BOC Hong Kong Jakarta Promotes Local Currency Transactions to Boost Central Java Industry
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- BOC Hong Kong’s Jakarta branch promoted rupiah–renminbi local currency transactions (LCT) in Semarang, targeting industrial players and business associations in Central Java.
- Bank Indonesia said demand for reliable local-currency services is rising as Indonesia–China trade and investment expand, and noted that MSMEs can also use LCT.
- Bank Indonesia expects cross-border QR payments between Indonesia and China to be widely available in Q1 2026, as bilateral trade reached US$ 154.58 billion last year.
Bank of China (Hong Kong) Limited (BOC Hong Kong) Jakarta branch is promoting the use of local currency transactions (LCT) among industrial players in Central Java, saying the Indonesia–China scheme could support the growth of industrial estates across the Semarang agglomeration.
At an LCT seminar held by BOC Hong Kong Jakarta in Semarang recently, around 150 participants attended, including representatives from business associations and industry players.
Speaking at the seminar, Head of Bank Indonesia’s Central Java Representative Office M. Noor Nugroho said demand for high-quality local-currency transaction services was becoming increasingly important as economic and trade cooperation between Indonesia and China continues to expand.
Indonesia and China have implemented LCT cooperation for several years, enabling trade and investment transactions to be settled without using a third currency, as payments can be conducted directly between the rupiah and China’s renminbi.
The arrangement, he said, creates opportunities for regional industrial growth, particularly in industrial hubs such as Semarang and surrounding areas, which are becoming more deeply integrated with international markets.
With its various benefits—from lower transaction costs to greater efficiency—LCT is expected to strengthen the competitiveness of Central Java’s leading products in the global market. The local-currency mechanism is also available to micro, small and medium enterprises (MSMEs).
As one of the banks appointed to facilitate local-currency transactions, BOC Jakarta reaffirmed its commitment to optimizing platform capabilities and integrating resources to build a comprehensive financial services system for Chinese companies expanding overseas, while also deepening Indonesia–China economic cooperation and financial connectivity.
“As a Chinese financial institution that has operated in Indonesia for a long time, we continuously strengthen coordination with regulators and increase financial support for industrial development and job creation,” said BOC Jakarta Branch Head and Chairman of the Chinese Chamber of Commerce in Indonesia, Sun Shangbin.
Sun added that cross-border transaction convenience for people and businesses in both countries would improve further as services expand to include cross-border QR-based payments.
After several months of trials, Bank Indonesia said the Indonesia–China cross-border QR payment service is scheduled to be rolled out widely in the first quarter of 2026.
The LCT partnership is becoming more relevant as trade ties between the two countries continue to grow.
Last year, Indonesia’s trade value with China rose by 13.2 percent year-on-year to US$ 154.58 billion (US$ 1 = Rp 16,777), based on the latest Statistics Indonesia (BPS) data released this week. Indonesia’s exports to China stood at US$ 67.04 billion and imports at US$ 87.54 billion, growing by 6.9 percent and 18.53 percent, respectively.
Indonesianpost.com | Antara
