Indonesia and Hong Kong move toward greater use of local currencies in cross-border transactions after central banking authorities sign a cooperation agreement. The People’s Bank of China (PBoC), the Hong Kong Monetary Authority (HKMA) and Bank Indonesia (BI) sign a memorandum of understanding to establish a framework for bilateral transactions between Indonesia and Hong Kong. The arrangement is intended to support the direct exchange and settlement of Indonesian rupiah (IDR) and Chinese yuan (offshore renminbi) in cross-border trade and investment activities involving companies and institutions in both places. According to the HKMA, the framework is designed to facilitate currency transactions and cooperation between the three authorities, laying out the basis for how IDR and offshore renminbi could be used more directly rather than relying on other currencies for settlement. The agreement signals coordination among the monetary authorities to promote payments and investment activity across the Indonesia–Hong Kong corridor using IDR and offshore renminbi. Further implementation steps are not detailed in the available reports.