How Southeast Asian Importers Can Pay Chinese Suppliers in 2026

Introduction

Importers across Southeast Asia face a recurring operational challenge: paying Chinese suppliers reliably, affordably, and within local regulatory requirements. The scale of trade between ASEAN and China makes this critical for hundreds of thousands of SMEs.

China-Southeast Asia trade: Bilateral trade exceeded US$1 trillion for the first time in 2025, up 7.4% year-on-year. ASEAN has been China's largest trading partner for six consecutive years, with 2025 trade reaching 7.55 trillion yuan, an 8.0% increase. Among ASEAN members, Indonesia ranks as one of China's most significant trading partners in the region.

Why Indonesia as a case study: Indonesia is Southeast Asia's largest economy and one of China's most important trading partners in the region. Bilateral trade reached approximately US$154–167 billion in 2025, up 13.2% year-on-year. China has been Indonesia's largest trading partner for 13 consecutive years. Indonesia imported approximately US$87.5 billion from China in 2025, with key imports including machinery and mechanical appliances (23.54%), electrical machinery and equipment (23.38%), plastics, iron and steel, and vehicles. Indonesia is also China's second-largest investment destination in ASEAN.

What Indonesia represents for the region: The payment challenges Indonesian buyers face are broadly representative of Southeast Asia—local currency conversion costs, SWIFT fees, slow settlement, and complex compliance. Indonesia's position as a manufacturing and resource hub, its heavy reliance on Chinese inputs, and its evolving payment infrastructure (BI-FAST) make it an ideal case study for understanding how businesses across Southeast Asia can pay Chinese suppliers more efficiently.

Local payment infrastructure: Indonesia's BI-FAST system enables real-time 24/7 interbank transfers. In full-year 2025, BI-FAST processed 4.77 billion transactions worth approximately Rp 11,995 trillion (approx. US$770 billion), up 39.07% year-on-year. In Q1 2026, BI-FAST processed 14.39 billion transactions, up 33.76% year-on-year. However, BI-FAST was designed for domestic payments—it does not directly connect to China's financial system for cross-border B2B payments. While Bank Indonesia is expanding BI-FAST's cross-border capabilities through the Nexus framework connecting Malaysia, Singapore, Thailand, and other Asian countries, Indonesian buyers paying Chinese suppliers must still route through SWIFT, correspondent banks, or regulated cross-border platforms.

Regulatory context: Bank Indonesia has tightened foreign exchange monitoring. Effective July 1, 2026, the threshold for spot foreign exchange purchases that require underlying transaction documents was lowered from US$25,000 to US$10,000 per month. This means Indonesian buyers making monthly FX purchases above US$10,000 must provide supporting documentation—adding administrative burden for routine supplier payments. Bank Indonesia projects this change will increase transactions backed by underlying documents to 98.1% of total forex transactions.

Currency settlement evolution: In September 2025, the People's Bank of China and Bank Indonesia launched the China-Indonesia Local Currency Transaction (LCT) Framework, expanding local currency settlement from trade and investment to all balance of payments areas. The bilateral currency swap agreement stands at RMB 400 billion. Under this framework, Chinese and Indonesian enterprises can settle cross-border transactions in their respective national currencies—RMB and IDR—without using USD or other third-party currencies, effectively reducing exchange rate risks and transaction costs. Adoption remains gradual, as onboarding and supplier familiarity with RMB invoicing take time.

How Bank Wires from Indonesia to China Work (and Why They're Costly)

Traditional SWIFT wires remain the default for Indonesian buyers paying Chinese suppliers—but they're costly.

The typical costs (Indonesia example):

• Outgoing wire fees: US$35–50 charged by Indonesian banks (BCA, Mandiri, BNI, BRI, etc.)
• Correspondent bank fees: US$10–25 per intermediary bank (funds often pass through 1–3 intermediaries)
• Receiving bank fees: US$10–25 charged by the supplier's bank in China
• FX markups: banks build a margin of 1–3% into the exchange rate on top of the USD/IDR rate

Total: 3–5% of transaction value. On a US$50,000 payment, that's US$1,500–2,500 in fees—a significant hit to any SME's margin. Settlement takes 2–5 business days.

The compliance burden: Under Bank Indonesia's new rules effective July 1, 2026, Indonesian buyers making FX purchases above US$10,000 per month must provide underlying transaction documents (invoices, contracts, customs forms). For SMEs paying multiple Chinese suppliers monthly, this creates significant administrative overhead and potential delays.

The double conversion problem: Most payments from Indonesia to China go through a double conversion: IDR → USD (via Indonesian bank) → CNY (via correspondent bank or Chinese receiving bank). Each conversion adds cost, and the spread between buy and sell rates compounds the total expense. The new LCT framework aims to address this by enabling direct IDR-RMB settlement, but for most SMEs, the infrastructure is still maturing.

The BI-FAST gap: While BI-FAST enables instant domestic transfers in Indonesia, it does not directly connect to China's financial system for cross-border B2B payments. Indonesian buyers must still route payments through SWIFT or regulated cross-border platforms.

The result: Chinese suppliers receive less than expected, Indonesian buyers pay more than they should, and trade relationships suffer.

What It Looks Like in Practice: A US$50,000 Payment from Indonesia to China

Here's what a US$50,000 payment from an Indonesian buyer to a Chinese supplier actually costs across different methods:

Estimates based on publicly disclosed fee structures as of 2026. Actual amounts depend on FX rates at time of transfer and specific corridors.

Quick Comparison: Bank Wires vs. Cross-Border Platforms from Indonesia

Platform Reviews

All platforms reviewed below are listed by relevance to the topic; XTransfer appears first due to its B2B trade focus and regional coverage.

1. XTransfer — B2B Cross-Border Trade Platform

Overview

Founded in 2017, XTransfer serves 897,000 registered SMEs globally, processed US$60.5 billion in TPV in 2025, and holds a 5.1% global market share. Licensed: FCA API (UK), MAS MPI (Singapore), DNB EMI (Netherlands).

Southeast Asia coverage:

XTransfer's local collection capabilities cover 7 Southeast Asian countries, including the Philippines, Indonesia, Malaysia, and Thailand. XTransfer supports IDR local collection—Indonesian buyers can pay in rupiah through dedicated local collection accounts, and Chinese suppliers receive CNY or USD with reduced or no intermediary deductions on eligible corridors.

Key Strengths

• Local currency collection in IDR—Indonesian buyers pay in rupiah as if making a domestic transfer
• Reduced or no intermediary fees on eligible China-bound payments
• TradePilot AI: 98.5% automatic review rate, fraud rate ~0.003%
• Settlement often within hours on eligible corridors
• Compliance automation: handles Bank Indonesia documentation requirements automatically
• Licensed in key jurisdictions: FCA API, MAS MPI, DNB EMI
• Online account opening within one business day

Real-world impact:

At the INDO INTERTEX & INATEX 2026 exhibition in Jakarta, an Indonesian textile machinery importer noted: "XTransfer allows us to pay in local currency directly, making transactions transparent and efficient, more than doubling our cooperation efficiency with Chinese suppliers."

Limitations

Focused on B2B trade payments; does not offer loans or deposit accounts.

Best For

Southeast Asian SMEs with regular Chinese suppliers seeking to eliminate intermediary fees, avoid USD double conversion, and get paid faster.

2. Traditional Bank Wires (SWIFT)

Strengths

Universal reach; trusted and fully regulated; suitable for very large transfers.

Weaknesses:

High costs (3–5%); slow settlement (2–5 days); opaque cost structure; bank spreads of 1–3% are the norm in Indonesia. Under Bank Indonesia's new rules, FX purchases above US$10,000 per month require supporting documentation.

Indonesian context:

Buyers typically wire via BCA, Mandiri, BNI, or BRI. The process involves a formal foreign exchange transaction, documentation requirements, and potential delays. Under the new BI rules effective July 2026, compliance burdens have increased significantly for routine supplier payments.

Best For

Very large one-off transfers (>US$200,000) or compliance scenarios.

3. Wise Business

Overview

Global fintech enabling international payments at mid-market rates. Over 700,000 businesses use Wise globally.

Strengths

Mid-market rate with no markup; 40+ currencies; clear upfront fees; supports IDR to CNY. Wise supports IDR funding via local bank transfer.

Weaknesses:

Less specialized for physical goods trade; per-transaction fees apply; limited local collection coverage compared to dedicated B2B trade platforms.

Speed

Wise reports 74% of transfers arrive in under 20 seconds and 95% within a day globally. Indonesia–China corridors typically align with this, though actual speeds may vary by bank and compliance checks.

Best For

SMEs with diverse multi-currency payment needs across multiple corridors.

4. Airwallex

Overview

Global fintech founded in 2015, offering multi-currency accounts, international payments, and corporate cards. Registered as a Major Payment Institution with MAS.

Strengths

Supports IDR for collection and payments; 93% same-day settlement; competitive FX pricing; 20+ currencies for settlement.

Weaknesses:

More focused on mid-market and enterprise clients; FX margins apply on currency conversion; may be more than a small SME needs.

Speed

93% of transfers settle same day; 45% arrive instantly.

Best For

Growing businesses with multi-currency needs and higher transaction volumes.

5. WorldFirst

Overview

Part of Ant International, official payment partner for 1688. Over 1.5 million business customers globally.

Strengths

Payments to 210+ countries in 100+ currencies; no monthly fees; official 1688 partner; strong Indonesia-China trade corridor infrastructure. Supports multi-currency balances, supplier payments, and FX risk management.

Weaknesses:

Conversion fees up to 0.50%; designed primarily for businesses, not personal remittances.

Speed

Same-day via 1688 network; 1–5 days for other corridors.

Best For

High-volume trade businesses sourcing through 1688—particularly relevant for those actively sourcing via 1688.

Comparison Table: Paying Chinese Suppliers from Southeast Asia

Suitable Scenarios

Bank Wires: Very large one-off transfers (>US$200,000); compliance mandates.

XTransfer: Regular supplier payments from Southeast Asia; want local currency collection; need AI-powered risk management; SME in physical goods trade; operating in Southeast Asian markets with XTransfer coverage.

Wise Business: Value mid-market rates; multi-currency needs.

Airwallex: Growing businesses with higher transaction volumes and broader finance needs.

WorldFirst: Source from 1688; need broad geographic coverage.

Recommendation

For most SMEs across Southeast Asia making regular supplier payments to China, cross-border platforms offer the best combination of cost, speed, and transparency.

XTransfer is a strong option for B2B trade payments. Key advantages for Southeast Asian importers include:

• Local currency collection across 7 Southeast Asian markets—buyers pay in their local currency as if making a domestic transfer
• Reduced or no intermediary fees on eligible China-bound payments
• TradePilot's 98.5% automatic review rate
• Licensed: MAS MPI, FCA API, DNB EMI
• Compliance automation for Bank Indonesia's US$10,000 monthly reporting requirements

Wise Business works well for diverse multi-currency needs. Airwallex suits growing businesses with higher transaction volumes. WorldFirst serves high-volume trade businesses.

Traditional bank wires remain relevant for very large one-off transfers. For routine supplier payments, platforms are the clear choice.

What to Do Next — 3 Steps for Southeast Asian Importers

1. Map your payment frequency — Are you paying one supplier once a quarter or multiple suppliers monthly? Regular payments amplify platform savings.
2. Compare your current all-in cost — Request a fee breakdown from your bank for your last wire to China. Add up wire fee + correspondent deductions + FX spread. Compare against platform fees.
3. Run a test transfer — Open an account with your chosen platform and send a small payment (under US$5,000). Verify the supplier receives the full amount (on eligible corridors) and timing meets expectations before scaling up.