Bank Indonesia launches renminbi clearing bank to support local-currency trade

Bank Indonesia launched a renminbi clearing bank in Jakarta on 12 November 2026, aiming to expand domestic access to renminbi liquidity and make trade and investment transactions between Indonesia and China more efficient.

The People's Bank of China (PBoC) designated Bank of China (Hong Kong) Limited Jakarta Branch for the role following a memorandum of understanding signed with Bank Indonesia on 11 June 2026. Its functions include clearing and settlement, support for renminbi liquidity, and placement and financing instruments.

At the launch, the branch signed a commitment with 12 Appointed Cross Currency Dealer banks to support clearing services and Indonesia-China Local Currency Transaction (LCT) arrangements.

Bank Indonesia Governor Destry Damayanti said developing the rupiah-renminbi money and foreign-exchange market ecosystem was intended to help stabilise the rupiah and strengthen Indonesia's external resilience. The central bank's approach covers monetary operations, market development and international cooperation.

Indonesia-China LCT volume totalled the equivalent of US$43.89 billion in January-September 2026, compared with US$13.19 billion for all of 2025. Transactions with China accounted for 83.49 per cent of Indonesia's total LCT volume, with an average of 5,951 users each month.

Coordinating Minister for Economic Affairs Airlangga Hartarto said he hoped wider use of LCT would encourage Indonesian exports to China, with Indonesia currently running a bilateral trade deficit. PBoC Deputy Governor Tao Ling said using local currencies could lower transaction costs and exchange-rate risks.

Bank Indonesia said its next steps would include improving products and pricing mechanisms, widening market participation and strengthening links between financial infrastructure. Indonesia's LCT cooperation began in 2018 and now covers seven partner countries.