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The Central Bank of the UAE said its governor Khaled Mohamed Balama welcomed Indonesian Ambassador Husin Bagis at the bank’s headquarters in Abu Dhabi where the two sides reviewed ways to enhance collaboration on payment systems and financial infrastructure. According to a statement distributed by the Emirates News Agency the meeting focused on opportunities to integrate payment platforms that could reduce transaction costs and settlement times between the two countries. The CBUAE has pursued multiple such linkages in recent years with partners across Asia and the Middle East the central bank noted in earlier public updates on its digital transformation strategy.
Balama outlined the UAE’s progress in developing instant payment systems during the discussion the Emirates News Agency reported. The governor highlighted the Instant Payment and Securities Settlement System launched by the CBUAE in 2022 which now processes a growing share of domestic retail transactions. Indonesian officials have expressed interest in similar real-time payment frameworks the ambassador conveyed according to the same statement from the news agency.
Bilateral trade between the UAE and Indonesia reached USD 5.2 billion in 2024 according to figures published by the UAE Ministry of Economy with non-oil exports showing steady growth over the past three years. The Ministry of Economy data places Indonesia among the UAE’s top 15 trading partners in Southeast Asia a position that has prompted expanded financial cooperation agreements. Cross-border payment efficiencies could further support that trade volume the two officials agreed during their July 24 meeting the Emirates News Agency stated.
The Central Bank of the UAE has signed several memoranda of understanding with regional counterparts to facilitate local-currency settlements and reduce reliance on intermediary currencies a central bank assessment found last year. In the meeting with the Indonesian ambassador Balama referenced ongoing projects that link UAE payment rails with those in ASEAN nations the Emirates News Agency reported. Indonesia’s central bank Bank Indonesia has similarly expanded its cross-border QR payment initiatives which now connect with networks in multiple Gulf states according to Bank Indonesia publications.
Ambassador Bagis conveyed his government’s readiness to advance technical cooperation on regulatory alignment and cybersecurity standards for payment systems the Emirates News Agency reported. The Indonesian envoy noted that stronger payment ties would benefit businesses and individuals in both countries by lowering remittance costs which the World Bank estimated averaged 5.2 percent for flows from the UAE to Southeast Asia in its latest global remittance report. Both sides agreed to form a joint working group to explore pilot projects the statement issued after the meeting added.
The CBUAE governor also updated the ambassador on the UAE’s broader fintech strategy which includes regulatory sandboxes and digital identity frameworks that support cross-border use cases according to the bank’s annual report released earlier this year. Indonesia has developed comparable digital financial infrastructure under its national payment gateway system Bank Indonesia figures show. The July 24 discussions are expected to lead to further technical exchanges in the coming months the Emirates News Agency reported.
