Indonesia and South Korea to enhance cross-border payments

The central banks expect that it will promote digital economy and benefit the tourism sector.

Indonesia and South Korea have inked a memorandum of understanding (MOU) for closer cooperation in pursuing cross-border payment connectivity.

Bank Indonesia (BI) governor Perry Warjiyo and Bank of Korea (BOK) governor Chang Yong signed the MOU in Penang, Malaysia on 15 July, with the goal of establishing a framework to facilitate cross-border payment connectivity between the two countries.

BI and BOK expects that the MOU will support cross-border transactions between the two countries and promote the digital economy and finance in Indonesia and South Korea.

It is also expected to benefit their tourism sectors.

“The MOU, a testament to the ongoing efforts of BI and the BoK, is expected to create cheaper, faster, more inclusive, and more transparent cross-border payments between Indonesia and South Korea,” the two central banks said in a joint statement published on their websites.

“More importantly, it is set to play a pivotal role in promoting the digital economy and finance in both countries, marking a significant step towards a more interconnected and efficient financial landscape,” they added.