Recently, CHINA TAIPING's Indonesian subsidiary, in collaboration with Bank of China's Jakarta branch, has successfully executed the first cross-border renminbi settlement reinsurance transactions in the Indonesian market. This involved the renminbi cross-border payment of reinsurance premiums for four policies under the Indonesia Guangqing Nickel-Cobalt Project's engineering insurance. This initiative represents a proactive exploration of renminbi internationalization within a real economic sector, contributing to a richer array of cross-border renminbi application scenarios and offering more diversified financial service options for Chinese enterprises operating overseas.
In recent years, the pace of Chinese enterprises expanding abroad has accelerated steadily. The scale of renminbi receipts and payments for Chinese companies in Indonesia has been growing, with a notably stronger willingness to use renminbi for valuation, payment, and reinsurance within the insurance domain.
China and Indonesia have been consistently deepening bilateral financial cooperation. In 2020, the People's Bank of China and Bank Indonesia established a Local Currency Settlement (LCS) cooperation framework. In September 2025, this framework was upgraded to a Local Currency Transaction (LCT) mechanism covering all items of the balance of payments, providing a robust institutional foundation for the cross-border use of renminbi in the insurance sector.
Initiating a Replicable Business Model
As a key overseas institution for CHINA TAIPING in serving the high-quality co-construction of the Belt and Road Initiative, its Indonesian subsidiary actively serves as a bridge. It has established a collaboration mechanism with Bank of China's Jakarta branch to conduct policy research on the application of cross-border renminbi in insurance, initially forming a replicable and scalable business model.
Domestic Coordination and Facilitation
Within China, efforts focused on researching and developing implementation plans for renminbi usage in corporate property insurance and reinsurance, clarifying application pathways. The work concentrated on the core aspects of cross-border renminbi reinsurance settlement, interpreting policies, and addressing operational bottlenecks.
Overseas Engagement and Service Provision
In Indonesia, the subsidiary conducted targeted seminars, providing one-on-one explanations to enterprises about the policy basis and operational procedures for using renminbi in insurance, aiming to fully stimulate market participants' willingness to adopt it. It also offered a comprehensive suite of financial services for enterprises and domestic insurance institutions, including account opening, renminbi conversion under the LCT mechanism, cross-border renminbi settlement, and exchange rate risk management.
Looking ahead, CHINA TAIPING will continue to leverage its strengths in international operations and the functional role of insurance protection, aiming to contribute more significantly to serving Chinese enterprises' global expansion and the high-quality joint development of the Belt and Road Initiative.
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