The BRICS TimesBank Indonesia and the People’s Bank of China are moving fast to connect their QR payment systems. The initiative signals a deeper shift in how Asia manages money without the US dollar in the middle.
Why two smartphones, one QR code, and no dollar could change Asian trade forever
Something quietly significant is happening in how Indonesia and China handle money between them. Bank Indonesia (BI) and the People’s Bank of China (PBoC) are pushing hard to fully connect their respective QR payment systems. When this cross-border QRIS link goes live, an Indonesian tourist in Shanghai will scan a code and pay in rupiah without touching the US dollar at all.
This is not just a fintech upgrade. It is a deliberate financial policy move by two of Asia’s largest economies.
What is actually happening on the ground
QRIS which stands for Quick Response Code Indonesian Standard is Indonesia’s unified QR payment system. It launched in 2019 and grew remarkably fast. By late 2025, QRIS had over 58 million users and more than 41 million merchants onboarded. Those numbers beat BI’s own targets ahead of schedule.
The cross-border trial between Indonesia and China formally kicked off on August 17, 2025 Indonesia’s 80th Independence Day. The launch ceremony in Beijing showed a live pilot transaction using an Indonesian mobile payment app. Simultaneously in Jakarta, selected users made payments through UnionPay and Alipay by scanning QRIS. The sandbox phase connected 22 Indonesian mobile payment apps to Chinese merchant networks, and Chinese users gained access to over 40 million QRIS merchants in Indonesia.
Bank Indonesia Deputy Governor Filianingsih Hendarta was clear about the process involved. “Cross-border QRIS requires MoUs, industry agreements, interlink development, sandboxing, and then implementation,” she said. The system was never behind schedule it was always a structured rollout.
The dollar question nobody is saying out loud
Here is the part that matters beyond the technology. Indonesia and China are settling bilateral transactions in local currencies rupiah and yuan bypassing the US dollar as an intermediary. This framework, formalized through an updated MoU signed at Jakarta’s Merdeka Palace in mid-2025, builds on a local currency transaction agreement that has existed since 2020.
Indonesia has already used a similar local-currency settlement model with Japan, allowing direct yen-rupiah transactions. Adding China turbocharges this approach. China now contributes a large portion of local currency transactions (LCT) outside ASEAN countries, according to BI’s Beijing representative Yulian Wihantoro.
For context, currency conversion costs are not trivial. They add friction to every trade deal, tourist transaction, and business transfer. Cutting out the dollar as a conversion layer reduces costs and reduces exposure to US monetary policy decisions something Jakarta and Beijing both have reason to care about.
Indonesia’s QRIS is becoming a regional payment backbone
This China linkage does not exist in isolation. Indonesia has already connected QRIS with Malaysia, Thailand, Singapore, and Japan. Trials with South Korea are underway, with full implementation targeted for 2026. Saudi Arabia and India are next in line. Once all these connections go live, QRIS will cover seven major Asian markets.
BI Governor Perry Warjiyo has been explicit about the ambition. “We continue to expand QRIS usage through international cooperation,” he told lawmakers in September 2025. The goal is not only digital convenience but economic integration supporting MSMEs, boosting tourism, and deepening trade without structural dependence on foreign payment rails.
The Alipay piece and why it changes the scale
The UnionPay connection established in the sandbox phase is significant, but Alipay is the real volume play. Alipay has a far larger merchant network in China. Bank Indonesia’s Beijing office confirmed in March 2026 that Indonesians will be able to pay via QRIS on Alipay starting May 2026. This extends QRIS access to a dramatically wider base of merchants and users inside China.
For Indonesians studying, working, or traveling in China, this removes a persistent friction point. No more carrying cash, no more foreign currency exchanges, no more relying on Visa or Mastercard both of which are US-headquartered companies that currently operate in Indonesia. The US Trade Representative has already flagged QRIS as a trade barrier, calling it a restriction on American payment companies. Bank Indonesia has pushed back, stating it remains open to cooperation where both sides agree on terms.
The bigger strategic picture
What Indonesia is building whether or not it uses the word “dedollarization” is a payment infrastructure that routes value through local systems, local currencies, and local institutions. This matters at a time when global trade is fragmenting and economies across the Global South are quietly reducing their exposure to dollar-denominated financial systems.
Indonesia is not alone in this. India has been pushing the UPI system internationally. Brazil launched Pix. Southeast Asia’s PayNow-PromptPay linkage predates all of this. But Indonesia’s QRIS is moving faster and reaching further than most observers expected.
The Indonesia-China cross-border QRIS system is one link in a broader chain. But it is a consequential one joining Asia’s fourth-largest economy to its largest, through a payment channel that does not run through Wall Street.
