BI: Cooperation with Singapore will be released in the second half of 2023

Indonesia has started implementing cross-border payment system cooperation with Thailand in 2022 and Malaysia recently…..

Jakarta (Armfalcon.com) – Deputy Governor of Bank Indonesia (BI) Filianingsih Hendarta said that the payment system collaboration with Singapore will be launched in the second half of 2023.

“Indonesia has started implementing cross-border payment system cooperation with Thailand in 2022 and Malaysia recently. Meanwhile, the collaboration with Singapore is targeted for release at the end of 2023,” Filianingsih said in Jakarta, Tuesday.

Apart from these three countries, Indonesia has also collaborated with the Philippines in terms of financial innovation and payment systems since 2019.

Also read: BI continues to expand LCT cooperation to support monetary stability

Indonesia’s cooperation with a number of ASEAN countries is realized in the form of equalizing Quick Response (QR) codes, fast payments for retail, and agreements to use local money or Local Currency Settlements (LCS).

LCS is one of the agreements of countries that are members of ASEAN+3 to strengthen financial cooperation in the region. ASEAN+3 countries include 10 Southeast Asian countries along with China, Japan and Korea.

LCS aims to reduce dependence on the US dollar so as to strengthen the currency stability of each member country.

Currently, Indonesia has established LCS cooperation with five countries, namely Malaysia, Thailand, Japan, China and South Korea.

Also read: BI says there is no plan to raise the benchmark interest rate for 2023

On a separate occasion, BI Governor Perry Warjiyo said he would continue to expand the scope of the LCS.

Perry explained, efforts to use local currency aim to streamline trade transaction costs and reduce exchange rate risk because the use of local currency shortens the transaction process by eliminating the process of converting local currency to dollars and from dollars to local currency.

According to Perry, efforts to reduce the use of the United States (US) dollar or de-dollarization through the use of local currency have been seen in the declining use of the US dollar at the global level.

He referred to data from the International Monetary Fund (IMF) which showed the use of the US dollar had decreased to a level of around 50 percent from previously reaching 70 percent.

source: www.antaranews.com

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