Bank Indonesia (BI) and Bank Negara Malaysia (BNM) have announced the commercial launch of Indonesia – Malaysia cross-border QR payment linkage for instant retail payments. The launch follows the successful completion of the linkage pilot phase made public in January 2022 and sees an increase in the number of participating financial institutions (FIs), which include non-banks.

Cross-border QR payment linkage and what it entails Based on the information detailed in the press release, the linkage looks to enable an increased number of Indonesians and Malaysians alike to carry out instant retail payments in either region by scanning Quick Response Code Indonesian Standard (QRIS) or DuitNow QR codes (the national QR code solutions for Indonesia and Malaysia, respectively) at physical stores or online merchants leveraging services provided by participating FIs. Commenting on this, Bank Negara Malaysia Governor Tan Sri Nor Shamsiah Mohd Yunus said that as the ASEAN region is more connected, a multitude of Malaysia- and Indonesia-based users are to benefit from a secure and increasingly simple and efficient experience to make and receive cross-border payments. This is believed to bring forth potential to boost economic activities, including tourism spending in the two countries.

The spokesperson advised that the payments linkage is to help expand markets for several businesses and facilitate increased settlements in local currency, thus improving financial outcomes. Furthermore, the belief is that the QR payment linkage between the regions complements a growing network of bilateral payment linkages within ASEAN that are set to contribute towards an increasingly ‘vibrant ASEAN’ and the development of the region as a growth centre. Adding on this, the Governor of Bank Indonesia, Mr.

Perry Warjiyo advised that the connectivity highlights the strengthened cooperation on Regional Payment Connectivity to promote increasingly fast, cheap, transparent, and inclusive cross-border payments, particularly for the benefits of micro-, small- and medium-sized enterprises. Per their statement, the linkage is in alignment with the G20 initiative in establishing the Roadmap for Enhancing Cross Border Payments and serves as a deliverable of Indonesia’s chairmanship of the ASEAN in 2023, while representing a milestone of the Indonesian Payment System Blueprint 2025. What is more, it offers increased options for users in cross-border payment transactions and is key in bettering efficiency to promote digital economy and financial inclusion and maintain macroeconomic stability via the promotion of extensive use of local currency for bilateral transactions under the Local Currency Transaction Framework.

The announcement further highlights that the QR payment linkage is set to strengthen the economic ties between Indonesia and Malaysia, supporting an increasingly inclusive and strong post-pandemic economic recovery. Furthermore, as international travel gathers momentum, it is set to not only provide travellers with more convenience but also benefit both economies’ tourism and retail sectors. Per the press release, the launch follows close industry collaboration championed by BI and BNM, which cooperated with the Indonesian Payment System Association, PayNet, and participating FIs.

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