🧠 Food for thought

Implications, context, and why it matters.

This payment link is the latest step in a plan to reduce reliance on third-party currencies, including the US dollar

• The QR system runs on a framework for direct yen rupiah settlement in bilateral transactions. It started operating in August 2020, which reduces use of third party currencies 1.
• Indonesia–Japan local currency transaction (LCT) value reached US$5.1 billion between January and July 2025. That compares with US$2.23 billion in the same period of 2024 2.
• Bank Indonesia (BI), Indonesia’s central bank, said it already has similar arrangements with Malaysia, Singapore, and Thailand 1.
• The Japan rollout started at World Expo 2025 in Osaka plus select merchants at Haneda Airport. Plans call for expansion to other locations across Japan 1.

Interoperable QR codes could create new challenges for global payment networks

• The project sits within ASEAN Regional Payment Connectivity (RPC), which is working to standardise and connect national QR payment systems across the region 3.
• These new routes move money across borders in local currencies without relying on global card networks’ infrastructure. That could cut into card network transaction revenue and weaken their influence in the region 3.
• The approach offers a template for other regions seeking financial integration. It supports cross border payments in local currencies without adopting a single currency like the Euro 3.
• The rollout supports local fintech players such as GoPay, a digital wallet from Indonesian tech group GoTo. GoPay said it is expanding its payment network after BI said QRIS cross-border service will expand to Japan beginning in August 2025 4.