Indonesia, Singapore commence work on cross-border QR payment connectivity
Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) today announced the commencement of work on a cross-border QR payment linkage between Indonesia and Singapore as part of the ASEAN-wide payments connectivity effort. This linkage, which is targeted to be launched in the second half of 2023, will allow users to make instant, secure, and efficient retail payments by scanning the QRIS (Quick Response Code Indonesian Standard) or NETS QR codes displayed by merchants.
This payment connectivity between Indonesia and Singapore will empower individuals and businesses, particularly micro, small and medium enterprises (MSMEs), to conduct their cross-border trade, e-commerce, and financial activities more efficiently. It will also support tourism growth as international travel resumes. There are sizeable traveller flows between the two countries – 1.9 million arrivals in Indonesia from Singapore and 3.1 million arrivals in Singapore from Indonesia .
This QR code connectivity is made possible with the collaboration of industry representatives from both countries under the joint stewardship of BI and MAS. This includes the Indonesian Payment System Association (ASPI), RAJA (Rintis, Artajasa, Jalin, and Alto), and NETS.
BI and MAS also signed a Memorandum of Understanding (MOU) today to promote the use of local currencies in bilateral transactions such as trade and direct investments. This is in line with ASEAN financial integration efforts to facilitate the wider use of local currencies in intra-ASEAN trade and investment settlement. This can help businesses reduce their exposure to exchange rate risks and costs of conducting bilateral transactions.