Today (8/5), Bank Indonesia (BI) and Bank Negara Malaysia (BNM) have officially launched the implementation of payment interconnectivity between Indonesia and Malaysia using QR Code. This marks a significant step forward from the successful pilot phase that has been underway since January 27, 2022.
The payment interconnectivity using QR code involves the participation of a number of financial institutions, including those beyond banks, which have continued to grow.
As a result, more residents of Indonesia and Malaysia will be able to make retail payments in both countries by scanning the Indonesian Standard Quick Response Code (QRIS) or the DuitNow QR Code at physical or online stores using services from payment providers participating in this scheme.
Governor of Bank Indonesia, Perry Warjiyo, has hailed the cross-border QR payment connectivity between Indonesia and Malaysia as a tangible proof of strengthened cooperation within the Regional Payment Connectivity (RPC) framework to promote faster, cheaper, more transparent, and inclusive cross-border payments, especially for micro, small, and medium-sized enterprises.
“This interconnectivity is also in line with the G20 initiative to develop a roadmap for strengthening cross-border payments, as well as a significant achievement of Indonesia’s Chairmanship in ASEAN in 2023, and a milestone in the implementation of the Indonesian Payment System Blueprint (BSPI) 2025,” Perry said on Monday, May 8, 2023.
He further noted that this collaboration will provide more choices for users of cross-border payment transaction services and become the key to improving efficiency, promoting economic and digital financial inclusion in the region, as well as supporting macroeconomic stability by encouraging wider use of local currencies for bilateral transactions within the Local Currency Settlement Framework.
Meanwhile, Governor of Bank Negara Malaysia, Nor Shamsiah Mohd Yunus, believes that ASEAN is now more connected than ever before. Thus, she is confident that more users from Malaysia and Indonesia will benefit from cross-border payments that are more secure, easy, and efficient.
“This has the potential to drive economic activity, including the tourism sector in both countries. This payment interconnectivity will support market expansion for some businesses and facilitate increased settlement of payments using local currencies, resulting in positive financial impact,” Nor said.
“The QR payment interconnectivity between Indonesia and Malaysia complements the growing bilateral payment interconnectivity in ASEAN, which will contribute to a more dynamic ASEAN and further development of the region as a growth center,” she added.
Both governors see this collaboration as a way to strengthen the close economic ties between Indonesia and Malaysia, which will support a more inclusive and stronger post-pandemic economic recovery.
With international tourism gaining momentum, payment interconnectivity is expected to not only provide greater convenience for tourists but also benefit the tourism and retail sectors of both countries.
In summary, the implementation of payment interconnectivity using QR code between Indonesia and Malaysia is a significant achievement that will bring more choices and benefits for users of cross-border payment transaction services, promote economic and digital financial inclusion, support macroeconomic stability, and strengthen the economic ties between the two countries.
