to accelerate closer cooperation on the interoperability of cross-border payments. BI and the BoK also seek to establish a framework to facilitate cross-border payment connectivity between the two countries. The MOU serves as a basis for the two countries to implement cross-border payments with industry players from each country.

The implementation of the MOU will support cross-border transactions between the two countries, promote the digital economy and finance in Indonesia and South Korea and significantly benefit the tourism sector, especially considering the high number of tourists travelling between the two countries. This cooperation will enhance the economies of both countries, particularly in the tourism sector.

The MOU, a testament to the ongoing efforts of BI and the BoK, is expected to create cheaper, faster, more inclusive, and more transparent cross-border payments between Indonesia and South Korea.  More importantly, it is set to play a pivotal role in promoting the digital economy and finance in both countries, marking a significant step towards a more interconnected and efficient financial landscape.