Indonesian People Now Can Pay by QRIS in Singapore

Singapore – Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) on Friday formalized the implementation of QR payment interconnection between Indonesia and Singapore. Therefore, QRIS can be used by people when shopping in Singapore. 

BI Governor Perry Warjiyo said the implementation allows users or customers of participating financial institutions to make retail payments between countries seamlessly using their payment applications.  

"The interconnection of cross-border QR payments between Indonesia and Singapore will encourage faster, cheaper, more transparent, and inclusive cross-border payments, especially for MSMEs," Warjiyo said in a statement on Friday. 

"This initiative is a follow-up to the commitment of ASEAN member countries in the Regional Payment Connectivity (RPC) cooperation and the implementation of the Indonesian Payment System Blueprint 2025, in realizing more convenient and efficient payment methods for the public," he continued. 

He also mentioned: "The interconnection of QR payments between these countries is an important achievement of BI and MAS' efforts in encouraging the integration of the digital economic and financial ecosystem, as well as enhancing economic relations between Indonesia and Singapore,"

According to Warjiyo, with increased ease of payment, this interconnection will be able to expand market access for businesses in both countries, especially micro and small businesses, through an increase in the number of new consumers. 

"This initiative will also benefit travelers from both countries as post-pandemic tourism returns,"

BI and MAS on this occasion also signed a Letter of Intent (LOI) related to the local currency settlement framework.  

Once implemented in 2024, the framework will facilitate the settlement of cross-border payment transactions, including QR payments, trade, and investment between Indonesia and Singapore using each country's local currency.  

"We also announced another strategic initiative to encourage wider use of local currencies in bilateral transactions through the Local Currency Transaction (LCT) framework," Perry said. 

"This is expected to be implemented by 2024. Through the implementation of this LCT framework, QR payment interconnection initiatives between countries will use direct quotations of local currency exchange rates provided by banks designated as Appointed Cross Currency Dealers (ACCD)," he said.  

Furthermore, this will support businesses and other users to minimize exposure to exchange rate risk and improve efficiency.

The LOI is a follow-up to the Memorandum of Understanding (MoU) signed by the two central banks on cooperation to encourage bilateral transactions in local currency (LCT framework) in August 20224.  

Meanwhile, MAS Managing Director Ravi Menon said the QRIS-QR NETS payment interconnection will encourage cross-border e-commerce activities and traveler spending between Singapore and Indonesia by individuals and small businesses. 

"Going forward, the local currency settlement framework by BI and MAS will complement the QR payment interconnection by facilitating the use of Rupiah and Singapore Dollar currencies for the settlement of payment transactions between countries," Menon explained.