Bank Indonesia (BI) together with the Bank of Thailand (BoT) on August 29 inaugurated the implementation of a cross-border QR Code-based payment linkage between the two countries.
BI Governor Perry Warjiyo said, through this initiative, the people of Indonesia and Thailand can use the Thai QR Codes payment application and Quick Response Code Indonesian Standard (QRIS) in making payment transactions with merchants.
The system also supports tourism and micro-, small and medium-sized enterprises (MSMEs), he said, noting that this is an effort to encourage the digitisation of cross-border payments.
In May 2022, leaders from the central banks of Indonesia, Thailand, Malaysia, Singapore and the Philippines reiterated their commitments to connecting the payment system.
Mr. Sugeng, Deputy Governor of BI, highlighted that, “This initiative is a milestone of the Indonesian Payment System Blueprint 2025, especially in retail payments. It links cross-border payments through the interconnection of national QR codes of our two countries. One interesting aspect of this project is the use of direct quotation of local currency exchange rates provided by the Appointed Cross Currency Dealer (ACCD) banks under the Local Currency Settlement (LCS) Framework to improve the efficiency of the transactions, thus lowering transaction costs. The significant expected outcome of this first cross-border payment project is not only to facilitate transactions in the tourism sector but also to assist SMEs in tourist areas. This project will also increase financial inclusion, inclusive digital economy, and e-commerce transactions. This pilot, which BI calls an “industrial sandbox", is on the path to further expansion of cross-border payments in the region."
Mr. Ronadol Numnonda, Deputy Governor of the BOT, asserted that, “The Bank of Thailand underscores the significance of this cross-border payment system connectivity, having continuously pursued similar initiatives in the region recently under the ASEAN Payment Connectivity initiative. We believe that this cross-border QR payment will result in a safer, more efficient, and cost-attractive alternative for retail payments by the general public. Also, this service will assist e-commerce businesses during these challenging times and lay the foundation for the anticipated resumption of tourism and business flows. More importantly, our cross-border payment linkage with ASEAN's largest country will be another key catalyst in transforming the way ASEAN citizens make payments abroad, thus contributing to regional economic prosperity and digitalization."
This project is made possible with the collaboration of various stakeholders from both countries under the joint stewardship of BI and the BOT. These include the Indonesian Payment System Association (ASPI), the Thai Bankers' Association, 13 QRIS providers, RAJA (Rintis, Artajasa, Jalin, and Alto) – the four switching operators from Indonesia, National ITMX (NITMX) – the payment system operator from Thailand, as well as ACCD banks, including Bank Central Asia (BCA), Bank Negara Indonesia (BNI), and Bank Rakyat Indonesia (BRI) from Indonesia, and Bangkok Bank (BBL), Bank of Ayudhya (Krungsri), and CIMB Thai Bank (CIMBT) from Thailand.