Bank Negara Malaysia (BNM) and Bank Indonesia (BI) have strengthened their collaboration on digitalisation and payment systems during a high-level meeting in Jakarta.
The two central banks also discussed macroeconomic, monetary, and financial developments, with a focus on modernising financial services through closer cooperation.
This ongoing partnership builds on the successful launch of the cross-border QR payment linkage between the two countries in May 2023.
The system allows users in Malaysia and Indonesia to make instant retail payments using their respective home country’s QR payment applications, linking DuitNow and QRIS systems.
The regulators are also discussing the possibility of enabling P2P transfers between Malaysia and Indonesia using mobile or national identification numbers.
At the meeting, BNM Governor Dato’ Seri Abdul Rasheed Ghaffour and BI Governor Perry Warjiyo signed the renewal of the Local Currency Bilateral Swap Agreement (LCBSA), valued at RM24 billion/IDR 82 trillion.
The agreement, which extends for five years, reinforces the countries’ efforts to promote the use of local currencies in trade and investment, complementing existing frameworks like the Local Currency Settlement Framework.
BNM Governor Dato’ Seri Abdul Rasheed Ghaffour said,
“Given the deepening trade and financial linkages between Malaysia and Indonesia, we are pleased to continue our cooperation with Bank Indonesia with the renewal of the LCBSA.
The LCBSA supplements the Local Currency Settlement Framework (LCSF) between our two countries, which remains a key enabler for trade and investment settlements in local currencies.”
BI Governor Perry Warjiyo said,
“Bank Indonesia believes that the enhancement of LCBSA with BNM represents the importance of international cooperation as part of Bank Indonesia policy mix that support key policies in the area of monetary, macroprudential, and payment system, while contribute to the development of local currency in bilateral transactions.”
Featured image: BNM Governor Dato’ Seri Abdul Rasheed Ghaffour and BI Governor Perry Warjiyo
