The recent launch of a cross-border QR payment system by Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) marks a significant step in ASEAN’s regional payment connectivity, promising to stimulate economic growth, particularly for small and medium-sized enterprises (SMEs) and the tourism sector.
This landmark interconnectivity initiative is a part of the ongoing Regional Payment Connectivity collaboration and aligns with the 2025 Indonesian Payment System Blueprint. It aims to facilitate faster, cheaper, transparent, and inclusive cross-border transactions.
The QR payment integration allows retail payments by scanning QRIS or QR Network for Electronic Transfers Singapore (NETS) at merchant locations, eliminating the need for carrying cash and enabling direct QRIS use.
Professor Ariawan Gunadi, an expert in Business Law and International Trade, emphasizes that this interconnectivity makes transactions cheaper than using cash in foreign currencies, as it avoids currency conversion and foreign ATM withdrawal fees
The integration of the Indonesian and Singaporean digital economic and financial ecosystems is a major achievement, enhancing trade relations and fostering the growth of cross-border e-commerce activities.
The initiative also supports tourism growth, as evidenced by the substantial number of travelers between Singapore and Indonesia, with 600,000 tourists from Singapore to Indonesia and 1.1 million from Indonesia to Singapore recorded in the first half of 2023
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The Indonesian and Singaporean governments are expected to further this collaboration by facilitating local currency settlement using Indonesian Rupiah and Singaporean Dollars for cross-border payments.
The QR payment interconnectivity between Indonesia and Singapore represents an important step towards a more integrated and robust ASEAN economy. This initiative not only streamlines transactions but also strengthens economic ties and supports the recovery of the tourism sector post-pandemic.
Bank Indonesia and the Monetary Authority of Singapore have inaugurated a cross-border QR payment system, enhancing economic and trade relations between Indonesia and Singapore. This system facilitates easier transactions for SMEs and tourists, reducing costs and promoting regional economic growth. The initiative is part of ASEAN’s broader strategy to strengthen regional payment connectivity, mirroring the integrated payment systems of regions like the European Union.
