Indonesia: Agreement on cross-border QR payment cooperation with Japan

In brief

In the spirit of Bank Indonesia’s Payment System 2025 Visions that were introduced in May 2019, and in conjunction with the G20 Roadmap for Enhancing Cross-Border Payments, Bank Indonesia has agreed on cooperating with the Japanese Ministry of Economy, Trade and Industry to enable consumers and merchants in both countries to make and accept instant cross-border QR payments. The memorandum of understanding for this cooperation was signed on 9 December 2022 in Tokyo.

For more details on QRIS (Quick Response Code Indonesian Standard), please refer to our previous Client Alert.

The memorandum of understanding provides a set of policies for policy dialogues, technical cooperation and the formation of working groups to effect the implementation of the cooperation. QRIS and JPQR (Japan Unified QR Code) will be used for this cooperation. The collaboration will allow users from Indonesia to use their mobile payment applications to scan JPQRs to make payments for goods and services to merchants in Japan. Likewise, users from Japan can use their mobile payment applications to scan QRIS to pay merchants in Indonesia for goods and services.

Bank Indonesia already has similar arrangements with other countries, such as Singapore, Malaysia and Thailand. Please refer to our previous Client Alert for the cooperation with Thailand. Cooperation arrangements with other countries are in the pipeline.

As the pandemic proves that digital transformation is inescapable, this cooperation of cross-border QR payment linkage will certainly enable instant, secure, and efficient cross-border payments between Indonesia and Japan. This would bring the ubiquity of QR-based payments to a new height. Yet again, Indonesia is on the move in making its payment system industry more agile in responding to globalization.

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