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

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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.

Highlights

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.

Closing

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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Erwandi Hendarta is a senior partner and the Head of Finance & Projects Practice Group in Hadiputranto, Hadinoto & Partners. Erwandi has extensive experience working in the business and financial sectors. Erwandi has had multiple careers, having worked as a central banker at Bank Indonesia (the Central Bank of Indonesia) handling Government’s projects with multilateral agencies (IBRD/the World Bank, OECF, ADB) and as an investment banker doing corporate finance with Schroders Indonesia (an investment banking arm of Schroders Plc., London) before becoming a lawyer with HHP.
In addition to his Indonesian legal degree, Erwandi has an LL.M. from Cornell University, USA, and an MBA from Boston University, USA. He was a recipient of prestigious graduate scholarships from the Fulbright, USA and the World Bank. Erwandi has been a regular contributor to Doing Business publications by the World Bank and the IFC.
Hadiputranto, Hadinoto & Partners is a member of Baker & McKenzie International, a Swiss Verein.

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Mahardikha K. Sardjana is a Partner in Finance and Projects Practice Group, and has been specializing in the banking and financing works for more than 19 years. He has been actively involved and leading the group's merger and acquisition projects on financial institutions for the past 18 years which covers approximately 95% of mergers and acquisitions of banks by foreign investors.
Hadiputranto, Hadinoto & Partners is a member of Baker & McKenzie International, a Swiss Verein.

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Eddie is a partner in the Finance & Projects Practice Group of Hadiputranto, Hadinoto & Partners, with a special focus on banks and financial institution. He has had a varied career as a corporate lawyer and tax advisor in different jurisdictions including Indonesia, the Netherlands and Oman. Eddie's unique career background enables him to take cross-disciplinary, commercial, insightful and strategic approaches in handling cases of banks and financial institutions. Eddie is a trusted advisor of numerous international and local banks and financial institutions. Eddie received a prestigious HSP Huygens Scholarship from the Government of the Netherlands to take an LLM Degree in International Tax Law from Leiden University, the Netherlands in 2010 and also received a Fulbright IELSP Scholarship from the US Department of State in 2008.

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Johan Kurnia is a Senior Associate in Baker McKenzie, Jakarta office.
Hadiputranto, Hadinoto & Partners is a member of Baker & McKenzie International, a Swiss Verein.

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Jonathan Edward Tobing is an Associate in Baker McKenzie, Jakarta office.

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