JAKARTA (Xinhua): The Renminbi (RMB) clearing bank in Indonesia officially began operations on Thursday, with Bank of China serving as the designated RMB clearing bank.
About 100 representatives from government departments, enterprises, and financial institutions of both China and Indonesia attended the opening ceremony held at Bank Indonesia on the same day.
In her remarks, Indonesia's central bank governor Destry Damayanti said that with the launch of the RMB clearing bank and the improvement of the local currency transaction mechanism, businesses can now settle trade with China directly in RMB. This will help reduce reliance on third-party currencies, safeguard exchange rate stability, and strengthen the regional economy's resilience against external shocks.
Currently, 12 local and foreign banks, including Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Bank Mandiri, and Bank Negara Indonesia, have become participating banks of the RMB clearing bank as appointed cross-currency dealers, with all relevant trading infrastructure fully in place.
Coordinating Minister for Economic Affairs Airlangga Hartarto noted that China is one of Indonesia's largest sources of non-oil and gas imports, and expanding the use of non-U.S. dollar currencies for settlement will significantly ease external pressures facing Indonesia.
Bank of China President Zhang Hui said that the RMB clearing bank in Indonesia represents a significant new fulcrum in the bank's global RMB service network.
Bank of China will actively serve as a financial bridge and link by building four key bridges of cross-border payment, financing, green finance, and financial innovation to enhance cross-border clearing efficiency and enrich its RMB financial product portfolio, said Zhang.
Aligning with the "Golden Indonesia 2045" vision, the bank will also step up financial support in sectors such as downstream mineral processing, energy infrastructure, advanced manufacturing, the digital economy, and green transition, thereby facilitating the high-quality development of Indonesia's real economy, said Zhang.
From the launch of the bilateral local currency settlement mechanism in 2021, the signing of the bilateral local currency transaction framework and renewal of the bilateral currency swap agreement in 2025, to the realization of cross-border QR code payment interconnectivity, Indonesia's successful issuance of Panda bonds this year, and now the official launch of the RMB clearing bank, financial cooperation between the two nations has continued to expand in both breadth and depth, providing strong support for upgrading bilateral economic and trade cooperation, said Zhou Kan, charge d'affaires of the Chinese Embassy in Indonesia.
China has remained Indonesia's largest trading partner for 13 consecutive years and one of its top three sources of foreign investment for 10 consecutive years, Zhou added. -- Xinhua
