TEMPO.CO, Jakarta - Governor of Bank Indonesia Perry Warjiyo and Governor of the People's Bank of China Pan Gongsheng signed a memorandum of understanding (MoU) on Sunday, May 25, 2025, at Merdeka Palace to promote the use of local currencies in bilateral transactions. The signing was witnessed by Indonesian President Prabowo Subianto and Chinese Premier Li Qiang.
According to Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, the agreement builds upon a previous arrangement established between the two central banks on September 30, 2020.
"By expanding the scope of cooperation in bilateral local currency settlement covering current transactions, capital transactions, and financial transactions," said Denny in a written statement quoted on Monday, May 26, 2025.
Denny noted that specific transaction types will be detailed in forthcoming operational guidelines. The memorandum, he added, aims to facilitate the use of local currencies in trade and investment, while also enhancing broader monetary cooperation between the two countries.
In addition to the MoU on local currency usage, President Prabowo and Premier Li Qiang also witnessed the signing of three other cooperation agreements.
One MoU was inked between Indonesia’s National Economic Council and China’s National Development and Reform Commission to bolster collaboration on economic development policies. Another agreement was signed between Indonesia’s Coordinating Ministry for Economic Affairs and China’s Ministry of Trade, focusing on industrial sector and supply chain cooperation.
A third MoU, involving the same Indonesian ministry, China’s Ministry of Trade, and the Fujian Provincial Government, was signed to support the twin park cooperation initiative between the two countries.
During the Indonesia-China Business Reception 2025 at the Shangri-La Hotel in Jakarta on Saturday, May 24, President Prabowo highlighted the importance of Indonesia-China ties for regional peace and development.
"I view the relationship between Indonesia and China as a very strategic, very important, and very promising bilateral relationship that can determine the conditions for peace and stability in our region," said President Prabowo, as quoted from an official statement.
Hendrik Yaputra contributed to the writing of this article.
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