Indonesia & Singapore Pursue QR Payment Linkage & Bilateral Local Currencies Transactions

SINGAPORE, Aug 29 (Bernama) -- Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) have started working towards a cross-border QR payment linkage between the republics as part of the ASEAN-wide payments connectivity. In a joint statement issued here Monday, the central banks said this linkage -- target launch in the second half of 2023 -- allow users to make instant, secure, and efficient retail payments by scanning the QRIS or NETS QR codes displayed by merchants. QRIS is Indonesia's national standard QR code payment while NETS QR is the QR code solution operated by Singapore's electronic payment network NETS. The central banks said this payment connectivity will empower individuals and businesses, particularly micro, small and medium enterprises, to conduct their cross-border trade, e-commerce, and financial activities more efficiently. “It will also support tourism growth as international travel resumes,” they said. Citing 2019 data by the Central Bureau of Statistics Indonesia and Statistics Singapore, 2022, the central banks said 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. BI and MAS also signed a Memorandum of Understanding on Monday 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,” the statement said. -- BERNAMA