China Indonesia Photo:VCG
The central banks of China and Indonesia on Sunday signed a memorandum of understanding (MOU) on establishing a framework for cooperation on local currency settlement in bilateral transactions, according to a statement posted on the official website of the People’s Bank of China (PBC), the central bank, on Sunday.
The MOU was signed by PBC Governor Pan Gongsheng and Bank Indonesia Governor Perry Warjiyo.
This MOU builds upon and upgrades the previous agreement signed on September 30, 2020, which focused on local currency settlement for current account transactions and direct investment. The new agreement expands the scope of cooperation to cover all transactions under the capital and financial accounts, within the limits permitted by the laws and regulations of both countries, said the PBC statement.
It also aims to enhance payment connectivity and further promote the use of local currencies in bilateral trade and investment, while deepening cooperation between the two countries’ monetary and financial markets, the statement said.
Bilateral trade is expanding in scale and improving in quality, two-way investment is growing rapidly and major projects are yielding remarkable results.
China is Indonesia’s largest trading partner, with bilateral trade showing a robust development trend. In 2024, bilateral trade reached $147.8 billion, a year-on-year increase of 6.1 percent, data from China’s General Administration of Customs showed. China’s exports to Indonesia totaled $76.7 billion, up 17.6 percent year-on-year.
Speaking with the Global Times in a written interview on Sunday, Indonesian Ambassador to China Djauhari Oratmangun emphasized the importance of a China-Indonesia comprehensive strategic partnership that “needs to bring peace, prosperity and stability to the region and to the world.”
Speaking of the potential areas for further cooperation, Oratmangun said that “of course one important area is to continue to strengthen economic, trade and investment cooperation,” gaining the country more investment from China not only in Indonesia’s downstream natural resources, but also in the fields of education, health, tourism, science and technology and beyond.
“We also can strengthen our trade and supply chain cooperation, as production partners for the global market,” the ambassador said.
