Indonesia & Malaysia Break New Ground with Cross-Border QR Payment Launch
Bank Indonesia (BI) and Bank Negara Malaysia (BNM) officially launched the cross-border QR payment link between Indonesia and Malaysia on May 8, following a successful pilot phase announced on January 22, 2022. This initiative is in line with the G20's efforts to establish a roadmap for improving cross-border payments, and serves as a key outcome of Indonesia's chairmanship of ASEAN in 2023.
The inauguration of the cross-border QR payment link between Indonesia and Malaysia was the result of the joint efforts of BI and BNM, working together with the Indonesian Payment System Association, PayNet, and financial institutions that participated in the initiative.
This launch also means that more financial institutions, both banks, and non-banks, will participate. It also makes it easier for people in both countries to make instant retail payments in both countries by using QR Quick Response Code Indonesian Standard (QRIS) or DuitNow QR codes (the national QR code solution for Indonesia and Malaysia) when making purchases, both online and offline.
During the launch event, Bank Indonesia Governor Perry Warjiyo said that this initiative is a form of real and strong cooperation in regional payment connectivity to facilitate faster, affordable, transparent, and inclusive cross-border payments, especially for micro, small, and medium enterprises.
Furthermore, this initiative is an important outcome of Indonesia's chairmanship of ASEAN this year, as well as an important milestone of Indonesia's Payment System Blueprint 2025. This link will provide users with more payment options and play an important role in improving efficiency, promoting economic inclusion and digital finance in the region, and maintaining macroeconomic stability by facilitating the wider use of local currencies in bilateral transactions under the Local Currency Transaction Framework.
On the other hand, Bank Negara Malaysia Governor Nor Shamsiah Mohd Yunus said that this cooperation makes ASEAN more connected than ever before. With this cooperation, both countries will also benefit in making and receiving cross-border payments.
Furthermore, she also said that these payments can then boost economic activities, including tourism spending in both countries. In addition, this payments relationship will help expand markets for some businesses and facilitate more settlements in local currency, leading to better financial outcomes. As bilateral payments cooperation between ASEAN countries continues to grow, it will contribute to the development of ASEAN as a more dynamic growth center.
In addition to strengthening the relationship between the two countries, this cooperation is also a form of post-pandemic economic recovery. In addition, with the increasing momentum of international travel, this payment cooperation is expected to benefit the tourism sector in both countries.
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