Holiday Ayo - Governor of Bank Indonesia Perry Warjiyo said that Indonesia's payment system with Thailand will be fully connected starting Monday, August 29, 2022. This connected system is the QRIS service, open API (application payment interface), and Fast Payment which is adjusted to the local currency of each country or Local Currency Settlement (LCS).

With this, Perry said, all transactions carried out in the two countries can each use the digital payment system that already exists in the country concerned. Because it is no longer necessary to exchange money.

Perry explained that the interconnection of the payment systems of the two countries is a follow-up to the commitment of 5 Asean countries to realize cross-border payments cooperation. Those countries are Indonesia, Thailand, Malaysia, Singapore, and the Philippines. This payment system interconnection cooperation agreement will be officially signed at the G20 leaders meeting in November 2022.

"In May 2022, we gathered 5 central bank governors, namely Indonesia, Thailand, Malaysia, Singapore and the Philippines, who have committed to connecting the payment system," said Perry.

In addition to Thailand, which has very advanced payment system interconnection, Perry said, Malaysia is now entering the trial phase which has been carried out since January 2022.

Previously, Head of the BI Payment System Policy Department Filianingsih Hendarta said these five ASEAN countries already have digital transaction infrastructure, such as QR payments and Fast Payments. Therefore, it remains only to realize cross border payments.

Cross Border Payments are financial transactions that allow the payer and recipient to be in different countries. Head of the BI Payment System Policy Department, Filianingsih Hendarta said if this was connected, it would provide greater benefits for the community.

For example, transfer fees become cheaper and tourists are also easier and no longer need to exchange physical money into local currency or US dollars.