Indonesia Eyes Saudi, India for Digital Payments Expansion

JAKARTA-Indonesia’s central bank is in discussions with counterparts in Saudi Arabia, India and Hong Kong to expand its cross-border digital payment system, seeking to deepen regional economic connectivity and make transactions easier for international travelers.

The initiative builds on Indonesia’s Quick Response Indonesia Standard (QRIS), a standardized QR code payment system introduced in 2019 to ensure interoperability across banks and electronic wallets. The platform has grown to nearly 62 million users and is accepted by more than 44 million merchants across the country.

Bank Indonesia Deputy Governor Filianingsih Hendarta said the central bank was continuing talks with India while holding more advanced discussions with Saudi Arabia and Hong Kong on linking their payment systems.

“We are continuing discussions with India for cross-border (QRIS payment). We have also started in-depth discussions with Saudi Arabia and Hong Kong,” Hendarta said during a press briefing earlier this week.

She said implementation would depend on each country’s regulatory framework, payment infrastructure, industry participation and coordination among relevant authorities, adding that officials hoped the arrangements could be introduced soon.

Indonesia has already expanded QRIS connectivity to 10 countries, including China, Singapore, Japan and South Korea, allowing users to make cross-border payments using their domestic banking applications and electronic wallets.

Under the arrangement with China, Indonesian travelers can use QRIS-enabled payment applications to scan QR codes registered under Alipay and UnionPay at more than 80 million merchants across China. Chinese visitors using the same payment platforms can make purchases at QRIS-enabled businesses throughout Indonesia.

Hendarta said the cross-border payment system was designed to simplify transactions for visitors by allowing them to use payment applications from their home countries rather than relying on cash or alternative payment methods.

She added that the initiative also supports economic activity by encouraging tourism and benefiting Indonesia’s small and medium-sized enterprises, which account for about 99% of businesses nationwide. Most of the country’s more than 44 million QRIS merchants are micro, small and medium enterprises.

The expansion forms part of Indonesia’s broader effort to strengthen digital financial integration with regional partners as demand for interoperable electronic payment systems continues to grow.